The Federal Government has threatened to disconnect electricity generation companies (GenCos) that fail to comply with new grid stability directives, as part of efforts to curb frequent national grid collapses.
In a regulatory order issued by the Nigerian Electricity Regulatory Commission (NERC), all GenCos connected to the national grid must implement Free Governor Control (FGC) across their generating units by 30 November 2025 or face stiff penalties, including disconnection.
The directive, referenced NERC/2025/094 and signed on 26 August 2025 by Vice-Chairman Musiliu Oseni and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, takes effect on 1 September 2025.
FGC is a turbine or generator control mechanism that automatically adjusts output in response to grid frequency fluctuations, helping to maintain stability by matching supply with demand. NERC said enforcing its activation is critical to preventing further system disturbances.
“Any GenCo that fails to integrate and activate FGC on its generating units by the deadline will be penalised with a prorated 10 per cent deduction on invoices linked to the defaulting unit,” the commission stated. “A unit that records 90 consecutive days of non-compliance will be disconnected from the grid.”
The regulator cited eight grid disturbances in 2024—five full collapses and three partial failures—which it blamed partly on GenCos’ non-adherence to Grid Code provisions.
To enforce compliance, NERC has mandated GenCos to procure Grade Level 5 IoT-enabled meters capable of tracking power output, voltage, frequency, and other parameters, and to notify the Nigerian Independent System Operator (NISO) of readiness for installation by 31 October 2025. NISO will integrate the meters within 20 days and provide real-time monitoring, with compliance reports submitted monthly to NERC.
The order is anchored on provisions of the Electricity Act 2023, which empowers the regulator to enforce operational codes and ensure the safety, reliability, and quality of electricity supply.
NERC stressed that the move seeks to build “a structured framework for enhancing reliability of power generation and stability of Nigeria’s electricity grid” by tightening oversight, monitoring compliance, and applying penalties where necessary.
Reiterating its zero-tolerance stance on infractions, the commission warned that reconnection of disconnected units will only occur after full compliance has been certified by NISO.
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