According to Punch Newspapers reporting, the Nigerian electricity distribution companies (DisCos) have flatly rejected a new mandate by the Nigerian Electricity Regulatory Commission (NERC). Under Order No. NERC/2026/062, DisCos are required to open dedicated capital expenditure (CapEx) accounts, a move the utility providers describe as an overreach into private administration.
The regulatory directive demands that DisCos remit between 35 and 70 percent of their residual revenues into these specific accounts, restricting usage exclusively to projects approved under their Performance Improvement Plans. Power firms have warned that this policy compromises their operational flexibility and will drive away crucial private investments.
In its validation of the dispute, Vanguard reported that the power companies claim “directing how private firms warehouse and spend their earnings crosses the line into management”. Likewise, BusinessDay noted that “restricting operational cash flow could severely impair the DisCos’ ability to respond to immediate distribution grid emergencies”.
Echotitbits take: NERC is trying to force DisCos to reinvest in upgrading their notoriously poor networks rather than diverting revenues to corporate overhead. However, micro-managing bank accounts of privatized companies risks creating legal battles that could stall ongoing grid improvements.
Source: The Guardian – https://guardian.ng/news/discos-protest-nercs-new-capex-revenue-directive/, July 14, 2026
Photo credit: Leadership
