Nigerian Electricity Regulatory Commission NERC has directed Distribution Companies to pay special compensation to eligible Band A customers who experienced below-standard power supply between February and March 2026, following widespread generation failures linked to gas supply disruptions and infrastructure attacks.

This was contained in the NERC order No. NERC/2026/002, mandating that DisCos make good on their service commitments to premium-tier customers who bore the brunt of significant generation shortfalls across the Nigerian Electricity Supply Industry NESI during the two-month period.

Band A customers, who pay higher tariffs in exchange for a guaranteed minimum of 20 hours of electricity daily, found themselves receiving far less power than promised. NERC attributed the shortfalls primarily to inadequate gas supply and the vandalism of critical gas and transmission infrastructure, circumstances it acknowledged were largely beyond the direct control of DisCos.

The compensation framework distinguishes between two tiers of impact. Feeders that managed to deliver between 18 and 20 hours of daily supply will fall under the existing compensation structure established by Addendum No. NERC/2024/003, covering both Maximum Demand MD and Non-Maximum Demand (Non-MD) customers.

Harder-hit feeders, that supplied less than 18 hours daily attract a more generous special compensation package. Non-MD customers on those feeders will receive credits equivalent to 20% of the approved February 2026 energy cap for their feeder, while MD customers will be compensated at 20% of the average energy billed per MD customer that same month. Crucially, NERC ruled that no affected Band A feeder will be downgraded during the covered period.

Prepaid meter holders will receive their compensation in the form of token credits loaded directly onto their meters, while postpaid customers will see adjustments reflected on their bills. NERC added a notable consumer protection provision: DisCos are expressly prohibited from using compensation credits to offset any outstanding customer debt, and customers must be clearly notified of both the value and the period covered by the compensation they receive.

DisCos have been given firm deadlines, compensation for February must be completed by May 31, 2026, while the March component must be settled no later than June 30, 2026.

NERC said it will actively monitor implementation and verify compliance across all Distribution Companies to ensure eligible customers are not shortchanged. The Commission framed the directive as part of its broader commitment to holding industry players accountable while maintaining confidence in the electricity market’s service-band framework.