Nigeria’s electricity regulator, the Nigerian Electricity Regulatory Commission (NERC), has directed electricity distribution companies (DisCos) to compensate eligible Band A customers affected by prolonged power supply shortfalls between February and March 2026.
According to a public notice issued by NERC and reported by TheCable, the compensation scheme was introduced after significant generation shortages across the Nigerian Electricity Supply Industry (NESI) prevented some DisCos from meeting the minimum service levels promised to Band A customers.
NERC attributed the supply disruptions largely to inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors it said were beyond the direct operational control of distribution companies.
Under the directive, Band A feeders that recorded an average daily electricity supply of between 18 and 20 hours will be compensated under the existing framework outlined in Addendum No. NERC/2024/003. The arrangement applies to both maximum demand (MD) and non-maximum demand (Non-MD) customers.
For Band A feeders that received less than 18 hours of electricity daily during the affected period, NERC said customers would not be downgraded to another tariff band. Instead, eligible consumers will receive special compensation.
The regulator stated that Non-MD customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeder. MD customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
NERC further directed that prepaid customers should receive the compensation through electricity token credits, while postpaid customers should benefit through bill adjustments.
The commission also prohibited DisCos from using compensation credits to offset outstanding customer debts. It instructed distribution companies to clearly communicate the value of the compensation and the period it covers to affected customers.
“NERC remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market,” the commission said.
The regulator added that it will continue monitoring implementation of the directive and verify compliance to ensure all eligible customers receive the compensation due to them.
