Electricity Sector In Shambles: Lawmakers Demand N500bn Overhaul For Power Firms

Electricity Sector In Shambles: Lawmakers Demand N500bn Overhaul For Power Firms

The House of Representatives has called for a N500 billion recapitalization of electricity distribution companies (DisCos) to strengthen their financial position and improve their ability to meet obligations to consumers..…..READ MORE 

The resolution followed the adoption of a motion titled “Need to Address the Activities of Distribution Companies in Nigeria,” which was sponsored by Ayokunle Isiaka, the representative for Ifo/Ewekoro Federal Constituency of Ogun State (APC), during plenary yesterday.

Isiaka expressed concerns that recent actions by the DisCos have posed a severe threat to Nigeria’s economic stability and the well-being of its citizens. He highlighted the issue of consumers paying for electricity meters, only for DisCos to demand additional payments for meter replacements under questionable circumstances.

“The House notes that Nigerian consumers have already paid for meter installations, yet DisCos continue to demand extra charges for replacements under dubious pretexts, damaging consumer trust and creating additional financial burdens,” said Isiaka. “This is forcing Nigerians, already struggling with economic challenges, to bear further costs for services they’ve already paid for.”

DisCos Accused of Sabotaging Economic Growth

The lawmaker also accused DisCos of sabotaging economic development by using essential services against the citizens, stifling growth and prosperity. Despite repeated regulatory oversight and calls for accountability, DisCos have continued to operate with impunity, disregarding consumer rights, Isiaka added.

Following the motion’s adoption, Speaker Tajudeen Abbas urged DisCos to undergo a recapitalization process of no less than N500 billion. He stressed that only financially capable companies, which can guarantee consumer satisfaction, should be permitted to continue operations.

The House also directed the Federal Ministry of Power to designate DisCos as non-state actors and take immediate steps to address what it described as reckless actions threatening the nation’s economic well-being. Furthermore, the committee on power was tasked with investigating DisCos’ activities and ensuring that consumer rights are upheld.

Government Considers Selling DisCos to Address Debt Crisis

In related news, the government’s inability to recover debts owed by DisCos has led to plans to sell off the state’s stake in these companies. Recent reports confirm that the Kaduna, Kano, and Abuja Electricity Distribution Companies have already been sold to private entities such as Transcorp Plc and Future Energy.

The Bureau of Public Enterprises (BPE) has not disclosed the exact indebtedness of the DisCos, but sources suggest that the outstanding debts total trillions of naira. This crisis has resulted in inconsistent power supply to households and businesses across the country.

Adetayo Adegbemle, Executive Director of PowerUp Nigeria, commented on the situation, stating, “It’s a good decision by the government, and I hope it leads to strengthened operations and better services for consumers.”

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