The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers who experienced service disruptions due to power supply shortfalls between February and March 2026.
In a public notice issued on Thursday, the commission said the decision followed significant generation constraints within the Nigerian Electricity Supply Industry (NESI), which prevented Distribution Companies (DisCos) from meeting their committed service levels to some Band A customers.
According to NERC, the supply challenges were largely driven by inadequate gas supply and the vandalism of key gas and transmission infrastructure, factors it noted were beyond the direct control of the DisCos.
The compensation arrangement applies specifically to electricity supply shortfalls recorded during February and 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 electricity supply, NERC stated that 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 for their respective feeders, while MD customers will receive compensation equal to 20 per cent of the average energy billed per MD customer in February 2026.
The commission explained that prepaid customers will receive compensation through energy token credits, while postpaid customers will benefit through adjustments to their electricity bills.
NERC further directed that compensation for February 2026 must be completed by May 31, 2026, while compensation for March 2026 should be fully implemented on or before June 30, 2026.
The regulator also prohibited DisCos from using the compensation credits to offset existing customer debts and instructed them to clearly communicate the value and period of the compensation provided to beneficiaries.
Reaffirming its commitment to consumer protection, NERC said it remains focused on safeguarding electricity customers while maintaining the stability and sustainability of Nigeria’s power sector.
The commission added that it will continue to monitor implementation closely and verify compliance by DisCos to ensure all eligible customers receive the compensation due to them.
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