Di Nigerian Electricity Regulatory Commission, wey dem dey call NERC, don approve special compensation package for eligible Band A electricity customers wey suffer from power supply shortfalls between February and March 2026. Di problem na because generation no reach, wey make Distribution Companies no fit give di promised service level to some Band A customers.
According to NERC, di shortfalls na because of inadequate gas supply and vandalism of critical gas and transmission infrastructure. Dem say dis factors dey beyond di direct control of di DisCos. Di compensation scheme cover di period from February to March 2026.
For Band A feeders wey record average daily supply between 18 and 20 hours, dem go still dey compensated under di existing framework inside Addendum No. NERC/2024/003, for both Maximum Demand and Non-Maximum Demand customers. But for feeders wey get less than 18 hours of electricity supply, NERC say dem no go downgrade di affected feeders during di covered period.
Instead, eligible Non-MD customers go receive compensation wey equal 20 per cent of di approved February 2026 energy cap for dia feeders. MD customers go receive compensation wey equal 20 per cent of di average energy billed per MD customer for February 2026. Prepaid customers go get di compensation through token credits, while postpaid customers go benefit through bill adjustments.
NERC direct say compensation for February 2026 must finish by May 31, 2026, and for March 2026 by June 30, 2026. Dem also bar DisCos from offsetting compensation credits against any existing customer debts. DisCos must clearly tell customers di value and period of compensation wey dem receive.
Di commission reaffirm say dem dey committed to protecting electricity consumers while ensuring di stability and sustainability of di electricity market. Dem add say dem go continue to monitor implementation and verify compliance by DisCos to ensure all eligible customers receive dia compensation.
BusinessDay report say NERC order distribution companies to issue refunds to Band A customers after grid failures wey leave many without electricity for long periods. Di directive, NERC/2026/002, trigger special compensation for premium-tier subscribers wey dia feeder fall below 18 hours of daily supply between February and March 2026.
Di compensation na 20 per cent of affected customer’s approved energy cap or average monthly bill. E cover both maximum-demand industrial users and ordinary residential subscribers on di premium tier. Di provision wey attract sharp attention na di one wey say distribution companies no fit offset compensation credits against any existing customer debt. Dis na response to longstanding complaints say utilities dey absorb financial adjustment against accumulated arrears before customers see any benefit.
Band A customers dey occupy peculiar and contentious position for Nigeria’s electricity market. Di tier na to give customers wey pay higher tariffs access to feeders wey receive priority supply, at least 20 hours a day. But for practice, recurring generation shortfalls and infrastructure attacks don undermine dat promise, fueling frustration about two-speed system wey charge premium prices but deliver unreliable service.
Under di new directive, feeders wey average daily supply fall between 18 and 20 hours go dey processed under existing framework from Addendum No. NERC/2024/003. Di special compensation provisions apply only when supply drop below 18-hour floor. Notably, NERC say affected Band A feeders no go be downgraded during di covered period, wey spare customers from losing dia premium status on top of supply shortfalls.
Di mechanics of delivery split by customer type. Prepaid customers go receive compensation through token credits; postpaid through bill adjustments. NERC set firm deadlines: February payouts must complete by May 31, 2026, and March payouts by June 30. Di commission also serve notice say dem go hold utilities to account, saying dem go continue to monitor implementation and verify compliance to ensure all eligible customers receive dia compensation.
Di directive also require DisCos to keep customers informed throughout di process. Dem must ensure subscribers dey clearly informed of di value and period of compensation received. Dis transparency requirement, if enforced, go represent meaningful departure from di opacity wey historically surround billing disputes for Nigeria’s electricity market.
Nigeria’s power sector don face structural gas supply constraints for years, with pipeline vandalism periodically compounding chronic underinvestment in generation capacity. Analysts warn say without durable fix to di gas-to-power supply chain, Band A’s premium-service proposition go continue to face credibility problems regardless of how firmly di regulator police compensation on di distribution side.
