The Federal Government has given power-generating companies an ultimatum to activate Free Governor Control (FGC) systems on all their units or risk being cut off from the national electricity grid. The new requirement takes effect on September 1, 2025.
The Nigerian Electricity Regulatory Commission (NERC) issued the directive on August 26, with the order signed by Vice-Chairman Musiliu Oseni and Commissioner Dafe Akpeneye.
The move aims to address frequent power system failures and improve electricity supply stability across the country.
FGC is an automated system that adjusts power plant output when grid frequency changes occur.
This technology helps maintain the balance between electricity supply and demand, preventing widespread blackouts.
Power companies that fail to implement FGC by November 30, 2025, will face daily fines equivalent to 10% of their invoice for each non-compliant unit.
If violations continue for 90 days, the affected units will be disconnected from the grid until they receive compliance certification from the Nigerian Independent System Operator (NISO).
NERC explained that these measures became necessary after Nigeria’s power grid experienced eight major disruptions in 2024, including five complete system collapses and three partial outages.
The Transmission Company of Nigeria (TCN) found that these incidents were largely caused by power plants failing to comply with FGC requirements.
To comply with the new rules, generating companies must:
- Install and operate fast-acting governor systems in real time
- Purchase Grade Level 5 IoT-enabled meters by October 31, 2025, to monitor power output, voltage, frequency, and other key metrics
- Allow NISO to connect these meters to its monitoring network within 20 days
NISO will use real-time data to track compliance and submit monthly performance reports to NERC.
Fines will be automatically deducted through the market settlement process, with the money going to the Ancillary Service Account.
NERC emphasized that its authority comes from the Electricity Act 2023, which gives the commission power to establish and enforce operating standards for safety, security, and reliability in Nigeria’s power sector.
The regulator noted that the Grid Code already requires all generating units to have fast-acting governors for primary control.
Even when units operate independently while still serving customers, they must provide frequency and voltage support to the system.
NERC warned that continued failure to implement FGC compliance will keep Nigeria’s vulnerable power sector exposed to instability, causing serious harm to consumers and the broader economy.
