The House of Representatives has directed electricity distribution companies (DisCos) in Nigeria to undertake a recapitalisation of no less than ₦500 billion. This mandate is aimed at boosting their financial capacity to meet consumer demands and improve operational efficiency.
The resolution followed a motion sponsored by Ayokunle Isiaka, a lawmaker from Ogun State, during plenary on Tuesday. Isiaka highlighted numerous grievances against DisCos, including allegations of unjust charges for electricity meters and inadequate service delivery, which he said undermine consumer trust and economic stability.
“Nigerian consumers paid for meter installations, yet DisCos demand additional payments for replacements under dubious circumstances. This practice worsens the financial strain on households and businesses,” Isiaka noted.
Speaker of the House, Tajudeen Abbas, criticized DisCos for their perceived impunity and disregard for consumer rights despite ongoing regulatory oversight. He emphasized the need for recapitalisation, stressing that only financially capable operators should remain in the sector.
The Federal Ministry of Power has been tasked with addressing the alleged misconduct of DisCos, while the House Committee on Power will investigate their activities and advocate for consumer rights awareness.
Government Plans Sale of DisCo Stakes
Meanwhile, the Federal Government is advancing plans to sell 60% stakes in several DisCos due to their inability to repay debts and sustain operations. Notable acquisitions include Transcorp Plc’s purchase of Abuja DisCo, Future Energy’s acquisition of Kano DisCo, and ASI Engineering’s takeover of Kaduna DisCo.
The sale is expected to attract better-capitalized investors, with the Bureau of Public Enterprises (BPE) considering similar moves for DisCos in Port Harcourt, Benin, and Ibadan.
Power sector analyst Adetayo Adegbemle commended the decision, expressing hope that it would lead to improved services for consumers. The initiative underscores efforts to enhance power supply stability and drive economic growth.
