The Federal Government has issued a severe warning to electricity generation companies in Nigeria, threatening to disconnect them from the national grid if they fail to install crucial control systems on their power plants.
This drastic measure, announced by the Nigerian Electricity Regulatory Commission, is a direct response to the country’s incessant problem of national grid collapses, which cause widespread blackouts.
In a strict new order, the regulator has mandated all power generation companies connected to the grid to implement what is known as Free Governor Control across all their generating units. The commission warned that non-compliance would attract heavy penalties, including disconnection from the grid.
The order, referenced NERC/2025/094 and signed by the commissionโs Vice-Chairman, Musiliu Oseni, and the Commissioner, Legal, Licensing & Compliance, Dafe Akpeneye, will take effect on Sunday, September 1, 2025.
A governor control is a system that regulates the speed or output of a turbine or generator. Its primary function is to maintain a stable speed or frequency. Free Governor Control allows this system to automatically adjust power output in response to changes in grid frequency, helping to maintain stability and prevent collapses.
The order states that any GenCo that fails to comply with the integration and activation of this system on all generating units by November 30, 2025, “shall be liable to a penalty of a prorated 10 per cent of the invoice associated with the defaulting generating unit.”
Furthermore, it declares that “any generating unit that records 90 consecutive days of FGC non-compliance shall be disconnected from the grid.”
The commission said this measure was necessary to stem repeated system disturbances and enforce strict compliance with the Grid Code. According to the commission, the order seeks to “establish a structured framework for enhancing power generation reliability and stability of Nigeriaโs power grid by ensuring strict compliance with operational frequency limits, implementing transparent monitoring mechanisms, and penalties for violations of the Grid Code.”
NERC reminded operators that section 12.6.2 of the Grid Code “requires every generating unit to be fitted with a fast-acting governor system capable of regulating turbine speed and adjusting output when frequency deviates.”
“The FGC shall be sufficiently damped for both isolated and interconnected operation modes,” the order stated, adding that “the FGC and any other superimposed control loop shall contribute to the primary control to maintain the unit within the generating unitโs capability limits.”
The regulator provided justification for its strong action, recalling that “the national grid experienced eight incidents of grid disturbances in 2024, which resulted in five full system failures and three partial system failures,” blaming the GenCos for these incidents.
“The incident reports filed by the Transmission Company of Nigeria Plc identified non-compliance with the provisions of the Grid Code by some generation companies as contributory factors,” the NERC noted. “The performance review of the operations of grid-connected GenCos in 2024 revealed that there was significant failure on the activation of FGC.”
The order mandates that “all grid-connected GenCos shall install a fast-acting FGC in all generating units, and the FGC shall be operable at all times by 30 November 2025.”
It also requires that “GenCos shall at all times activate and operate the FGC in real-time without any time delays.”
Under the new rules, GenCos are mandated to “procure and supply a Grade Level 5 metering system with IoT-based monitoring capabilities for each generating unit and communicate readiness for installation to the NISO by 31 October 2025.”
The Nigerian Independent System Operator has been tasked with installing these meters and will “actively monitor and enforce strict compliance with the operationalisation of FGC mode in generating units.”
“NISO shall maintain real-time monitoring and record hourly compliance reports on the operation of FGC across all generating units,” the order read, adding that the system operator must “compile and file monthly reports with the commission on the status of compliance.”
On the consequences for non-compliance, the regulator was unequivocal: “Where a generating unit records 90 consecutive days of FGC non-compliance, the affected generating unit shall be disconnected from the grid. Reconnection shall only occur after NISO has certified the unit as fully compliant with the requirements of the Grid Code.”
The order also detailed financial penalties, stating that NISO shall be responsible for “implementing penalties on the invoice and settlement of the affected GenCo” and that “the proceeds of the penalty shall be remitted to the Ancillary Service Account.”
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