House of Reps Proposes N500bn Capital Base for Electricity DisCos

The House of Representatives pushes for a N500 billion minimum capital base for electricity distribution companies (DisCos) to enhance Nigeria’s power sector.

The House of Representatives has requested that Electricity Distribution Companies (DisCos) undergo a recapitalization exercise amounting to N500 billion. This initiative aims to enhance their financial stability and improve their ability to serve consumers effectively.

This development came after a motion was adopted regarding the “Need to Address the Activities of Distribution Companies in Nigeria.”

The motion was introduced by Hon. Ayokunle Isiaka, the representative of Ifo/Ewekoro Federal Constituency in Ogun State, during Wednesday’s plenary session.

Introducing the motion, the lawmaker highlighted that DISCOs’ recent activities nationwide have significantly threatened Nigeria’s economic stability and citizens’ welfare.

Isiaka expressed concern that even after Nigerians pay for electricity meter installations, DisCos still require payment for replacing the meters under questionable conditions.

He stated that Nigerian consumers initially covered the costs for electricity meter installations, yet Discos are now seeking extra payments to replace these meters under questionable reasons. This practice is eroding consumer trust and increasing their financial burdens.

READ ALSO: DisCos Ordered to Replace Faulty Meters – NERC

Consumers are being pressured to pay for meters they previously funded, leading to financial strain on households and businesses already dealing with economic difficulties.

Despite continuous regulatory oversight and demands for accountability from the Committee on Power, these companies continued to operate with impunity, showing a blatant disregard for consumer rights.

The actions of the Discos present a major threat to Nigeria’s economic stability and the well-being of its citizens.

When the motion was adopted, Speaker Abbas Tajudeen led the House in directing DisCos to “undertake a recapitalization of at least N500 billion. Only those with sufficient financial strength who can ensure maximum consumer satisfaction will be permitted to continue operations.”

Additionally, it urged the Federal Ministry of Power to officially identify DisCos as non-state actors and promptly take action against their irresponsible behavior that was endangering the country’s economy. It also instructed its Committee on Power to conduct an investigation into the activities of power distribution companies.