NERC’s Revised Operating Expenditure Framework: Implications for Cash Flow, Investment and Compliance
On September 4, 2026, the Nigerian Electricity Regulatory Commission (NERC) issued a Revised Order reshaping how successor Electricity Distribution Companies (DisCos) may utilise their earned Non-Administrative Operating Expenditure. Effective from the August 2026 market cycle, the Order introduces a revised allocation framework that links the use of operating funds to outstanding market debts and progressively reserves a greater share of revenue for capital expenditure.








