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Reps Advocates N500bn Capital Base For DISCOs

By Gloria Ikibah
The House of Representatives has directed electricity distribution companies to undergo a recapitalisation exercise of N500bn for them to be in a strong financial situation, in order to discharge their responsibility to the Nigerian public.
The House also directed the Federal Ministry of Power to declare DISCOs as non-state actors and take immediate measures to address their reckless actions which are threatening the nation’s economy.
This resolution was sequel to the adoption of a motion on “Need to address the activities of distribution companies in Nigeria,” sponsored by Rep.Ayokunle Isiaka, member representing Ifo/Ewekoro Federal Constituency of Ogun State, on Wednesday at plenary.
Leadingthe debate, Isiaka who solicited the support of other lawmakers, noted that in recent times, the activities of DISCOs across the country have posed a significant threat to the nation’s economic stability and the welfare of Nigerians.
He expressed worries that Nigerians after paying for electricity meter installation, distribution companies still go ahead to demand payment for the replacement of the meters in controversial circumstances.
He said: “The House notes that Nigerian consumers paid for electricity meters installation, but Discos are demanding additional payments for the replacement of these metres under dubious pretences, undermining consumer trust and exacerbating financial burdens.
“The House is worried that consumers are being coerced into paying for meters which they have earlier financed, causing financial strain on households and businesses already facing economic challenges.”
The lawmaker also expressed worry over what he termed ‘Sabotage  of economic development’ by DISCOs where essential services are used against citizens, thus stifling growth and development.
Rep. Isiaka added that 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.”
Speaker Tajudeen Abbas in his ruling urged 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.
The House unanimously adopted the motion and mandated its Commitee on Power to investigate the activities of distribution companies in Nigeria with the intent to hold them accountable and safeguard consumer rights.
The House mandated the committee to examine the implementation of strict regulations governing the operations of DISCOs to ensure transparency and fairness in dealings with consumers, and carry out awareness campaigns on the rights of consumers.
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