BUSINESS

FG WARNS POWER FIRMS: COMPLY WITH GRID RULES OR FACE DISCONNECTION
The Federal Government has issued a stern warning to power-generating companies (GenCos), threatening to disconnect them from the national grid if they fail to comply with new stability requirements.
According to an order released by the Nigerian Electricity Regulatory Commission (NERC), all GenCos must fully implement Free Governor Control (FGC) across their generating units by November 30, 2025, or face penalties.
FGC is a vital control system that allows turbines and generators to automatically adjust output when there are changes in demand. This helps to stabilise the electricity grid, preventing sudden collapses or blackouts.
NERC explained that non-compliant GenCos will first face a 10% penalty on invoices linked to defaulting units. Any generating unit that remains non-compliant for 90 consecutive days risks being completely disconnected from the national grid.
The regulatory body stressed that the order was necessary due to repeated grid disturbances in recent years. In 2024 alone, Nigeria suffered eight major grid incidents, including five full system collapses that left millions without power.
“The goal is to enhance the reliability of electricity supply, minimise system failures, and enforce strict compliance with the Grid Code,” NERC stated.
Under the Electricity Act 2023, NERC is empowered to ensure safety, reliability, and quality of electricity services in Nigeria. The commission reminded GenCos that every generating unit must have a fast-acting governor system to stabilise output whenever the grid frequency fluctuates.
This move is part of broader efforts to strengthen Nigeria’s fragile power sector and reduce the risk of nationwide blackouts.
"This represents a significant development in our ongoing coverage of current events."— Editorial Board