The Nigerian Electricity Regulatory Commission (NERC) has approved compensation for Band A electricity customers affected by poor power supply between February and March 2026. The directive, issued as NERC/2026/002, follows generation shortfalls in the national grid that limited electricity distribution companies' ability to meet minimum service levels. NERC attributed the outages to inadequate gas supply and vandalism of gas and transmission infrastructure, factors outside the direct control of distribution companies. The compensation applies to Band A feeders that recorded less than 18 hours of daily supply during the period, with no downgrading of affected feeders for that timeframe. Customers on feeders with 18 to 20 hours of average daily supply will be compensated under the existing Addendum No. NERC/2024/003 framework. For those on feeders with less than 18 hours, non-maximum demand customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap for the affected feeder. Maximum demand customers will get 20 per cent of the average energy billed per MD customer in February 2026. Prepaid customers will receive token credits, while postpaid customers will see adjustments on their bills. Distribution companies must complete compensation for February 2026 by May 31, 2026, and for March 2026 by June 30, 2026. NERC barred DisCos from offsetting compensation against existing customer debts and required clear communication of compensation details to consumers. The commission said it will monitor implementation and ensure compliance. Data from the Nigerian Independent System Operator showed thermal plants received only 692.00 million standard cubic feet of gas per day as of February 23, 2026, against a required 1,629.75 mmscf. The PUNCH reported DisCos collected about N600bn from consumers in the first quarter of 2026.
NERC is compensating Band A customers for outages caused by gas shortages it has known about for years, yet the same infrastructure vulnerabilities persist. The N600bn collected by DisCos in the first quarter of 2026 came from consumers who paid for power they did not receive. Compensation does not fix the broken link between gas supply, generation and delivery. Customers are paying for a system that fails repeatedly while regulators respond only after revenue has been extracted.
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