The Federal Government has warned electricity generation companies (GenCos) that they risk disconnection from the national grid if they fail to implement Free Governor Control (FGC) on all generating units.

The Nigerian Electricity Regulatory Commission (NERC), in an order effective September 1, 2025, directed GenCos to activate the system by November 30. Defaulting operators will face a 10 percent penalty on their invoices, while units that remain non-compliant for 90 straight days will be cut off from the grid.

FGC enables turbines and generators to automatically regulate their output in line with grid frequency, helping to prevent system collapse. NERC said the directive became necessary following multiple grid failures in 2024, which it blamed partly on poor compliance by GenCos.

The commission also ordered power firms to install IoT-enabled metering systems before October 31, with the Nigerian Independent System Operator monitoring compliance in real time and reporting monthly.

According to NERC, the measure is aimed at enforcing the Grid Code, strengthening grid stability, and reducing the risk of nationwide blackouts.