The Nigerian Electricity Regulatory Commission (NERC) has issued a firm directive to power generation companies (GenCos), mandating the full implementation and activation of Free Governor Control (FGC) systems on all grid-connected generating units. The new regulatory order NERC/2025/094 was signed on August 26, 2025, by Vice-Chairman Musiliu Oseni and Commissioner for Legal, Licensing & Compliance, Dafe Akpeneye. It officially takes effect on September 1, 2025.
According to NERC, failure to comply with the directive by November 30, 2025, will result in financial penalties and possible disconnection from the national grid. The commission has pegged the penalty for non-compliance at 10 percent of the invoice value of any defaulting generating unit. Units that remain non-compliant for 90 consecutive days will be disconnected from the grid entirely.
What is Free Governor Control?
Free Governor Control is a critical system function in electricity generation that allows a turbine or generator to automatically adjust its output in response to frequency changes on the grid. It plays a vital role in maintaining frequency stability, especially under fluctuating load conditions.
In technical terms, NERC describes FGC as a “fast-acting control system” that must operate in real-time, without delays, to modulate turbine speed and power output based on frequency deviations providing what is known as primary control.
Why It Matters
The commission says the policy is aimed at improving the reliability of electricity supply and preventing recurrent disturbances on the national grid. Nigeria experienced eight grid disturbances in 2024, including five total system collapses and three partial failures. Investigation reports from the Transmission Company of Nigeria (TCN) pointed to non-compliance with Grid Code provisions by some GenCos as a key factor.
A performance review of grid-connected generation companies also revealed a widespread failure to activate or maintain FGC systems as required under Section 12.6.2 of the Nigerian Grid Code.
Strict Enforcement Measures
In addition to activating FGC, all GenCos are now required to install Grade Level 5 metering systems with IoT-based monitoring capabilities for each generating unit. These meters must be capable of tracking:
- Active power,
- Reactive power,
- Power factor,
- Generator terminal voltage, and
- Frequency.
GenCos must communicate their readiness for meter installation to the Nigerian Independent System Operator (NISO) no later than October 31, 2025. Once notified, NISO has 20 days to install and integrate the meters. The system operator will also be responsible for real-time monitoring, hourly compliance reporting, and monthly submission of reports to NERC.
Repercussions for Non-Compliance
NERC’s order outlines stiff consequences:
- A 10% deduction will be applied to the monthly invoice of any generating unit found to be non-compliant with FGC activation.
- Any unit failing to operate in FGC mode for 90 straight days will be cut off from the national grid.
- Reconnection will only be allowed after the unit is certified compliant by NISO.
NISO has also been empowered to determine compliance status, apply penalties, manage dispute resolution, and ensure market settlements align with Rules 28 and 29 of the Market Rules. Proceeds from penalties will be remitted to the Ancillary Services Account.
Legal Mandate
NERC’s enforcement action is grounded in the Electricity Act, 2023. Under Section 34(1)(e), the commission is tasked with ensuring the safety, reliability, and quality of electricity services. Additionally, Section 34(2)(b) grants NERC the authority to establish operating codes and standards, including those governing FGC and other technical performance requirements.
“The primary control characteristics shall be maintained under all operational conditions,” the commission emphasized, stating that even isolated generating units must be capable of maintaining frequency and voltage via FGC when not connected to the main grid.
Driving Stability in the Power Sector
NERC says this enforcement order is part of a broader strategy to curb systemic instability and enforce full compliance with the Grid Code. By mandating FGC activation and enabling transparent monitoring, the commission aims to build a resilient, responsive, and reliable power system for Nigeria.
