The Nigerian Electricity Regulatory Commission has approved a special compensation plan for Band A electricity customers who experienced power supply shortages between February and March 2026.
The commission said the measure became necessary after electricity generation challenges prevented Distribution Companies from meeting the expected level of service to some Band A customers during the period under review.
According to NERC, the situation was caused mainly by inadequate gas supply and the vandalism of major gas and transmission facilities. The commission noted that these factors affected electricity generation and distribution across the country and were beyond the direct control of the Distribution Companies.
Under the approved arrangement, Band A feeders that maintained an average electricity supply of between 18 and 20 hours daily will continue to receive compensation under the existing regulatory framework already in place for both Maximum Demand and Non-Maximum Demand customers.
For Band A feeders that recorded less than 18 hours of electricity supply per day, NERC said they would not be downgraded during the affected period. Instead, eligible Non-Maximum Demand customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap for their feeders.
The commission also stated that eligible Maximum Demand customers will receive compensation equal to 20 percent of the average energy billed per customer in February 2026.
NERC explained that prepaid customers will receive the approved compensation through electricity token credits, while postpaid customers will benefit through adjustments made to their bills.
The commission directed Distribution Companies to complete compensation for February 2026 on or before May 31, 2026, while compensation for March 2026 must be concluded no later than June 30, 2026.
In addition, NERC instructed the electricity distribution firms not to use the compensation credits to settle any outstanding debts owed by customers. The companies were also directed to clearly inform affected customers about the value of the compensation and the period it covers.
The commission said it remains committed to protecting electricity consumers while maintaining stability within the power sector. It added that it would continue to monitor the implementation of the directive and ensure that all qualified customers receive the compensation due to them.