Discos Outline Conditions For N500bn NASS Recapitalization Scheme

Discos Outline Conditions For N500bn NASS Recapitalization SchemeElectricity distribution companies (DisCos) have outlined their conditions for accepting the National Assembly’s proposed N500 billion recapitalization plan for each of the 11 DisCos nationwide. The move follows a resolution passed by the House of Representatives, which called for a N500 billion recapitalization of the DisCos to bolster their financial stability and enable them to meet their obligations to the public more effectively.....KINDLY READ THE FULL STORY HERE▶

The House of Representatives adopted the motion titled “Need to Address the Activities of Distribution Companies in Nigeria,” sponsored by Ayokunle Isiaka, the representative for Ifo/Ewekoro Federal Constituency in Ogun State. Isiaka expressed concern that the actions of the DisCos have been a significant threat to Nigeria’s economic stability and the welfare of its citizens.

One of the key points raised by Isiaka was the issue of double payments for electricity meters. He highlighted that although Nigerians have already paid for meter installations, many DisCos are demanding additional payments for meter replacements, often under questionable circumstances. He emphasized that such actions undermine consumer trust and place further financial strain on households and businesses already struggling economically.

“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,” Isiaka said. He also accused DisCos of “sabotaging economic development” by using essential services to exploit citizens, stifling the nation’s growth.

Despite ongoing regulatory oversight and numerous demands for accountability from the Committee on Power, DisCos have reportedly continued to operate with impunity, neglecting consumer rights.

In response to the motion, Speaker Tajudeen Abbas called for a mandatory recapitalization of at least N500 billion for the DisCos. He emphasized that only those companies with the financial capacity to meet consumer needs should be allowed to continue operating. The House further instructed the Federal Ministry of Power to treat DisCos as non-state actors and take immediate measures to address their actions, which are deemed reckless and detrimental to the national economy.

The House also directed its Committee on Power to investigate the operations of the DisCos to hold them accountable and protect consumer rights. The committee was tasked with launching awareness campaigns to educate consumers about their rights and examining how well the DisCos adhere to regulations that ensure transparency and fairness in their dealings.

Earlier, Minister of Power Adebayo Adelabu had suggested that recapitalizing the DisCos might be necessary to ensure sufficient resources for infrastructure development in the power sector. In a related development, Sunday Oduntan, Executive Director of Research and Advocacy at the Association of Nigerian Electricity Distributors (ANED), stated that the government should lead the recapitalization effort by contributing 40 percent of the N500 billion required for each Disco.

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