The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has read the riot act to electricity generation companies (GenCos), warning of heavy sanctions, including outright disconnection from the national grid, if they fail to comply with critical operational standards.
In an order referenced NERC/2025/094, signed on August 26, 2025, by the Commission’s Vice-Chairman, Musiliu Oseni, and the Commissioner, Legal, Licensing & Compliance, Dafe Akpeneye, the regulator directed all GenCos to implement Free Governor Control (FGC) across their generating units. The directive takes effect on September 1, 2025, with full compliance expected by November 30, 2025.
The Commission explained that FGC is a vital mechanism that allows turbines and generators to automatically regulate their output in response to grid frequency changes, thereby contributing to grid stability. NERC lamented that repeated refusal by some GenCos to activate this system had contributed to several nationwide blackouts, including eight grid disturbances in 2024, which resulted in five total collapses and three partial failures.
NERC’s order makes it clear that the era of laxity is over. Any GenCo that fails to activate FGC on all units by November 30 will face a penalty of 10 per cent of its monthly invoice. Furthermore, any generating unit that records 90 consecutive days of non-compliance will be disconnected from the grid and will only be reconnected once it has been certified fully compliant.
“The Oseni-Akpeneye order leaves no room for compromise,” the regulator stated. “The FGC must be activated and operable in real-time without delays. Where infractions persist, defaulters will face both financial penalties and disconnection from grid operations.”
The Commission emphasized that its action is rooted in the Electricity Act 2023, which mandates it under Section 34(1)(e) to ensure the safety, reliability, and quality of power supply, and under Section 34(2)(b) to enforce compliance with operational codes. By invoking these provisions, NERC said it was not only protecting consumers but also safeguarding national energy security.
To strengthen enforcement, NERC directed GenCos to install Grade Level 5 IoT-enabled metering systems on every generating unit by October 31, 2025. These devices must be capable of measuring active and reactive power, power factor, voltage, and frequency. The Nigerian Independent System Operator (NISO) will integrate the meters within 20 days of installation and provide real-time compliance data to NERC. Hourly monitoring reports and monthly compliance updates will also be filed.
According to the regulator, this strict monitoring framework will put an end to the culture of negligence that has plagued the Nigerian Electricity Supply Industry (NESI). “With IoT-based oversight and strict sanctions, GenCos will no longer get away with actions that endanger the grid and inflict hardship on millions of Nigerians,” the order stressed.
The Federal Government further reminded operators that stabilising the national grid is non-negotiable, as the repeated collapses have disrupted industries, businesses, and households nationwide. It declared that GenCos found culpable of sabotage or negligence would be held accountable without hesitation.
With this decisive ultimatum, the Federal Government has made it clear that electricity generation companies must either comply with the Grid Code in full or risk expulsion from the grid, a move widely seen as a turning point in efforts to stabilise Nigeria’s troubled power sector.
