The Nigerian Electricity Regulatory Commission (NERC) has issued a revised Order on the utilisation of earned Non-Administrative Operating Expenditure (Non-Admin OpEx) by successor electricity Distribution Companies (DisCos).

The order, which takes effect from September 4, 2026, is aimed at accelerating network upgrades, improving service reliability and ensuring that available revenues are invested in critical infrastructure projects.

It follows a regulatory review of DisCos’ revenue utilisation for the 2025 market cycle.

Under the revised Order, DisCos are required to establish and maintain dedicated Capital Expenditure (CapEx) Provision Accounts to fund approved network improvement projects.

A portion of earned Non-Admin OpEx will be earmarked for network rehabilitation, reinforcement and expansion, based on each DisCo’s debt profile.

NERC said debt-free DisCos would be required to remit 50 per cent of earned Non-Admin OpEx to their CapEx accounts from August 2026, increasing to 60 per cent from February 2027.

The Commission also directed that all projects funded through the CapEx Provision Account must receive NERC approval and be reported quarterly.

For DisCos owing the Nigerian Bulk Electricity Trading Plc (NBET) and the market operator, the order requires them to complete debt reconciliation and submit Commission-approved repayment plans within 180 days.