REPS DEMAND N500BN CAPITAL BASE FOR DISCOS
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Electricity distribution businesses have been ordered by the House of Representatives to recapitalize for N500 billion in order to improve their financial stability and make sure they can effectively fulfill their responsibilities to the Nigerian people.
This resolution followed the adoption on Wednesday of a motion titled “Need to Address the Activities of Distribution Companies in Nigeria,” sponsored by Ayokunle Isiaka, the member representing the Ifo/Ewekoro Federal Constituency of Ogun State.
Isiaka emphasized in his call for support for the motion that recent DisCo activities have seriously threatened both the welfare of Nigerians and the country’s economic stability.
He voiced worry that distribution corporations continue to demand extra payments for the replacement of power meters under contentious conditions, even though Nigerians have already paid for the installation of these meters.
“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 pretences, 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 continued by saying that DisCos have continued to act obstinately, operating with impunity and ignoring consumer rights in spite of ongoing regulatory supervision and the Committee on Power’s demands for responsibility.
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.”
Additionally, the House instructed the Federal Ministry of Power to designate DisCos as non-state actors and take prompt action to rectify their careless behavior that jeopardizes the country’s economy.
In order to hold DisCos responsible and protect consumer rights, the House also directed its Committee on Power to look into their operations.
In order to guarantee openness and equity in customer interactions, the committee was also charged with conducting consumer rights awareness programs and investigating the application of stringent rules governing DisCos.
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