By Oke Peter
In response to the persistent collapse of Nigeria’s national grid, the Federal Government has mandated all electricity generation companies (GenCos) connected to the grid to implement Free Governor Control (FGC) across their generating units. The directive, issued by the Nigerian Electricity Regulatory Commission (NERC), warns that failure to comply will attract steep penalties, including financial sanctions and potential disconnection from the grid.
The new regulation, referenced NERC/2025/094, was signed on August 26, 2025, by the Commission’s Vice-Chairman Musiliu Oseni and Commissioner for Legal, Licensing & Compliance, Dafe Akpeneye. It takes effect from September 1, 2025.
FGC is a critical control mechanism in power generation that enables turbines or generators to automatically adjust output in response to grid frequency changes, thereby helping to stabilize the power system. NERC emphasized that proper activation of this system is key to preventing grid disturbances.
According to the order, all GenCos must fully integrate and activate FGC in every generating unit by November 30, 2025. Non-compliance will attract a pro-rated 10% penalty on the revenue invoice for each defaulting unit. Furthermore, any generating unit found to be non-compliant for 90 consecutive days will be disconnected from the grid.
NERC stated that this measure is aimed at enforcing compliance with the Grid Code and ensuring the operational stability of Nigeria’s electricity network. “The Commission seeks to establish a structured framework for enhancing power generation reliability and grid stability,” it said, citing sections 12.6.2 and 15.8.3 of the Grid Code and section 34 of the Electricity Act 2023.
The Commission recalled that the national grid suffered eight major disturbances in 2024, five of which led to total system collapse. Reports from the Transmission Company of Nigeria (TCN) identified non-compliance with FGC by GenCos as a major contributing factor.
As part of the new compliance framework: All GenCos are required to install fast-acting FGC systems in their units. FGC must remain operational at all times, with real-time activation. Each unit must be equipped with Grade Level 5 IoT-based metering systems capable of measuring key parameters including active power, frequency, and voltage.
Also, the meters must be in place and ready for installation by October 31, 2025, and will be integrated by the Nigerian Independent System Operator (NISO) within 20 days of notification.
NISO will also be responsible for real-time monitoring, compliance tracking, and submitting monthly performance reports to NERC. Defaulting GenCos will have penalties imposed as part of their monthly market settlements, with proceeds remitted to the Ancillary Service Account.
Disconnection due to prolonged non-compliance can only be reversed after NISO certifies full FGC activation and operation.
This sweeping order marks one of the most stringent regulatory steps taken in recent years to address the fragile state of Nigeria’s electricity grid and restore confidence in the National Electricity Supply Industry (NESI).
