*Electricity consumers welcome the latest directive of the Nigerian Electricity Regulatory Commission on payment of 20 percent special compensation to eligible Band A customers, stating the consumer protection measure will boost public confidence in the power sector of the country’s economy
Isola Moses | ConsumerConnect
Scores of electricity consumers in parts of the Federal Capital Territory (FCT), have commended the Nigerian Electricity Regulatory Commission (NERC) for its latest directive to power providers to pay 20 percent special compensation to Band A customers across the West African country.
ConsumerConnect reports the NERC recently directed the electricity Distribution Companies (DisCos) to pay 20 percent compensation to eligible Band A customers, who were affected by power shortfalls resulting from reported grid generation constraints between February and March 2026.
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The power sector regulator, in the directive No. NERC/2026/002, said generation constraints, which were largely caused by inadequate gas supply and vandalism of gas and transmission infrastructure, had prevented DisCos from meeting committed service levels for some Band A feeders.
Following the directive to the DisCos, consumers who reside in Lokogoma Area 1, Lugbe and Apo resettlement Area of the FCT Sunday, June 14, 2026, spoke to the News Agency of Nigeria, in Abuja.
The power consumers said that the directive was a welcome development as it would boost public confidence in the power sector of the Nigerian economy.
pay special compensation for Band A customers arising from grid generation constraints between February and March this year.
Compensation will boost consumers’ confidence in power sector
Welcoming the regulatory directive on special compensation, Mrs. Cynthia Okosun, residing, in Lokogoma area of the FCT, said that she was happy with the development, adding that with this compensation consumers’ confidence had been restored in the sector.
Okosun related that electricity consumers on Band A are made to pay huge amounts of money, so the compensation is necessary, agency report said.
She also noted: “They promised us between 20and 24 hours of power supply but sometimes we don’t get up to 10 hours.
“We are happy with this development as it will restore confidence in the sector, especially for Band A customers.”
Mr. Jimoh Ibrahim, also a power consumer residing in Logokoma, said that the directive was a welcome development for the Band A customers, and indeed, all electricity consumers.
Ibrahim said that such development was good for customers, commending NERC for the directive.
He stated: “This is a very good development for us on Band A and I commend NERC for taking this step so that we get value for our money.”
Another electricity consumer, Mr. Thomas Okosun, who resides in Lugbe area of Abuja lauded NERC for the directive on special compensation to affected consumers.
Okosun reportedly said that NERC directing that compensation should be paid to Band A customers would make life easier for customers on Band A.
The consumer, therefore, appealed to the power sector regulator to ensure that there is steady power supply across the West African country.
Mrs. Mary Okosodo, residing in Lugbe also, hailed NERC for the directive to pay compensation to the electricity customers.
She, however, noted that the Federal Government should do everything possible to improve electricity supply so citizens could get value for their money.
There is the need for improved infrastructure to ensure steady power supply, she said.
Okosodo averred: “I am happy with the directive to pay compensation to the affected customers, however, government should put infrastructure in place to avoid frequent grid generation constraints.”
Mr. Augustine Eromosele, resident in Apo resettlement said that the compensation was good but added that government should put the right infrastructure in place to avoid the frequent grid collapses.
He said: “Paying compensation to those on Band A is good but what is important is ensuring the right infrastructure is in place to avoid future occurrence.
On 20 percent compensation directive for Band A electricity consumers
Earlier, the NERC, in its directive, disclosed the directive No. NERC/2026/002 was introduced in recognition of the significant generation shortfalls experienced across the Nigerian Electricity Supply Industry (NESI) in the ecosystem.
The Commission as well explained the shortfalls affected the ability of Electricity Distribution Companies to meet the committed service levels for some Band A customers.
NERC also mandated that for feeders that supplied less than 18 hours per day, affected Band A feeders will not be downgraded during the covered period, and eligible customers will receive special compensation equal to 20 per cent of approved energy figures for February 2026.
The power sector regulator, nonetheless, cautioned that for Band A feeders that recorded an average daily supply of between 18 and 20 hours, the existing compensation framework under Addendum No. NERC/2024/003 applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) electricity consumers.
According to NERC, MD customers are high-end consumers, who typically have their own dedicated transformers and operate with a load of 45 kVA and above.
It noted such consumers include large residential estates, banks, hotels, supermarkets, industrial facilities and oil and gas complexes in Nigeria.
Whereas non-MD customers do not have a dedicated transformer, and instead share public transformers, and they generally consume less, often below 45–50 kVA, stated NERC.
The regulator further explained that for Non-MD customers, compensation is set at 20 percent of the approved February 2026 energy cap applicable to the affected feeder.
For MD customers, compensation is 20 percent of the average energy billed per MD customer in February 2026.
It stated that prepaid electricity consumers, therefore, would receive their compensation as token credits, while postpaid customers would receive bill adjustments.
Deadline for special compensation to affected consumers
The Commission said that compensation for February must be completed by 31 May, 2026, while compensation for March must be completed by 30 June, 2026.
NERC equally barred Distribution Companies from using the compensation credits to offset any existing customer debt.
It said electricity consumers must be clearly informed of the value and period of the compensation they receive in this regard.
The power regulator assured that it would monitor implementation, and verify compliance in order to ensure that all eligible electricity consumers receive what is due to them.
The Commission restated its commitment to protecting electricity consumers while ensuring the stability, sustainability of the electricity market in Nigeria.