The Nigerian Electricity Regulatory Commission (NERC) has issued an order threatening to disconnect power-generating companies from the national grid if they fail to implement the Free Governor Control (FGC) across their generating units. This directive, signed on August 26, 2025, by NERC’s Vice-Chairman, Musiliu Oseni, and Commissioner, Legal, Licensing & Compliance, Dafe Akpeneye, is set to take effect on September 1, 2025.
In the power generation sector, a governor is a control system that regulates the speed or output of a turbine or generator to maintain a stable frequency. The FGC is a mode of operation that allows the governor to freely adjust the output in response to changes in grid frequency, contributing to grid stability by automatically increasing or decreasing output to match demand.
NERC has ordered that any generating company (GenCo) that fails to comply with the integration and activation of FGC on all generating units by November 30, 2025, will be liable to a penalty of a prorated 10 percent of the invoice associated with the defaulting generating unit. Furthermore, any generating unit that records 90 consecutive days of FGC non-compliance shall be disconnected from the grid.
The commission’s decision is aimed at enhancing power generation reliability and stability in Nigeria’s power grid. The order seeks to establish a structured framework for ensuring strict compliance with operational frequency limits, implementing transparent monitoring mechanisms, and imposing penalties for violations of the Grid Code.
According to NERC, the measure is necessary to stem repeated system disturbances and enforce strict compliance with the Grid Code. The regulator noted that the national grid experienced eight incidents of grid disturbances in 2024, resulting in five full system failures and three partial system failures, which were partly attributed to non-compliance by some GenCos.
To ensure compliance, NERC has mandated all grid-connected GenCos to install a fast-acting FGC in all generating units, which must be operable at all times by November 30, 2025. Additionally, GenCos are required to procure and supply a Grade Level 5 metering system with IoT-based monitoring capabilities for each generating unit, which will enable real-time monitoring and enforcement of FGC compliance.
The Nigerian Independent System Operator (NISO) will be responsible for installing and integrating the IoT metering systems, as well as monitoring and enforcing strict compliance with FGC requirements. NISO will maintain real-time monitoring and record hourly compliance reports on the operation of FGC across all generating units, and compile monthly reports for the commission to facilitate regulatory oversight.
The consequences for non-compliance are significant, with penalties and potential disconnection from the grid for generating units that fail to meet the FGC requirements. The order reinforces NERC’s commitment to ensuring the reliability and stability of Nigeria’s power grid, and its determination to enforce strict compliance with the Grid Code.
