The Nigerian House of Representatives has mandated DisCos to recapitalize with a minimum of N500 billion to address operational inefficiencies and consumer exploitation. The directive aims to ensure financial stability, improved service delivery, and accountability in the power sector while protecting citizens from unfair practices
The House of Representatives has mandated electricity distribution companies (DisCos) in Nigeria to undergo a recapitalization exercise worth at least N500 billion. This decision was reached during a plenary session following a motion titled “Need to Address the Activities of Distribution Companies in Nigeria,” sponsored by Hon. Ayokunle Isiaka, representing the Ifo/Ewekoro Federal Constituency of Ogun State.
Isiaka expressed concerns about the exploitative practices of DisCos, particularly their demands for payment to replace electricity meters that consumers had previously financed. He highlighted how these actions have strained households and businesses, undermining consumer trust and the country’s economic stability. Despite ongoing regulatory oversight, DisCos have been accused of operating with impunity and disregarding consumer rights.
The motion emphasized the importance of ensuring that only financially capable DisCos, those able to meet consumer expectations, continue operations. In response, the House, led by Speaker Abbas Tajudeen, called on the Federal Ministry of Power to classify DisCos as non-state actors. It also urged the ministry to take decisive measures to address their misconduct, which poses risks to Nigeria’s economy.
Additionally, the Committee on Power has been directed to investigate the activities of DisCos further. The House aims to enforce accountability and ensure consumers are no longer burdened by unfair practices in the electricity distribution sector. This recapitalization requirement seeks to enhance service delivery and restore public confidence in the power industry.
