Nigeria’s electricity generation companies have warned that constant grid failures, rising debts, and poor market practices are crippling their operations and pushing up costs.

The Association of Power Generation Companies (APGC), led by its CEO Joy Ogaji, reacted to threats by the Nigerian Electricity Regulatory Commission (NERC) to penalize and disconnect plants that fail to install the Free Governor Control system. She argued that the real problem lies in an unstable transmission grid and chronic payment delays, not in compliance alone.

NERC had ordered all GenCos to activate the Free Governor Control by November 30, 2025, or risk sanctions and disconnection. But Ogaji said plants cannot perform effectively when grid disturbances force them to run below their designed capacity, leading to inefficiency, higher fuel use, and steep maintenance costs.

She noted that repair expenses have nearly tripled due to frequent disruptions, while many of these costs are not recognized in tariffs. The absence of spinning reserves, she added, has also left the grid vulnerable to collapses.

Ogaji further blamed steel mills for creating harmful voltage fluctuations that damage turbines and increase system stress.

While admitting that Free Governor Mode helps stabilize frequency, she insisted it cannot solve grid collapse alone and must be paired with other grid code measures.

The GenCos are now demanding strict rules that guarantee prompt payment of their revenues, warning that continued delays are making the sector unsustainable. Ogaji stressed that power firms remain ready to cooperate with stakeholders but will not sacrifice their equipment and staff to keep the industry afloat.