The directive, issued by the Nigerian Electricity Regulatory Commission (NERC) under order NERC/2025/094 and signed on August 26, 2025, by Vice-Chairman Musiliu Oseni and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, will take effect on September 1, 2025.
FGC is a turbine or generator control system that allows automatic adjustment of output in response to frequency changes, thereby stabilising the grid. NERC stressed that failure to deploy and activate FGC by November 30, 2025, would attract a penalty of 10 per cent of the invoice linked to the defaulting generating unit. Any unit that remains non-compliant for 90 consecutive days will be disconnected from the grid.
The regulator explained that the order is aimed at reducing system disturbances, ensuring strict enforcement of the Grid Code, and improving the reliability and stability of the national grid. It added that sections 34(1)(e) and 34(2)(b) of the Electricity Act 2023 empower NERC to enforce operating standards to guarantee safety, security, and quality in electricity supply.
According to NERC, incident reports from the Transmission Company of Nigeria Plc showed that non-compliance by some GenCos contributed significantly to eight grid disturbances recorded in 2024—five total system collapses and three partial outages.
As part of the new compliance framework, GenCos must also install Grade Level 5 IoT-based metering systems for each generating unit by October 31, 2025, to enable real-time monitoring. The Nigerian Independent System Operator (NISO) will oversee integration, data validation, and enforcement of compliance.
NERC warned that non-compliant units will not only incur financial penalties but also risk disconnection until full compliance is certified by NISO. Proceeds from penalties will be channelled into the Ancillary Service Account, the order noted.
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