Government Directive: N500bn Capital Requirement for Discos Explained
The House of Representatives has proposed that only electricity distribution companies (DisCos) with a capital base of at least N500 billion should be allowed to continue operations.
This move aims to ensure that only financially robust DisCos are capable of providing reliable services and enhancing consumer satisfaction.
The resolution was passed in response to concerns about the actions of some DisCos, which have been seen as undermining consumer trust, including demanding additional payments for electricity meters that customers had already financed.
The lawmakers also expressed concerns about the financial strain these practices are placing on Nigerian households and businesses.
The House has called for immediate action by the Ministry of Power to regulate DisCos, ensuring that only those with sufficient capital, capable of meeting consumer needs, are allowed to continue their operations.
They have also tasked the House Committee on Power with investigating these companies to hold them accountable for their actions.