On 28 March 2025, the Nigerian Electricity Regulatory Commission (NERC) issued the Order on the Delineation of Assets and Liabilities of Distribution Licensees (the Order), a landmark directive aimed at supporting the decentralisation of Nigeria’s electricity market under the Electricity Act 2023.
As States increasingly establish their own electricity markets and regulatory commissions, this Order provides a much-needed framework to guide the orderly, transparent, and equitable transfer of assets and liabilities from existing distribution companies (DisCos) to newly incorporated additional successor DisCos (SubCos).
Developed in collaboration with State Electricity Regulatory Commissions (SERCs) and other key stakeholders, the Order sets out a standardised methodology to ensure clarity, fairness, and regulatory alignment in this new phase of Nigeria’s power sector reform.
However, despite the anticipated benefits of the Order for NESI, certain critical issues remain unresolved. If not properly addressed at this stage, these gaps could give rise to conflicts in the future.
Read the full newsletter for a comprehensive analysis of what this means for your operations, financing structures, and strategic planning.
