The Nigerian Electricity Regulatory Commission (NERC) has introduced comprehensive safety reforms requiring electricity companies to pay at least N15 million in compensation for deaths caused by electrical accidents. This marks one of the toughest regulatory actions in Nigeria's power sector.
New Compensation Framework for Victims
The revised Health and Safety Code for the Nigerian Electricity Supply Industry (NESI) mandates that families of victims who die from electrical accidents receive a minimum of N15 million. The same amount applies to victims suffering permanent disabilities exceeding 60 percent. Those with disabilities between 40 and 60 percent are entitled to N7.5 million.
For accident victims requiring medical treatment, those hospitalized for more than one week will receive N750,000, while those hospitalized for less than a week will receive N250,000. Electricity companies must also cover full medical costs.
Protection for Contract Workers and Livestock Owners
NERC has extended insurance and compensation benefits to contractors, vendors, and third-party personnel engaged by licensees, ensuring they receive the same protection as permanent employees. Additionally, owners of livestock killed in electrical accidents will receive compensation ranging from N85,000 to N600,000, depending on the animal type.
Strict Deadlines and Penalties
All compensation claims must be settled within six months of an accident. Companies that fail to meet this deadline face an additional penalty of five percent of the compensation amount for every month of delay.
NERC Chairman Musiliu Oseni stated that the revised code aligns with the Electricity Act 2023 and international safety standards. He noted that an industry-wide committee comprising representatives from generation, transmission, and distribution segments developed the new framework.
Penalties for Safety Violations
Electricity companies must establish formal occupational health and safety systems, conduct regular risk assessments, maintain emergency response plans, and provide annual medical examinations for workers. Major incidents must be reported within 24 hours, with detailed investigation reports submitted within three weeks.
Companies whose negligence or safety violations lead to deaths, injuries, or property destruction could face sanctions of up to N20 million, in addition to compensation obligations.
The reforms are widely seen as a landmark shift in Nigeria's electricity sector, placing greater responsibility on power companies and offering stronger protection to millions of Nigerians exposed to risks from electrical infrastructure.
