Baffled by persistent national grid collapses, the Federal Government has directed all electricity generation companies (GenCos) connected to the grid to activate Free Governor Control (FGC) across their generating units or risk severe penalties, including disconnection.
The Nigerian Electricity Regulatory Commission (NERC), in an order referenced NERC/2025/094 and signed on August 26, 2025, by Vice-Chairman Musiliu Oseni and Commissioner for Legal, Licensing & Compliance, Dafe Akpeneye, said the directive takes effect from September 1.
Free Governor Control allows a generator’s turbine governor to automatically adjust output in response to fluctuations in grid frequency, thereby enhancing system stability.
According to the order, GenCos must fully integrate and activate FGC by November 30, 2025. Any company that fails to comply will pay a prorated penalty of 10 per cent of the invoice associated with the defaulting unit. Units that remain non-compliant for 90 consecutive days will be disconnected from the grid.
NERC stressed that the measure was necessary to stem repeated system disturbances, citing eight grid collapses recorded in 2024—five total and three partial—which were partly attributed to GenCos’ failure to activate FGC.
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The regulator said compliance is backed by the Electricity Act 2023 and sections 12.6.2 and 15.8.3 of the Grid Code, which mandate every generating unit to be fitted with a fast-acting governor capable of regulating turbine speed and output.
In addition, GenCos are required to install Grade Level 5 IoT-enabled metering systems by October 31, 2025, to enable the Nigerian Independent System Operator (NISO) to monitor compliance in real time.
NERC warned that penalties for violations will be enforced through the Market Rules, with proceeds remitted to the Ancillary Service Account.
The commission said the order was aimed at promoting reliability, minimising system failures, and ensuring a more stable national electricity grid.
