The Federal Government has issued a stern warning to electricity generation companies (GenCos) in Nigeria, threatening to disconnect erring operators from the national grid if they fail to comply with new regulatory requirements designed to stabilise power supply.

The directive, released by the Nigerian Electricity Regulatory Commission (NERC) under reference number NERC/2025/094, comes against the backdrop of repeated national grid collapses that have plunged millions of Nigerians into darkness and stifled economic activities.

Signed on August 26, 2025, by NERC Vice-Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing & Compliance, Dafe Akpeneye, the order mandates all GenCos connected to the national grid to implement Free Governor Control (FGC) on their generating units.

The regulation takes effect on September 1, 2025, with full compliance expected by November 30, 2025.



In power generation, a governor is a control system that regulates turbine speed to maintain frequency stability.

Free Governor Control allows these governors to automatically adjust power output in response to fluctuations in grid frequency.

Without it, the grid becomes highly vulnerable to instability, often leading to system disturbances and blackouts.

According to NERC, many GenCos have failed to activate FGC despite clear requirements under the Grid Code, particularly section 12.6.2, which makes the provision of fast-acting governors mandatory.


The commission outlined stiff consequences for non-compliance. Any GenCo that fails to integrate FGC by November 30, 2025, will face a 10% penalty on invoices linked to the defaulting generating unit.

More severely, any unit that records 90 consecutive days of non-compliance risks being disconnected from the national grid.

Reconnection would only occur once the Nigerian Independent System Operator (NISO) certifies full compliance.

In addition, GenCos are required to procure Grade Level 5 IoT-enabled metering systems for real-time monitoring of performance.

These meters will track active power, reactive power, power factor, voltage, and frequency to ensure compliance.


Nigeria’s national grid remains one of the most unstable in the world. In 2024 alone, the system recorded eight disturbances, including five total collapses and three partial failures.

Investigations by the Transmission Company of Nigeria (TCN) cited widespread non-compliance with Grid Code provisions by GenCos as a major contributor.

The consequences have been far-reaching. Beyond plunging households into darkness, frequent grid failures disrupt industries, increase operational costs for businesses reliant on diesel generators, and undermine investor confidence in the Nigerian Electricity Supply Industry (NESI).



NERC stated that its decision is backed by the Electricity Act 2023, which empowers the commission under Section 34(1)(e) to ensure safety, security, reliability, and quality in electricity generation and delivery.

The regulator also cited Sections 12.6.2 and 15.8.3 of the Grid Code, stressing that compliance is not optional but a legal requirement for all operators.

“The repeated failure of some GenCos to activate Free Governor Control is no longer acceptable,” NERC said in the order.

“Stability of the grid is paramount, and operators must prioritise compliance to safeguard the integrity of the national power supply.”


Analysts believe the new enforcement regime could significantly improve grid stability if strictly implemented.

However, there are concerns about the financial strain on GenCos, many of whom already struggle with liquidity challenges, gas supply constraints, and mounting debts owed by the Nigerian Bulk Electricity Trading Plc (NBET).

Energy policy expert, Dr. Stephen Obaje, noted that while the directive is crucial, the government must also address systemic bottlenecks.

“Compliance with FGC is critical, but it won’t solve the broader crisis of inadequate generation capacity, poor transmission infrastructure, and delayed payments. A holistic approach is required,” he said.


The Federal Government insists the order is part of its wider agenda to build a more reliable, investor-friendly electricity sector.

Information Minister Mohammed Idris recently reiterated that stabilising the power grid is central to achieving President Bola Tinubu’s target of industrial growth and job creation.

By enforcing stricter compliance, the government hopes to not only reduce blackouts but also restore investor confidence in Nigeria’s electricity market, which has struggled since the privatisation of the power sector in 2013.


The next three months will be critical as GenCos race to meet the November 30 deadline. Industry stakeholders warn that failure to enforce compliance this time could deepen Nigeria’s energy crisis.

For millions of households and businesses weary of persistent blackouts, the hope is that the government’s tough stance will finally translate into a more stable and reliable national grid.