FG Threatens to Disconnect GenCos Over Grid Infractions
The Federal Government has warned electricity generation companies (GenCos) operating in Nigeria that they risk being disconnected from the national grid if they fail to comply with new regulatory directives aimed at stabilising power supply.
In a directive issued by the Nigerian Electricity Regulatory Commission (NERC), GenCos have been ordered to activate Free Governor Control (FGC) on all their generating units by November 30, 2025. The order, referenced NERC/2025/094 and signed on August 26 by Vice-Chairman Musiliu Oseni and Commissioner Dafe Akpeneye, stressed that compliance is no longer optional.
According to the commission, any generating unit that fails to implement FGC will attract a prorated penalty amounting to 10 percent of its monthly invoice value. NERC further warned that non-compliance for a continuous period of 90 days will lead to the disconnection of the erring unit from the national grid until full compliance is certified.
The regulatory body explained that the move is necessary to curb frequent grid disturbances, which have plagued the country’s electricity sector.
In 2024 alone, Nigeria suffered eight system collapses—five full and three partial—largely attributed to lapses in operational standards by some GenCos.
Free Governor Control allows a generating unit’s system to automatically adjust its output in response to frequency changes, ensuring grid stability. NERC also directed GenCos to install Grade Level 5 IoT-enabled meters on all units by October 31, 2025, to provide real-time data on output, voltage, frequency, and power factor. These devices will be integrated by the Nigerian Independent System Operator (NISO) within 20 days of installation for continuous monitoring.
NISO will be responsible for ensuring compliance, submitting monthly reports to NERC, and enforcing penalties or disconnections where necessary.
Industry experts say the new rules reflect a tougher stance by the government, which has been under pressure to address the recurring national blackouts and poor reliability of the power grid. While the directive is expected to improve oversight and strengthen grid stability, some stakeholders caution that GenCos may face financial and technical challenges in meeting the strict timelines.
The government, however, insists that decisive action is needed to restore confidence in Nigeria’s electricity sector and minimise disruptions that have crippled businesses and households nationwide.
