The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has issued a directive threatening to disconnect power-generating companies (GenCos) from the national grid if they fail to implement Free Governor Control (FGC) across all their generating units. The order, NERC/2025/094, took effect on September 1, 2025.
Free Governor Control is a turbine governor system that allows power plants to automatically adjust output in real time to stabilize grid frequency and maintain a balanced supply-demand ratio. This technology is crucial to preventing system collapses and wide-scale outages.
The order mandates all GenCos to activate and operate FGC on all generating units by November 30, 2025.
Failure to comply will result in a daily penalty of 10% of the invoiced amount for the non-compliant unit.
Any unit remaining non-compliant for 90 consecutive days will be disconnected from the grid pending certification of compliance by the Nigerian Independent System Operator (NISO).
NERC noted that in 2024, the national grid suffered eight disturbances, including five full collapses and three partial outages, largely attributed to GenCos’ failure to activate FGC.
As part of the directive, GenCos must install fast-acting governors and procure IoT-enabled Grade Level 5 meters capable of monitoring key parameters such as active and reactive power, voltage, frequency, and power factor.
These meters must be ready for installation by October 31, 2025, with NISO responsible for integration within 20 days.
NISO will monitor compliance in real time, submit monthly reports to NERC, and enforce penalties through the market settlement process.
The directive is grounded in the Electricity Act 2023, empowering NERC to ensure safety, reliability, and operational standards within Nigeria’s electricity sector.
GenCos have responded defiantly to the threat, with some daring the regulator to disconnect them, citing the ongoing pressures and perhaps selective enforcement concerns within the sector.
Nonetheless, NERC reaffirms that non-compliance threatens the stability of Nigeria’s fragile power grid with severe consequences for consumers and the economy.
