The House of Representatives has proposed that electricity distribution companies (DisCos) must have a minimum capital base of N500 billion to operate in Nigeria, citing the need to ensure better service delivery and consumer satisfaction.
The resolution was adopted during Wednesday’s plenary session after a motion was moved by Ibrahim Isiaka, a lawmaker from Ogun State. Isiaka expressed concerns over the inefficiency of DisCos, stating that their actions threaten Nigeria’s economic stability and strain consumers financially.
Isiaka highlighted issues such as consumers being forced to pay for electricity meters, which they had already financed, under dubious pretenses. He argued that this practice has eroded public trust and increased financial burdens on households and businesses facing economic challenges.
“DisCos continue to operate with impunity, disregarding consumer rights despite regulatory oversight and accountability demands from the Committee on Power,” Isiaka noted.
The House unanimously passed the motion, urging the Federal Ministry of Power to classify DisCos as non-state actors and take immediate measures to address their alleged misconduct. It also recommended the recapitalization of DisCos, stipulating a minimum capital base of N500 billion to ensure only financially capable operators remain in the sector.
Additionally, the lawmakers mandated the House Committee on Power to investigate DisCos’ activities, hold them accountable, and protect consumer rights.
This development comes amidst growing dissatisfaction with the performance of DisCos, whose inefficiencies have been criticized for hampering economic growth and burdening citizens.
