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Posted By MrCover On November 21st, 2024

The House of Representatives has asked Electricity Distribution Companies, DisCos, to undergo a N500 billion recapitalisation exercise to strengthen their financial position to discharge their responsibility to consumers.

The development followed the adoption of a motion on the “Need to Address the Activities of Distribution Companies in Nigeria.”

The motion was sponsored by Hon. Ayokunle Isiaka, a member representing the Ifo/Ewekoro Federal Constituency of Ogun State, at plenary on Wednesday.

Moving the motion, the lawmaker noted that recently the activities of DISCOs across the country have posed a significant threat to the nation’s economic stability and the welfare of Nigerians.

Isiaka expressed worry that Nigerians, after paying for electricity meter installations, DisCos still demand payment for the replacement of the meters in controversial circumstances.

He said: “Nigerian consumers paid for electricity meter installation, but Discos are demanding additional payments for the replacement of these meters under dubious pretences, undermining consumer trust and exacerbating financial burdens.

“Consumers are being coerced into paying for meters that they had earlier financed, causing financial strain on households and businesses already facing economic challenges.

“Despite constant regulatory oversight and demand for accountability by the Committee on Power from these companies, Discos remained recalcitrant in operating with impunity and disregard for consumer rights.

“The Discos’ actions pose a significant threat to Nigeria’s economic stability and welfare of citizens.”

In adopting the motion, the House presided over by the Speaker, Abbas Tajudeen, asked DisCos to “Undergo recapitalization of not less than N500bn and only those with the required financial muzzles that can provide maximum satisfaction to consumers are allowed the space to continue to operate.”

It further asked the Federal Ministry of Power to declare DisCos as non-state actors and take immediate measures to address their reckless actions, which were threatening the nation’s economy, while mandating its Committee on Power to investigate the activities of power distribution companies.

Source: https://dailypost.ng/2024/11/20/reps-seek-n500bn-capital-base-for-discos/