The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers who experienced power supply disruptions due to generation constraints between February and March 2026. In a public notice issued on Thursday, the regulator said the intervention was necessitated by significant generation shortages within the Nigerian Electricity Supply Industry (NESI), which prevented Distribution Companies (DisCos) from meeting the committed service levels for some Band A customers.
According to the commission, the supply challenges stemmed mainly from inadequate gas supply and the vandalism of key gas and transmission infrastructure, circumstances it noted were beyond the direct control of the DisCos.
NERC stated that the compensation programme covers the period from February to March 2026.
Under the directive, Band A feeders that maintained an average daily electricity supply of between 18 and 20 hours will continue to receive compensation under the existing framework outlined in Addendum No. NERC/2024/003 for both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
For Band A feeders that recorded less than 18 hours of daily supply, the commission said the affected feeders would not be downgraded during the period under review. Instead, eligible non-MD customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeders, while MD customers will be compensated with 20 per cent of the average energy billed per MD customer in February 2026.
The regulator further explained that prepaid customers would receive compensation through token credits, while postpaid customers would benefit through bill adjustments.
NERC directed DisCos to complete compensation payments for February 2026 by May 31, 2026, and ensure that compensation for March 2026 is implemented no later than June 30, 2026.
The commission also prohibited DisCos from deducting compensation credits to settle existing customer debts and instructed them to clearly communicate the value and period of compensation to beneficiaries.
Reaffirming its commitment to consumer protection and the sustainability of the power sector, the commission said it would continue to oversee the implementation of the directive and verify compliance by DisCos to ensure that all eligible customers receive the compensation due to them.
The commission stated that it "would continue to monitor implementation and verify compliance by DisCos to ensure all eligible customers receive the compensation due to them."
