This research investigates the determinants of operational efficiency in electricity distribution companies (DISCOs) within the context of Nigeria, focusing on the influence of strategy formulation and resource allocation. A cross-sectional survey design was employed, targeting 400 staff members of the Abuja Electricity Distribution Company (AEDC), one of the major DISCOs in Nigeria. The study encompasses roles directly involved in or significantly influencing strategy formulation and resource allocation, including senior management, strategic planning, resource management, operations, financial analysis, and workforce management teams. Data collection was conducted with a robust emphasis on validation and reliability, ensuring the accuracy of measurements. The study utilized multiple regression analysis to examine the hypotheses concerning the impact of strategy formulation and resource allocation on the operational efficiency of AEDC. The findings reveal that while strategy formulation did not exhibit a significant influence on operational efficiency, resource allocation plays a pivotal role in enhancing operational performance. The study emphasizes the importance of gaining a more nuanced understanding of strategy formulation within the DISCO context and highlights the significance of distinctive capabilities, such as network management, customer relationship management, and innovation, in leveraging allocated resources for improved service quality.