The Nigerian Electricity Regulatory Commission has approved special compensation for eligible Band A electricity customers who were shortchanged by power supply shortfalls between February and March 2026. The directive, issued on Thursday, sets out how DisCos must repay affected customers and how soon the money has to reach them.
NERC said the move was necessary after significant generation shortages across the Nigerian Electricity Supply Industry left some Band A feeders unable to deliver the service levels customers had been promised. The shortages were largely tied to inadequate gas supply and the vandalism of critical gas and transmission infrastructure, problems the commission said were beyond the direct control of distribution companies.
The compensation framework is split by customer type and by the level of service a feeder received. Eligible Non-Maximum Demand customers will get 20 per cent of the approved February 2026 energy cap for their feeders. Maximum Demand customers will receive 20 per cent of the average energy billed per Maximum Demand customer in February 2026. Prepaid customers will receive token credits, while postpaid customers will see bill adjustments.
NERC also said Band A feeders that averaged between 18 and 20 hours of supply a day will remain under the existing compensation framework in Addendum No. NERC/2024/003 for both Maximum Demand and Non-Maximum Demand customers. Feeders that received less than 18 hours will not be downgraded during the covered period, even though they fell below the usual service level.
The commission barred distribution companies from offsetting any compensation against existing customer debts and told them to clearly inform customers of the value and period of compensation they receive. It also said it will keep monitoring implementation and verify compliance to make sure eligible customers are paid what they are owed.
February 2026 compensation must be completed by May 31, 2026, and March 2026 compensation must be implemented no later than June 30, 2026. What NERC has now done is turn a vague promise of service into a dated repayment schedule, but it still has not said how many customers or feeders will be covered.
