Nigeria’s power generation companies (Gencos) have pushed back strongly against a new regulatory order that could see their plants disconnected from the national grid if they fail to comply with new operational standards.
The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), last week directed all grid-connected power plants to activate Free Governor Control (FGC) across their generating units by November 30, 2025. The order, referenced NERC/2025/094, stipulates fines of up to 10 percent of invoices for non-compliant units and authorises the disconnection of plants that fail to meet the requirement for 90 consecutive days.
Free Governor Control is a system that allows turbines or generators to automatically adjust output in response to fluctuations in grid frequency, a key feature for stabilising the national power system.
But the Gencos have rejected the ultimatum. Speaking on behalf of the operators, the Managing Director of the Association of Power Generation Companies, Dr. Joy Ogaji, dared the regulator to “disconnect us today,” insisting that members of the group were already overstretched and unfairly targeted.
Another industry source, who asked not to be named, argued that generation companies have been the backbone of grid stability and have already lost equipment in efforts to keep the system running. “The sector is using Gencos to stabilise the grid. Egbin has lost two units in that process. If they disconnect us, debts owed to us also end. Gencos are suffocating already,” the operator said.
The companies also accused NERC of selective enforcement, claiming that while Gencos are being sanctioned, the transmission segment has not been held to the same standards under the Grid Code.
NERC defended its directive by citing eight major grid disturbances recorded in 2024, including five nationwide blackouts. Investigations by the Transmission Company of Nigeria linked many of these failures to Gencos’ non-compliance with FGC requirements.
As part of its enforcement measures, the commission has also ordered Gencos to install IoT-enabled metering systems capable of monitoring real-time output, voltage, and frequency, with installation deadlines set for October and integration by the Nigerian Independent System Operator before the end of November.
The regulator insists the move is essential to strengthening grid reliability and avoiding future system collapses. However, with Gencos openly challenging the order, the standoff threatens to escalate into one of the most significant power sector disputes in recent years.
