Consumers Back NERC 20% Electricity Shortfall Refund, Urge Action on Gas, Vandalism, Infrastructure

Consumers have welcomed the Nigerian Electricity Regulatory Commission’s (NERC) decision to grant a 20 per cent refund for recent power shortfalls, calling the move a long-overdue recognition of their losses.

While the refund has been praised as a necessary immediate relief, the consumers however urged for a swift, coordinated action to address the underlying causes — recurrent gas supply disruptions, widespread vandalism of transmission and distribution assets, and chronic infrastructure decay — warning that refunds alone will not end the cycle of outages that have battered households and businesses nationwide.
The national president of the Association of Small Business Owners of Nigeria (ASBON), Dr Femi Egbesola, while expressing support for the NERC order mandating a 20 per cent refund for affected Band A customers, described it as a constructive move toward strengthening consumer protection and accountability within the electricity supply industry.

He, however, cautioned that while the measure is welcome, it must not distract from the deeper structural issues undermining Nigeria’s power sector performance.

According to him, persistent challenges such as gas supply constraints, infrastructure vandalism, and inefficiencies across generation and transmission remain central to the country’s electricity crisis and must be addressed holistically.

“While this compensation is a welcome gesture, it’s important not to overlook the underlying structural challenges that contribute to power shortages. Issues such as gas supply constraints, infrastructure vandalism, and ongoing deficiencies in generation and transmission need to be addressed as part of a comprehensive strategy.

“Sustainable solutions should prioritise improving reliability and expanding capacity rather than depending on compensation as a recurring solution. Consumers are ultimately seeking a consistent, affordable, and high-quality electricity supply.”

Egbesola further stressed the need for coordinated action among key industry players, noting that lasting improvement in service delivery would depend on effective collaboration between regulators, power generation companies, distribution companies, gas suppliers, and other stakeholders.

“NERC’s action is a promising regulatory move, and it is essential that this is backed by stronger measures to ensure that DisCos, GenCos, gas suppliers, and other stakeholders work together to fulfill the commitment of delivering improved power services to Nigerians.”

Also speaking, the national chairman of the New Dimension Shareholders Association, Patrick Ajudua, said the directive represents a potentially significant step toward strengthening consumer rights and addressing long-standing grievances over poor service delivery by Distribution Companies (DisCos).

He noted that the introduction of a 20 per cent compensation for shortfalls recorded between February and March 2026 could set an important precedent for accountability in the sector.

“Historically, customers in Band A have faced high rates despite receiving less than 20 hours of power daily, with limited options for recourse. The introduction of a 20 per cent compensation for shortfalls occurring between February and March 2026 establishes a precedent for accountability in the sector.”

Ajudua, however, emphasized that the effectiveness of the policy will ultimately depend on strict and transparent enforcement by regulators, warning that implementation remains the real test of the reform.

Recall that NERC ordered electricity distribution companies to pay 20 per cent compensation to eligible Band A customers who were affected by power shortfalls between February and March 2026.

In Directive No. NERC/2026/002, the commission said generation constraints—largely caused by inadequate gas supply and vandalism of gas and transmission infrastructure—prevented DisCos from meeting committed service levels for some Band A feeders.

NERC 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 commission said that compensation for February must be completed by 31 May 2026, while compensation for March must be completed by 30 June 2026.