September 1, 2025 | Published by Cyril
The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has directed all electricity generation companies (GenCos) connected to the national grid to immediately activate Free Governor Control (FGC) across their generating units or risk severe penalties, including disconnection from the grid.
The directive, contained in Order NERC/2025/094 and signed on August 26, 2025, by NERC’s Vice-Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing & Compliance, Dafe Akpeneye, takes effect from September 1, 2025.
Why the Order Was Issued
According to NERC, the move was necessitated by repeated national grid collapses. In 2024 alone, Nigeria witnessed eight major grid disturbances—five full system failures and three partial blackouts. The Transmission Company of Nigeria (TCN) linked these incidents to poor compliance with Grid Code provisions by several GenCos, particularly failures in deploying Free Governor Control.
FGC is a control mechanism that allows turbines or generators to automatically adjust their output in response to changes in grid frequency, thereby stabilizing the power supply.
Key Compliance Deadlines
- October 31, 2025 – GenCos must procure and supply Grade Level 5 IoT-based monitoring meters for each generating unit.
- November 30, 2025 – All GenCos must integrate and activate FGC across their generating units.
Penalties for Non-Compliance
- Any GenCo that fails to comply will face a 10% penalty on invoices related to defaulting units for every day of non-compliance.
- Units with 90 consecutive days of non-compliance will be disconnected from the national grid. Reconnection will only occur after the Nigerian Independent System Operator (NISO) certifies full compliance.
Monitoring and Enforcement
The new order mandates NISO to:
- Install and integrate IoT-based meters within 20 days of readiness notification.
- Track compliance in real-time, generating hourly records and filing monthly compliance reports with NERC.
- Enforce penalties, invoice defaulting GenCos, and remit penalties to the Ancillary Service Account.
Legal Backing
NERC stressed that the order is backed by Section 34 of the Electricity Act 2023, which mandates the commission to ensure the safety, security, reliability, and quality of Nigeria’s electricity supply.
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The regulator reminded operators that Section 12.6.2 of the Grid Code requires all generating units to have fast-acting governor systems capable of responding to frequency deviations.
With this measure, NERC said it aims to enhance grid stability, reduce the risk of system disturbances, and enforce discipline among operators.
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