House Recommends N500bn Recapitalisation for DISCOs

The House of Representatives has urged Nigeria’s Electricity Distribution Companies (DISCOs) to undergo a recapitalisation process requiring at least N500 billion to strengthen their financial capacity and improve service delivery to consumers.

This recommendation followed a motion titled “Need to Address the Activities of Distribution Companies in Nigeria” brought forward by Hon. Ayokunle Isiaka, representing Ifo/Ewekoro Federal Constituency, during Wednesday’s plenary session.

In his motion, Hon. Isiaka raised concerns about the growing inefficiencies and controversial practices of DISCOs, which he said are undermining consumer trust and worsening the economic strain on Nigerians. He highlighted instances where consumers, after financing the installation of electricity meters, are still required to pay additional fees for their replacement under questionable circumstances.

“The actions of DISCOs have imposed financial burdens on households and businesses already grappling with economic challenges. Despite regulatory oversight and demands for accountability, these companies continue to operate with impunity and disregard for consumer rights,” Isiaka said, warning that their actions pose a serious threat to Nigeria’s economic stability and citizens’ welfare.

The House, under the leadership of Speaker Abbas Tajudeen, adopted the motion and called for DISCOs to meet a capital base of no less than N500 billion. It recommended that only operators with the financial strength to ensure consumer satisfaction should be allowed to remain in the sector.

Additionally, the House directed the Federal Ministry of Power to classify DISCOs as non-state actors and take immediate steps to address their “reckless actions” that are jeopardizing the nation’s economy.

To ensure accountability, the House mandated its Committee on Power to investigate the activities of DISCOs and implement measures to safeguard consumer rights and hold the companies accountable for their operations.