The House of Representatives has waded into the issue of exploitative practices meted out to consumers by the Nigerian electricity Distribution Companies (DisCos), which has lingered unabated for a long despite the oversight of the Nigerian Electricity Regulatory Commission (NERC).

A motion seeking to compel the Distribution Companies (DisCos) to discontinue the extortive practice of estimated/arbitrary billing with immediate effect was introduced by Rep. Afuape Moruf at plenary on Tuesday.

Unanimously adopting the motion, the legislators reached a resolution mandating the electricity distribution companies to face reprimands due to their dismal provision of services to Nigerian electricity consumers.

Moruf had earlier in the motion noted that the Electricity Act of 2023 outlines a comprehensive and institutional framework governing the operations of a privatized, contract-based, and rule-bound electricity market. He asserted that this framework applies to all participants in the Nigerian Electricity Supply Industry (NESI).

He said the role of the NERC as the regulator of NESI, includes ensuring an adequate supply of electricity to consumers. Additionally, NERC is tasked with ensuring that the prices charged by Electricity Distribution Companies (Discos) are fair to consumers, while also allowing sufficient finances for the Discos’ activities and enabling them to make reasonable profits for efficient operations.

The lawmaker further explained that the Electric Power Sector Reform Act of 2005 established 11 Electricity Distribution Companies (Discos) with the specific responsibility of supplying electricity to consumers within their respective operational areas. These companies are also obligated to provide power transmission facilities and other ancillary services to ensure the reliability and support of electricity transmission from generation sites to consumers.

“Concerned that the distribution companies raked in a whopping N247.33 billion in the first quarter of 2023 as against N232.32 billion generated in the fourth quarter of 2022, representing a rise by 20.81 percent compared to N204.74 billion generated first Quarter of 2022 (year-on-year consideration)

“Whereas, electricity supply declined from 5,956 (Gwh) in the first Quarter of 2022 to 5,852 (Gwh) first Quarter of 2023 (year-on-year consideration), despite the increase in earnings.

“Concerned that the distribution companies have demonstrated unfaithfulness toward the social contract with Nigerians, as enshrined and enhanced by the transitional effect of the Electric Power Reform Act, 2005 to the Electricity Act, 2023, having been inefficient in their services.

“They have condemnable attitudes towards expected investments, abdicating their statutory responsibilities for communities, private and other public entities, despite their humongous earnings, as extracted from the Q1 2023 report of the National Bureau of Statistics on a performance review of the 11 distribution companies,” he said.

Moruf expressed concern about NERC’s apparent inaction as communities, individuals, and corporate organizations took on the responsibility of providing electricity transmission facilities such as meters, cables, and transformers in areas where they were either unavailable or in need of repair.

Consequently, the House called upon NERC to establish a robust metering plan that ensures consumers are billed fairly. The lawmaker demanded that NERC use the relevant provisions of the law and existing agreements to penalize DisCos that exploit and abuse the rights of consumers.

The House also directed NERC to collaborate with distribution companies to develop a methodology for compensating communities, individuals, and other private and public entities for their investments in the distribution network.

In conclusion, the Speaker, Rep. Tajudeen Abbas, instructed the Committee on Power (when constituted) to engage with NERC and distribution companies (DisCos) to address and resolve any obstacles hindering the delivery of excellent services to Nigerians.

Earlier this month, NERC said outrageous billings, service interruptions, and illegal disconnections dominated the list of over 3.25 million complaints made by consumers to DisCos within five years. This has gone on for years with little intervention from the regulator, leaving consumers at the mercy of electricity companies.

Nigerian consumers largely bear the burden of electricity infrastructure, providing for themselves meters, transformers, poles, wires, and related equipment needed for electricity supply, which according to section 68 (9) of the new Electricity Act, 2023, is the responsibility of power companies.

The Central Bank of Nigeria (CBN) has issued an instruction to banks to remove the post-no-debit restriction from the bank accounts of 440 individuals and companies. Among these entities are fintech companies such as Bamboo and Risevest, as well as a sports betting company called Nairabet.

The directive was conveyed through a circular signed by A.M. Barau, the Director of Banking Supervision at the apex bank, and was sent to all banks. The banks are now required to notify all the affected customers, both individuals and companies, about this decision.

It could be recalled that in August 2021, the CBN secured a court order to freeze accounts belonging to individuals as well as companies including Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited for 180 days.

According to the court document, the financial regulator was investigating ‘illegal foreign exchange transactions’ by the affected companies, which were weakening the naira. The companies were accused of carrying out forex operations to the detriment of the naira, which had been on a free-fall due to economic strains.

On the other hand, the accounts of the 440 individuals were blocked on the allegation that they were used to carry out cryptocurrency transactions and other forex operations that the central bank said were sabotaging the naira’s stability.

“That more specifically, there is a grave allegation that the defendants/respondents are engaged in illegal foreign exchange transactions, accessing/procuring of foreign exchange via their banks from the Nigerian foreign exchange market via several bureau de change, international money transfer operators and have transferred cash deposit of more than S10,000.00 (Ten thousand dollars) to various accounts overseas contrary to provisions of extant laws and regulations and also traded in foreign securities and cryptocurrencies in contravention to CBN Circular referenced TED/FEM/FPC/GEN/01/012 and BSD/DIR/PUB/LAB/014/001, dated February 5, 2021, and July 01, 2015.

“It is evident that Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited and Trove Technologies Limited are complicit in operating without a license as asset management companies and utilizing FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of CBN’s directive,” the CBN said.

However, the apex bank refused to lift the restriction after the expiration of the court order, stymieing business for the companies. Chaka, Bamboo, and Risevest were asset management firms, helping Nigerians to trade in foreign stocks. Chaka had recently secured a license from Nigeria’s Securities and Exchange Commission (SEC) at the time.

CBN’s decision to lift the post-no-debit restriction on those accounts came weeks after Godwin Emefiele, who was the apex bank governor when the order was secured, was suspended and arrested.

The instruction to the banks as seen on the circular reads: “You are hereby directed to vacate the Post-No-Debit restriction placed on the accounts of the under-listed bank customers at our instance. You are also required to inform the concerned customers of the vacation accordingly.”