KEY POINTS
- DisCos ask for N500bn recapitalisation to boost efficiency, service delivery – Reps.
- It tasks Federal Ministry of Power to bring DisCos to book over their recklessness.
- Privatization of DisCos is on going and is seen as the way to resolve operational inefficiencies.
All DisCos have been asked to recapitalise with a minimum of N500 billion to enhance their financial stability and also perform better in the provision of services to consumers, the House of Representatives has said.
On Tuesday, it was adopted during a plenary session after a motion. “Need to Address the Activities of Distribution Companies in Nigeria. Debated and moved by Ayokunle Isiaka from the Ifo/Ewekoro Federal Constituency of Ogun State.
Consumer trust eroded
DisCos operations were under fire according to Isiaka, especially the continued bills being slapped on consumers. “Nigerians pay for electricity meters but DisCos are asking Nigerians for additional money to replace their stolen or damaged equipment that they paid for already, on doubtful basis,” he stated.
Said the lawmaker, such practices erode consumers’ trust and also aggravate households and businesses’ financial problems.
Economic development than sabotage
I also retract for the DisCos for debilitating economic growth through inefficiency and lack of regard for regulatory issue. He said essential services are being weaponized against citizens, hindering their economic progress.
DisCos were underreporting revenues and collecting tariffs manually out of the stated N5,369,062 million.
Speaker Tajudeen Abbas further elucidated, ordering them to carry out a recapitalisation and meet the financial requirements to satisfy customer expectations.
He said only operators that are capable of providing maximum level of satisfaction should be allowed to continue.
Stronger oversight measures
In its reaction to the motion, the House directed that the Federal Ministry of Power should list DisCos as non state actors and immediately tackle their ‘reckless actions’.
The Committee on Power has also been mandated to:
1. Enforce accountability on the activities of the DisCos.
2. How about they carry out consumer rights awareness campaigns?
3. The implementation of strict regulations to ensure transparency and fairness.
Privatization and Recapitalisation
Following the government’s decision to sell its 60 percent stake in some DisCos owing to their inability to manage debt and run operations. Private investors have already acquired Abaji, Kano and Kaduna DisCos, with Port Harcourt, Benin and Ibadan DisCos set to be sold.
Stakeholder reactions
“Most importantly, I think it’s a positive step toward improved service delivery and accountability in the power sector,” said Adetayo Adegbemle, Executive Director of PowerUp Nigeria.
