Nigeria FG Threatens to Disconnect Power Companies Over Grid Failures

The Digest:

The Federal Government has issued a stern warning to power-generating companies (GenCos), threatening to disconnect them from the national grid. In a move that signals no more excuses, the government is forcing compliance with a critical system to prevent future collapses and ensure a stable power supply for all Nigerians.

Key Points:

• The Federal Government is threatening to disconnect GenCos from the national grid.
• The Nigerian Electricity Regulatory Commission (NERC) issued the threat in a new order.
• GenCos are being sanctioned for failing to activate Free Governor Control (FGC) on their units.
• The order, which takes effect on September 1, imposes daily fines for non-compliance.
• The regulator's action follows eight national grid disturbances recorded in 2024.
• GenCos must install new fast-acting governor systems and special meters by November 30.
• The ultimate goal is to improve the stability and reliability of the country's power sector.

This decisive action by the government highlights the growing frustration with frequent power outages. By enforcing strict penalties and real-time monitoring, the NERC hopes to stabilize Nigeria’s fragile power sector and protect the economy from further disruption.