The Nigerian Electricity Regulatory Commission (NERC) has tightened its oversight of electricity distribution companies (DisCos), directing them to channel more of their available revenue into network upgrades and other critical infrastructure.
The move is contained in a revised order issued by the commission on the utilisation of earned non-administrative operating expenditure (Non-Admin OpEx) by successor DisCos.
NERC said the revised framework is intended to accelerate investments in electricity distribution networks, improve service reliability and ensure that available funds are directed towards projects that can strengthen the power supply system.
The regulatory intervention comes amid continuing concerns over inefficiencies and financial challenges within Nigeria’s electricity distribution sector.
According to recent industry data, DisCos have continued to record significant technical, commercial and collection losses, putting pressure on their ability to provide reliable electricity to consumers.
NERC has consequently increased its scrutiny of the companies, with regulatory measures also extending to DisCos that fail to meet prescribed performance and market obligations.
The commission recently intervened in the affairs of Kaduna Electricity Distribution Company (KAEDC), after citing accumulated market liabilities exceeding ₦450 billion alongside other performance concerns.
Under the revised OpEx framework, NERC wants electricity distributors to ensure that funds generated within the regulated framework are used more effectively, particularly on investments capable of improving network performance.
The commission said the new order is expected to support critical infrastructure projects and improve the reliability of electricity supply across distribution networks.
The development places additional pressure on DisCos to demonstrate measurable improvements in service delivery while ensuring that revenues are not diverted away from essential network investments.
NERC is expected to continue monitoring compliance with the new framework as part of broader efforts to strengthen Nigeria’s electricity market and improve the quality of power supplied to consumers.
