The House of Representatives has directed electricity distribution companies (DisCos) in Nigeria to undertake a recapitalization exercise amounting to ₦500 billion. The initiative aims to strengthen the financial stability of the companies and enhance their ability to meet their service obligations to Nigerians effectively.
The resolution was adopted on Wednesday following a motion titled “Need to Address the Activities of Distribution Companies in Nigeria,” sponsored by Ayokunle Isiaka, who represents the Ifo/Ewekoro Federal Constituency of Ogun State.
In presenting the motion, Isiaka expressed concerns over recent practices by DisCos that, according to him, jeopardize the nation’s economic stability and the well-being of citizens. He criticized the companies for charging Nigerians additional fees for meter replacements, despite customers already paying for the initial installations, describing the situation as exploitative and unacceptable.
The House called for urgent measures to address these issues, emphasizing the importance of accountability and improved service delivery within the electricity distribution sector.
“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,” he said.
“The House is concerned that 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 All Progressives Congress lawmaker also expressed concern over what he termed the ‘Sabotage of Economic Development’ by DisCos, where essential services are used against citizens, stifling growth and development.
He added that despite constant regulatory oversight and demands for accountability from the Committee on Power, DisCos have remained recalcitrant, operating with impunity and disregarding consumer rights.
Following the adoption of the motion, Speaker Tajudeen Abbas urged DisCos to “undergo recapitalisation of no less than N500bn, and only those with the required financial capacity, which can provide maximum satisfaction to consumers, should be allowed to continue operating.”
The House of Representatives has instructed the Federal Ministry of Power to classify electricity distribution companies (DisCos) as **non-state actors** and implement immediate measures to curb their alleged reckless actions, which have been deemed a threat to Nigeria’s economy.
In addition, the House directed its **Committee on Power** to investigate the activities of DisCos with the aim of holding them accountable and protecting the rights of consumers. The committee is also tasked with launching **awareness campaigns** to educate citizens about their rights as electricity consumers and ensuring that strict regulations governing DisCos are enforced to promote **transparency and fairness** in their operations.
These directives are part of the House’s broader efforts to address inefficiencies and exploitative practices within the electricity distribution sector while safeguarding the interests of the Nigerian public.
