The Nigerian House of Representatives has called for a N500 billion recapitalisation base for electricity distribution companies (DisCos) following concerns over their operations and treatment of consumers.
The motion, which was sponsored by Ayokunle Isiaka, the member representing Ifo/Ewekoro Federal Constituency of Ogun State, seeks to address the growing dissatisfaction with the services provided by electricity distribution companies in the country.
Isiaka argued that the actions of the DisCos were putting the economic stability and well-being of Nigerians at risk. He expressed particular concern over the additional payments consumers are being asked to make for the replacement of electricity meters.
The lawmaker explained that despite Nigerian consumers already paying for the installation of their meters, DisCos were still demanding extra payments for replacements, often under questionable circumstances.
“The House notes that Nigerian consumers paid for electricity meter installation, but DisCos are demanding additional payments for the replacement of these meters under dubious pretenses, undermining consumer trust and exacerbating financial burdens,” Isiaka said during the presentation of the motion.
He added, “Consumers are being coerced into paying for meters they have already financed, putting additional financial strain on households and businesses already facing economic challenges.”
The motion was met with strong support from other lawmakers, who echoed concerns about the increasing financial strain on Nigerians, already grappling with high electricity costs and unstable power supply.
Speaker of the House of Representatives, Tajudeen Abbas, emphasized the need for the DisCos to undergo significant financial reform.
“I urge the distribution companies to undergo recapitalisation of no less than N500 billion. Only those with the required financial capacity to provide maximum satisfaction to consumers should be allowed to continue operating,” Speaker Abbas stated.
This demand for recapitalisation comes amid mounting frustration from Nigerians who feel the distribution companies have failed to improve services despite regular tariff increases. Many consumers have complained about poor electricity supply, high bills, and the constant demand for additional payments for services that have already been paid for.
In response to these concerns, the House of Representatives has also mandated the Ministry of Power to declare the DisCos as “non-state actors.” This would remove the state’s responsibility from their operations, making the companies fully accountable for their actions.
The motion also included a directive for the Ministry of Power to take immediate action against the DisCos for what lawmakers described as “reckless actions” that are damaging to the national economy.
The Federal Ministry of Power has been tasked with creating strict regulations to govern the operations of the DisCos and ensure fairness in their dealings with consumers.
Lawmakers have also called for the establishment of consumer rights awareness campaigns to educate Nigerians on their rights regarding electricity services.
“The House Committee on Power will be tasked with carrying out awareness campaigns to inform consumers about their rights and how they can hold these companies accountable for their actions,” Isiaka said.
