Slashes operational funding for utilities to 40% by 2027 Pegs debt-free DisCos’ CapEx accounts remittance at 60%Power distributors insist regulator micromanaging private entities
Emmanuel Addeh in AbujaDespite protests by Electricity Distribution Companies (DisCos), the Nigerian Electricity Regulatory Commission (NERC) has proceeded with a revised framework that will progressively restrict the amount of surplus operational revenue the utilities can deploy at their discretion.
Under the revised arrangement, debt-free DisCos will retain 50 per cent of their earned non-administrative Operating Expenditure (OpEx) for operational needs between August 2026 and January 2027, with the balance transferred into dedicated Capital Expenditure (CapEx) Provision Accounts.The new Order No: NERC/2026/062A, titled: “Revised Order on Successor Distribution Companies’ Utilisation of Earned Non Administrative Operating Expenditure”, dated September 4 effectively reviewed and replaced the earlier Order No: NERC/2026/062 issued by the commission on June 30, 2026. The document seen by THISDAY was signed by NERC’s Chairman, Musiliu Oseni and Vice Chair, Yusuf Ali.
Besides, it indicated that from February 2027 the operational share will fall to 40 per cent, with 60 per cent of the earned non-administrative OpEx required to be channelled into CapEx accounts for approved investments.However, the development has further raised opposition from some DisCos, which have argued that the commission is moving beyond regulation of performance and service standards into the financial and operational management of privately owned companies.
