Abuja Electricity Distribution Company (AEDC) says customers in Nigeria’s Federal Capital Territory and parts of Nasarawa, Niger, and Kogi will soon receive pay-outs for Band A electricity service interruptions, following a directive from the Nigerian Electricity Regulatory Commission (NERC). The move comes after NERC recorded that Band A customers experienced insufficient supply during February and March 2026, with compensation now tied to how many hours electricity was actually delivered.
Key takeaways
- AEDC says compensation is expected to reach Band A customers in the Federal Capital Territory and the states of Nasarawa, Niger, and Kogi.
- NERC linked the pay-outs to shortfalls recorded for Band A customers in February and March 2026.
- Customers eligible for compensation are those who received fewer than 18 hours of supply during the review periods.
- The compensation amount is set at 20% of the average energy billed for the customers in the affected months.
- Deadline guidance requires February 2026 compensation to be completed by 31 May 2026 and March 2026 compensation by 30 June 2026.
NERC order and AEDC’s compensation timeline
AEDC said the compensation will be paid to eligible Band A customers by eleven distribution companies, as instructed by NERC. The regulator’s directive follows an earlier finding that Band A customers recorded inadequate electricity supply during February and March 2026.
Under the arrangement, the pay-outs apply to customers who received less than 18 hours of electricity within the February and March 2026 periods. NERC also set implementation timelines for the payments: compensation for February 2026 is expected to be completed no later than 31 May 2026, while payments for March 2026 are required to be finished by 30 June 2026.
When asked for his response to the directive, AEDC’s Managing Director, Chijioke Okwuokenye, said the distribution company would begin compensating customers within its service area. He said the regulator’s order would be delivered to customers, describing power supply as an essential service and adding that the pay-outs would come “soon,” though he did not specify an exact date for when Band A customers would receive the compensation.
Okwuokenye’s comment did not include a precise start time for the pay-outs, but he reiterated that the issue concerns energy delivery and that the compensation would reach customers in the company’s franchise.
How the pay-out is calculated amid Nigeria’s power constraints
The compensation is calculated at 20% of the average energy amount billed to customers over the months under review. AEDC said the directive covers Band A customers who fell below the 18-hour threshold during the two-month period.
Beyond Abuja, the report noted that no other electricity distribution companies in Nigeria had publicly responded to the NERC directive at the time of publication. The issue is unfolding against a backdrop of persistent electricity shortages nationwide, with generation running at roughly 3,000 megawatts and 4,500 megawatts for a population estimated at more than 250 million.
Even as supply remains weak, distribution companies have continued to generate revenue from electricity sales. NERC data cited in the report showed that DisCos earned N597.55 billion from electricity customers in the first quarter of 2026.
The compensation framework also ties back to earlier tariff decisions. On 1 November 2020, NERC approved a 300% tariff increase for Band A customers on the basis that they would receive at least 20 hours of electricity supply each day—an expectation that NERC says was not met during the February and March 2026 period.
