The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to compensate eligible Band A customers affected by power supply shortfalls recorded between February and March 2026.
In a public notice, NERC said the compensation scheme was introduced following significant generation constraints across the Nigerian Electricity Supply Industry (NESI), which prevented some DisCos from meeting the minimum service commitments required for Band A customers.
According to the commission, the shortfalls were largely caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors beyond the direct control of the distribution companies.
NERC explained that where Band A feeders recorded an average daily supply of between 18 and 20 hours, the existing compensation framework would apply to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
However, for feeders that received less than 18 hours of electricity daily during the affected period, customers will receive special compensation rather than having the feeders downgraded.
Under the arrangement, Non-MD customers will be credited with compensation equivalent to 20 per cent of the approved February 2026 energy cap for the affected feeder. MD customers will receive compensation equal to 20 per cent of the average energy billed per MD customer in February 2026.
The commission said prepaid customers would receive the compensation through electricity token credits, while postpaid customers would benefit through bill adjustments.
NERC also directed DisCos not to offset compensation credits against existing customer debts and mandated them to clearly inform beneficiaries of the value and period covered by the compensation.
The regulator reaffirmed its commitment to protecting electricity consumers while maintaining the stability and sustainability of the power sector, adding that it would closely monitor implementation to ensure all eligible customers receive their entitlements.