Despite DisCos’ Protest, NERC Pushes Forward with New OpEx Spending Order

The Nigerian Electricity Regulatory Commission (NERC) has issued a revised order that will progressively limit the discretionary use of surplus operational revenue by Electricity Distribution Companies (DisCos). Under the new framework, debt-free DisCos will retain 50 percent of their earned non-administrative Operating Expenditure (OpEx) for operational needs between August 2026 and January 2027, with the remainder transferred to dedicated Capital Expenditure (CapEx) Provision Accounts. The order, numbered NERC/2026/062A, was issued on September 4 and replaces the previous directive, despite protests from DisCos who argue that the regulator is overstepping its mandate by micromanaging private entities.

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