House of Representatives Calls for Overhaul of Nigeria’s Electricity Distribution Companies

  • The House of Representatives has called for an N500 billion re-capitalization of Nigeria’s DISCOs to ensure that only financially viable companies operate and provide reliable services.
  • Lawmakers have mandated the Committee on Power to investigate DISCOs’ practices following complaints of consumers being forced to pay for meter replacements they had already financed.

The House of Representatives has called for a comprehensive overhaul of Nigeria’s electricity distribution companies (DISCOs). It has proposed a N500 billion re-capitalization to ensure that only financially capable companies can operate and deliver satisfactory consumer services.

The House has also mandated its Committee on Power to investigate DISCOs’ activities, aiming to hold them accountable and safeguard consumers’ rights. Additionally, the parliament has urged the Federal Ministry of Power to take urgent action to address the issues with DISCOs, which are seen as a threat to Nigeria’s economy, and to educate consumers about their rights and how to raise complaints effectively.

These resolutions were adopted following a motion by Ibrahim Isiaka on the need to address the operations of DISCOs in Nigeria. During his motion, Isiaka highlighted concerns that many DISCOs are pressuring consumers to pay for the replacement of meters under what he called “dubious pretences” despite consumers having already paid to install these meters.

Isiaka warned that these actions financially strain households and businesses, particularly during economic hardship, and may destabilise the country’s economy. He also criticised the DISCOs for continuing to operate with impunity despite ongoing regulatory oversight and calls for accountability from the Committee on Power.

The lawmaker urged the House to oppose the alleged injustices faced by electricity consumers, emphasising the need to protect Nigerians’ rights and welfare in the face of these challenges.

In addition to the call for re-capitalization, the House also emphasised the importance of transparency and consumer protection in the electricity sector. Lawmakers stressed the need for the Federal Ministry of Power to take swift action against DISCOs that violate consumer rights and ensure that electricity users are adequately informed about their rights and how to address grievances. This move is seen as a step toward addressing long-standing issues in Nigeria’s power sector and improving service delivery to consumers nationwide.

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