The Nigerian Electricity Regulatory Commission has approved a special compensation package for eligible Band A electricity customers affected by power supply shortfalls caused by grid generation constraints between February and March 2026.

In a public notice issued on Thursday, the commission said the directive became necessary following significant generation shortages across the Nigerian Electricity Supply Industry, which prevented Distribution Companies from delivering the agreed service levels to some Band A customers.

According to the Nigerian Electricity Regulatory Commission, the shortfalls were largely caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors which were beyond the direct control of the Distribution Companies.

The commission stated that the compensation scheme applies to the period covering February to March 2026.

Under the directive, Band A feeders that recorded an average daily electricity supply of between 18 and 20 hours will continue to receive compensation under the existing framework for both Maximum Demand and Non-Maximum Demand customers.

For Band A feeders that received less than 18 hours of electricity supply, the commission stated that such feeders would not be downgraded during the affected period. Instead, eligible Non-Maximum Demand customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeders, while Maximum Demand customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.

The commission explained that prepaid customers will receive the compensation in the form of token credits, while postpaid customers will benefit through adjustments on their electricity bills.

NERC directed that compensation for February 2026 must be completed by May 31, 2026, while compensation for March 2026 must be implemented no later than June 30, 2026.

It further stated that Distribution Companies are not allowed to offset compensation credits against any existing customer debts and must clearly communicate to customers the value and period of compensation they receive.

The commission reaffirmed its commitment to protecting electricity consumers while ensuring the stability and sustainability of the electricity market. It added that it would continue to monitor implementation and verify compliance by Distribution Companies to ensure that all eligible customers receive their due compensation.