FG Warns Power Firms of Grid Disconnection Over Failure to Install Frequency Control Systems

The Federal Government has warned GenCos to comply with new grid control rules or face disconnection.

NERC stressed that failure to activate Free Governor Control threatens Nigeria’s fragile electricity stability.

The Federal Government has issued a stern warning to power-generating companies (GenCos), threatening to disconnect defaulting plants from the national grid if they fail to activate Free Governor Control (FGC) across all generating units.

The Nigerian Electricity Regulatory Commission (NERC) announced the directive in Order NERC/2025/094, signed on August 26 by Vice-Chairman Musiliu Oseni and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye. The order, which takes effect from September 1, 2025, is designed to enhance grid stability and prevent frequent system collapses.

FGC is a turbine governor control mechanism that enables power plants to automatically adjust their output in response to changes in grid frequency. This real-time balancing of demand and supply is considered critical for maintaining stability in Nigeria’s electricity grid, which recurrent disturbances have plagued.

NERC explained that GenCos must ensure their units are fully FGC-compliant by November 30, 2025. Plants that fail to meet the deadline will face stiff penalties: a fine of 10 percent of the invoice associated with the non-compliant unit for each day of default.

If violations persist for 90 consecutive days, the generating unit will be disconnected from the grid until it is certified as compliant by the Nigerian Independent System Operator (NISO).

The action comes in response to a concerning trend of grid instability. In 2024 alone, Nigeria experienced eight significant disturbances, five complete system collapses and three partial blackouts. The Transmission Company of Nigeria (TCN) found that the disturbances were mainly due to several Generation and Distribution Companies (GenCos) failing to comply with FGC regulations.

NERC stated that it could no longer tolerate practices that compromise grid reliability.

“Where a generating unit becomes isolated from the system but is still available to supply demand, it must be able to provide primary control to maintain frequency and voltage,” the order stated.

According to the updated regulations, every power plant connected to the grid is required to:

• Install fast-acting governor systems and operate them in real time.
• Procure Grade Level 5 IoT-enabled meters to monitor active power, reactive power, voltage, frequency, and power factor.
• Install the devices by October 31, 2025, with NISO mandated to integrate them into the grid within 20 days.

To ensure compliance, NISO will use real-time data to track plant performance, compile hourly records, and submit monthly compliance reports to NERC. Penalties will be applied directly through the market settlement process, with proceeds remitted into the Ancillary Service Account.

NERC emphasized that the directive derives its authority from the Electricity Act 2023, which empowers the regulator to set and enforce operating codes for safety, reliability, and security in the power sector.

The commission warned that ignoring the new measures would further expose Nigeria’s already fragile electricity system to instability, with potentially devastating consequences for households, businesses, and the economy as a whole.