The Nigerian Electricity Regulatory Commission (NERC) has introduced a special compensation package for eligible Band A electricity customers who experienced reduced power supply between February and March 2026.
The decision comes after widespread generation constraints across the Nigerian Electricity Supply Industry (NESI), which affected the ability of Distribution Companies (DisCos) to deliver the service levels promised to some customers under the Band A classification.
According to NERC, the disruptions were primarily linked to challenges beyond the control of the DisCos, including inadequate gas supply and the vandalism of critical gas and transmission infrastructure. These issues contributed significantly to the decline in electricity generation during the period under review.
Under the new directive, Band A feeders that maintained an average daily power supply of between 18 and 20 hours will continue to receive compensation under the existing framework outlined in Addendum No. NERC/2024/003. This applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
For Band A feeders that recorded less than 18 hours of electricity supply per day, NERC stated that affected feeders will not be downgraded during the compensation period. Instead, eligible Non-MD customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap for their respective feeders. MD customers, on the other hand, will receive compensation equal to 20 percent of the average energy billed per MD customer in February 2026.
The commission explained that the compensation will be delivered differently depending on the customer’s billing structure. Prepaid customers will receive token credits, while postpaid customers will benefit through adjustments to their electricity bills.
To ensure timely implementation, NERC directed all DisCos to complete compensation for February 2026 no later than May 31, 2026. Compensation relating to March 2026 must be fully implemented on or before June 30, 2026.
The regulator also emphasized that compensation credits must not be used to offset existing customer debts. Distribution Companies have been instructed to clearly communicate the value of the compensation and the period it covers to all eligible customers.
NERC reiterated its commitment to safeguarding consumer interests while supporting the long-term stability of Nigeria’s electricity market. The commission further stated that it will closely monitor the implementation process and verify compliance to ensure that all qualified customers receive the compensation they are entitled to.
For affected Band A customers, the initiative provides some relief for service disruptions experienced during the two-month period and reinforces the regulator’s efforts to promote accountability within the power sector.
