The Nigerian Electricity Regulatory Commission (NERC) has introduced a special compensation package for Band A electricity customers who experienced power supply shortfalls due to grid generation constraints during February and March 2026. The announcement was made in a public notice on Thursday, citing significant generation deficits across the Nigerian Electricity Supply Industry (NESI) that prevented Distribution Companies (DisCos) from meeting their committed service levels to some Band A customers.
According to NERC, these shortfalls stemmed largely from inadequate gas supply and vandalism of critical gas and transmission infrastructure—factors beyond the control of DisCos. The compensation covers the two-month period and applies to eligible customers on feeders that underperformed.
For Band A feeders that delivered an average of 18 to 20 hours of daily supply, existing compensation rules under Addendum No. NERC/2024/003 will apply for both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers. However, feeders that supplied less than 18 hours will not be downgraded; instead, Non-MD customers will receive compensation equal to 20% of the approved February 2026 energy cap for their feeder, while MD customers will get 20% of the average energy billed per MD customer in February 2026.
Prepaid customers will receive their compensation as token credits, while postpaid customers will see adjustments on their bills. NERC has mandated that compensation for February 2026 be completed by May 31, 2026, and for March 2026 by June 30, 2026. The commission also prohibited DisCos from using compensation credits to offset any existing customer debts and required them to clearly inform customers of the amount and period of compensation.
NERC reiterated its commitment to protecting electricity consumers and ensuring market stability. It will continue to monitor implementation and verify compliance to guarantee that all eligible customers receive their due compensation.