The Nigerian Electricity Regulatory Commission, NERC, has approved a special compensation package for eligible Band A electricity customers affected by poor power supply arising from generation constraints on the national grid between February and March 2026.
According to a public notice issued on its social media handles on Thursday, the commission said the directive was introduced following significant generation shortfalls across the Nigerian Electricity Supply Industry, which prevented electricity distribution companies from delivering the minimum service levels guaranteed to some Band A customers in the first quarter of the year.
NERC noted that it had issued Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints to address the situation.
The commission noted that the directive was introduced “in recognition of the significant generation shortfalls experienced across the Nigerian Electricity Supply Industry between February and March 2026, which affected the ability of distribution companies to meet the committed service levels for some Band A customers.”
The commission noted that factors beyond the control of electricity distribution companies largely caused the supply disruptions.
“The shortfalls were largely attributed to inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors beyond the direct operational control of the DisCos,” the commission stated.
Under the NERC directive, the compensation scheme covers the period from February 2026 to March 2026.
NERC stated that clients linked to Band A feeders, which logged an average daily supply of 18 to 20 hours during the timeframe, would keep receiving compensation under the current system.
It mentioned, “If a Band A feeder noted an average daily supply of between 18 and 20 hours, the current compensation structure under Addendum No. NERC/2024/003 will be applicable to both Maximum Demand and Non-Maximum Demand clientele.
The regulator also implemented specific compensation for Band A customers linked to feeders that experienced less than 18 hours of electricity supply each day during the impacted time.
As per the directive, impacted Band A feeders will remain at their current level during the designated timeframe.
It stated that qualifying clients would obtain compensation depending on their customer classification.
NERC stated that non-maximum demand customers would get “compensation equal to 20 percent of the sanctioned February 2026 energy cap relevant to the impacted feeder.”
Likewise, the commission indicated that maximum demand clients would obtain compensation equal to 20 percent of the average energy charged per MD client in February 2026.
The regulator clarified that prepaid clients would obtain compensation as token credits, whereas postpaid clients would get compensation via bill modifications.
NERC also instructed electricity distribution companies to finalize compensation for February 2026 by May 31, 2026, and to complete compensation for March 2026 by June 30, 2026.
The commission implemented steps to safeguard consumers and guarantee that beneficiaries obtain the complete worth of the compensation.
It stated that “distribution companies are prohibited from offsetting compensation credits against any existing customer debt,” adding that “customers must be clearly informed of the value and period of compensation received.”
Reiterating its dedication to consumer protection and market stability, NERC stated it continues to protect electricity consumers while promoting the sustainability and stability of the electricity market.
The commission stated that it will keep overseeing implementation and checking adherence by distribution companies to make sure all qualified customers obtain the compensation they are owed.
The DisCos amassed approximately N600bn from consumers in the first quarter of 2026, based on the most recent industry figures provided by the commission, despite ongoing difficulties in the power sector.
In the quarter, the Nigerian Independent System Operator released operational data highlighting the extent of the deficit, indicating that thermal power facilities need roughly 1,629.75 million standard cubic feet of gas daily for optimal performance, while actual supply as of February 23, 2026, was approximately 692.00 mmscf per day—signifying less than 43 percent of the necessary quantity.
With the reduction of gas supply in Q1, numerous power plants have ceased operations, while the Transmission Company of Nigeria implemented load shedding, distributing the scarce energy among the DisCos.
On their different channels, the distribution companies have consistently urged customers, linking the outages to shortages of gas.
