The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for Band A electricity customers who experienced poor supply between February and March 2026 due to generation shortfalls on the national grid.
In a directive issued Thursday, NERC acknowledged that inadequate gas supply and vandalism of critical infrastructure disrupted electricity generation, preventing distribution companies (DisCos) from meeting the guaranteed service levels for some Band A customers.
Band A feeders with 18–20 hours of daily supply will continue to receive compensation under the existing framework.
Feeders that recorded less than 18 hours daily supply during the affected period will receive special compensation.
Non-maximum demand customers will get credits equivalent to 20% of the approved February 2026 energy cap.
Maximum demand customers will receive 20% of the average energy billed in February 2026.
Prepaid customers will be compensated with token credits, while postpaid customers will get bill adjustments.
NERC directed DisCos to complete compensation for February by May 31, 2026, and for March by June 30, 2026.
Importantly, DisCos are prohibited from offsetting compensation against existing customer debts, and customers must be clearly informed of the value and period of compensation received.
Sector ChallengesIndustry data shows DisCos collected about ₦600 billion from consumers in Q1 2026 despite persistent outages.
The Nigerian Independent System Operator reported that thermal plants require 1,629.75 million standard cubic feet of gas daily to operate optimally, but supply fell to just 692 mmscf per day in February, less than 43% of the required volume.
This shortfall forced several plants to shut down, while the Transmission Company of Nigeria resorted to load shedding. DisCos have repeatedly blamed outages on gas shortages, though some Nigerians report recent improvements in supply.
NERC reaffirmed its commitment to protecting consumers and ensuring market stability, pledging to monitor implementation and verify compliance so that all eligible customers receive their due compensation.
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