The Federal Government has issued a stern warning to power-generating companies (GenCos), threatening to disconnect them from the national grid if they fail to activate Free Governor Control (FGC) on all generating units. This move aims to prevent recurring system collapses and enhance grid stability.
The Nigerian Electricity Regulatory Commission (NERC) issued the directive in Order NERC/2025/094, signed on August 26 by Vice-Chairman Musiliu Oseni and Commissioner for Legal, Licensing & Compliance, Dafe Akpeneye. The order, effective from September 1, 2025, requires GenCos to comply with FGC standards or face penalties.
FGC is a turbine governor control system that enables power plants to automatically adjust output based on grid frequency fluctuations, ensuring balance between supply and demand and preventing widespread outages.
According to the new regulations, any GenCo failing to implement FGC by November 30, 2025, will incur a daily fine of 10% of the invoice related to the non-compliant generating unit. Units remaining non-compliant for 90 consecutive days will be disconnected from the grid until certified compliant by the Nigerian Independent System Operator (NISO).
The measures follow eight grid disturbances in 2024—including five full collapses and three partial outages—linked to widespread FGC non-compliance, according to investigations by the Transmission Company of Nigeria.
To enforce compliance, NERC has mandated all grid-connected power plants to install and operate fast-acting governor systems in real time. GenCos must also acquire Grade Level 5 IoT-enabled meters capable of monitoring key metrics such as active and reactive power, voltage, frequency, and power factor. These meters must be installed by October 31, 2025, with NISO integrating them within 20 days thereafter.
NISO will monitor compliance through real-time data, generate hourly performance reports, and submit monthly summaries to NERC. Penalties for defaulters will be applied directly via the market settlement process, with proceeds deposited into the Ancillary Service Account.
NERC emphasized that its authority is backed by the Electricity Act 2023, which empowers it to enforce operational codes ensuring safety, security, and reliability in Nigeria’s power sector.
The commission also reminded GenCos that the Grid Code mandates all generating units to be equipped with fast-acting governors for primary control. Units isolated from the system but still capable of supplying demand must maintain frequency and voltage control.
Failure to enforce FGC compliance, NERC warned, threatens to further destabilize Nigeria’s already fragile power sector, with severe consequences for consumers and the economy.
