The Federal Government has issued a stern warning to electricity generation companies (GenCos), threatening disconnection from the national grid for failure to comply with new regulatory directives aimed at stabilising Nigeria’s fragile electricity system.
The Nigerian Electricity Regulatory Commission (NERC), in an order dated 26 August 2025 and referenced NERC/2025/094, mandated all GenCos connected to the grid to implement Free Governor Control (FGC) across their generating units. The order, signed by Vice-Chairman Musiliu Oseni and Commissioner Dafe Akpeneye, takes effect from 1 September 2025.
FGC is a control mechanism that allows a turbine or generator to automatically adjust output in response to frequency fluctuations on the grid. It ensures generators contribute to stabilising power supply by matching output with demand. Without it, sudden demand surges or drops can trigger system collapses.
NERC’s directive comes against the backdrop of repeated nationwide blackouts. In 2024, Nigeria recorded eight grid disturbances, including five total system collapses and three partial failures. Incident reports by the Transmission Company of Nigeria (TCN) identified GenCos’ poor compliance with the Grid Code—particularly the failure to activate FGC—as a major contributor.
According to the new order, any GenCo that fails to integrate and activate FGC by 30 November 2025 will face stiff sanctions. Penalties include a prorated 10% deduction from invoices for non-compliant units, while units found in breach for 90 consecutive days will be disconnected entirely from the grid. Reconnection will only be permitted after full compliance is certified.
The commission also mandated GenCos to procure Grade Level 5 IoT-based meters capable of real-time monitoring of power quality, output, and frequency. These must be installed by 31 October 2025, with the Nigerian Independent System Operator (NISO) tasked to integrate and monitor them. NISO will provide hourly compliance reports and file monthly updates with NERC.
NERC justified the move by citing its statutory responsibility under the Electricity Act 2023 to ensure reliability, safety, and quality of service in Nigeria’s electricity supply. Sections 12.6.2 and 15.8.3 of the Grid Code already compel all generating units to maintain fast-acting FGC under all operating conditions.
Industry analysts say the directive represents one of the boldest regulatory interventions in recent years. However, questions remain about GenCos’ readiness, given ageing infrastructure, gas supply shortages, and funding constraints. While the order seeks to enforce discipline, critics warn that strict penalties could worsen generation shortfalls if units are disconnected.
With system collapses costing the economy billions of naira in lost productivity, stakeholders see NERC’s move as both necessary and overdue. Yet, the real test will be whether Nigeria’s power sector—long plagued by technical lapses and governance failures—can align operations with regulatory demands to deliver stable electricity.
By enforcing strict compliance with FGC, Nigeria’s regulators hope to shift the national grid from perpetual fragility to resilience. But the coming months will determine whether this directive sparks genuine reform or deepens the cycle of crisis.