Nigeria’s power generation companies have pushed back against a new regulatory order that threatens to disconnect non-compliant plants from the national grid.
The Nigerian Electricity Regulatory Commission, citing repeated system collapses, on Monday directed all generation companies to implement Free Governor Control across their generating units.
The directive, contained in Order NERC/2025/094, took effect on September 1 and carries strict penalties for defaulting operators.
Under the order, Gencos that fail to integrate and activate FGC by November 30, 2025, will face a prorated fine equal to 10 per cent of the invoice associated with the defaulting unit. Units that remain non-compliant for 90 consecutive days risk being disconnected from the grid entirely.
But the Gencos, responding to the threat, told the regulator to proceed with its disconnection plan immediately, signaling mounting tensions between operators and the government over grid stability and regulatory enforcement.
“Any Genco that fails to comply with the provisions of sections 12.6.2 and 15.8.3 of the Grid Code on the integration and activation of FGC on all generating units by 30 November 2025 shall be liable to a penalty of a prorated 10 per cent of the invoice associated with the defaulting generating unit for the duration during which it was not operated with its FGC activated, that is, FGC non-compliant.
“Where a generating unit records 90 consecutive days of FGC non-compliance, the affected generating unit shall be disconnected from the grid. Reconnection shall only occur after NISO has certified the unit as fully compliant with the requirements of the Grid Code,” the order declared.
In response, the Managing Director and Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, challenged the regulator to follow through on its threat and disconnect members from the national grid, according to The Punch.
When informed that the directive had already been published on NERC’s website, Ogaji declined further comment, saying, “Then no comment. We wait for the implications. We wait for them to disconnect us. They should disconnect us today,” she stated on Monday.
In power generation, a governor is a control mechanism that regulates the speed and output of a turbine or generator to ensure stable frequency. Free Governor Control (FGC) is an operating mode that allows the governor to automatically adjust output in response to fluctuations in grid frequency. By enabling this adjustment, generators help stabilize the grid by increasing or reducing supply to match demand and maintain frequency within acceptable limits.
However, the Gencos stressed that they were not opposed to regulations, but expressed concern over what they described as selective compliance and uneven enforcement in the industry.
“We are not bothered about rules. We are only concerned that there is selective compliance and enforcement. In every market, both parties must adhere. Has the transmission section adhered to the grid code of frequency? Check the commission website and tell me one regulation implemented since 2017, except against Gencos. Gencos are the most compliant. This threat of disconnection is actually what we want now,” an APGC official said on Monday.
