Reps Mandate N500bn Recapitalization for DisCos, Push for Power Sector Overhaul
The Nigerian House of Representatives has called for a major overhaul of the power sector, requiring electricity distribution companies (DisCos) to raise N500 billion in recapitalization.
This move is aimed at improving the financial health of these companies, ensuring they can meet their responsibilities and better serve the public.
The call for reform came after Rep. Ayokunle Isiaka raised concerns over the practices of DisCos, particularly their demands for additional payments from consumers for meter replacements despite previous payments.
Isiaka warned that such actions were undermining public trust and putting a financial strain on consumers.
Speaker Tajudeen Abbas emphasized that only those DisCos with sufficient financial backing should remain operational. He urged the Federal Ministry of Power to address the actions of these companies and hold them accountable for their role in stifling economic development.
The House has directed further investigations into the activities of DisCos, as well as the implementation of awareness campaigns to educate consumers about their rights.
This move aligns with expert calls for significant capital investment, with some suggesting that the industry requires as much as N2 trillion to function effectively.
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