Electrocatalytic urea oxidation reaction (UOR) is a promising approach for urea-rich wastewater splitting, which benefits for reducing energy consumption in hydrogen production accompanying environmental protection and sustainable energy development. To address the limitations posed by the self-oxidation of nickel-based catalysts on the activity of UOR, we here developed a NiCo LDH nanosheet catalyst with abundant Ni vacancies to initiate the UOR process prior to nickel oxidation. Electrochemical impedance spectroscopy and In-situ spectroscopic characterizations confirm that the UOR process primarily occurs on the surface of the catalyst, rather than being driven by nickel oxidation products. The favorable electronic structure modulation induced by Ni vacancies makes the catalyst more energetically favorable for the UOR compared to nickel self-oxidation. The catalyst exhibits excellent UOR activity, only requiring 1.27 V vs. RHE at 10 mA cm−2 and 1.34 V vs. RHE at 100 mA cm−2, with no significant decay observed after over 120 h of operation. Furthermore, it can function as a bifunctional catalyst, requiring only 1.66 V to achieve 100 mA cm−2 for the UOR||HER system. This study expands the pathway for the application of cationic vacancies in UOR.