Thousands of Band A electricity customers across the country will receive compensation for service disruptions suffered between February and March 2026 following a directive issued by the Nigerian Electricity Regulatory Commission (NERC).
The commission in an Order No. NERC/2026/002, released on Thursday, announced the approval of a special compensation framework for eligible Band A customers affected by widespread generation constraints that prevented Distribution Companies (DisCos) from delivering the minimum service levels promised under the electricity tariff regime.
According to NERC, the generation shortfalls were largely caused by inadequate gas supply as well as vandalism of critical gas and transmission infrastructure, factors it said were beyond the direct control of the DisCos.
According to the Order, customers connected to Band A feeders that recorded less than 18 hours of average daily electricity supply during the affected period will receive special compensation without any downgrade of their feeder classification.
It stated that the compensation package provides that non-maximum demand (Non-MD) customers will receive credits equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeder.
NERC stated further that maximum demand (MD) customers will receive credits equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
The Commission said Band A feeders that delivered between 18 and 20 hours of average daily supply would continue to be treated under the existing compensation framework established in Addendum No. NERC/2024/003 for both MD and Non-MD customers.
The regulator directed that prepaid customers be compensated through electricity token credits, while postpaid customers would receive bill adjustments.
It also set deadlines for implementation, requiring DisCos to complete compensation for February 2026 by May 31, 2026, and for March 2026 by June 30, 2026.
To protect consumers, NERC prohibited DisCos from using compensation credits to offset outstanding customer debts and directed them to clearly communicate the value and period of compensation provided to beneficiaries.
The commission stated that the intervention was necessary to mitigate the impact of prolonged power generation shortages on customers who pay premium tariffs in exchange for improved power supply.
NERC reaffirmed its commitment to consumer protection and pledged to monitor compliance by electricity distribution companies to ensure all eligible customers receive the compensation due to them.
