The Federal Government has warned electricity generation companies (GenCos) that they risk disconnection from the national grid if they fail to comply with new regulatory directives on grid stability.
The directive, issued by the Nigerian Electricity Regulatory Commission (NERC) under order reference NERC/2025/094, requires GenCos to activate Free Governor Control (FGC) on all generating units. The order was signed on August 26, 2025 by Musiliu Oseni, NERC’s vice-chairman, and Dafe Akpeneye, commissioner for legal, licensing, and compliance. It took effect on September 1, 2025.
FGC is a control mechanism that allows a turbine or generator to automatically adjust output in response to frequency changes on the grid, thereby improving stability.
NERC warned that GenCos who fail to integrate FGC by November 30, 2025 would face a 10 percent penalty on invoices linked to non-compliant units. Units that remain non-compliant for 90 consecutive days will be disconnected from the grid.
NERC: Grid failures linked to GenCos’ lapses
The regulator said the move was necessary to curb frequent grid collapses. In 2024, the national grid suffered eight disturbances — five full collapses and three partial failures. Reports from the Transmission Company of Nigeria (TCN) cited GenCos’ non-compliance with grid rules as a key cause.
According to NERC, section 12.6.2 of the Grid Code requires all generating units to have fast-acting governors for frequency control. The commission stressed that compliance would improve reliability and ensure a more resilient grid.
“Section 12.6.2 of the Grid Code for the Nigerian Electricity Transmission System requires all generating units to be fitted with fast-acting FGC that is capable of regulating turbine speed and adjusting power output based on frequency deviation exigencies, i.e., primary control,” the order stated.
The order also mandated GenCos to procure Grade Level 5 IoT-enabled meters to monitor compliance in real-time. These devices must be installed and integrated by the Nigerian Independent System Operator (NISO) before the end of October 2025.
NISO will provide hourly compliance tracking, monthly reports to NERC, and impose penalties on defaulting companies.
Consequences for non-compliance
NERC warned: “Any GenCo that fails to comply with the provisions of sections 12.6.2 and 15.8.3 of the Grid Code on the integration and activation of FGC on all generating units by 30 November 2025 shall be liable to a penalty of a prorated 10 per cent of the invoice associated with the defaulting generating unit… Where a generating unit records 90 consecutive days of FGC non-compliance, the affected generating unit shall be disconnected from the grid.”
Reconnection, the order added, will only occur after NISO certifies the unit as fully compliant.