President Bola Tinubu has appointed an 11-person team to spearhead the creation of the Grid Asset Management Company Limited (GAMCO) in an effort to address Nigeria’s ongoing power sector issues.
As part of attempts to address stranded power generation, transmission bottlenecks, and grid management inefficiencies, the Federal Executive Council of Nigeria approved the company’s establishment, leading to the formation of the committee.
To solve Nigeria’s ongoing electricity transmission issues, the Federal Executive Council had already authorized the creation of a grid asset management company.
The initiative is a significant reform step in the nation’s electrical industry, according to Femi Gbajabiamila, who established the group on the president’s behalf.
This was revealed in a statement released on Friday by Bayo Onanuga, the president’s special advisor for information and strategy.
“The proposed establishment of GAMCO is one of the revolutionary steps taken by Mr. President and this administration in the all-important power sector. We are here for the inauguration of the Committee on Grid Asset Management Company (GAMCO), which is basically to optimize and revolutionize power generation, and in particular, the grid and transmission sector,” he said.
He exhorted committee members to uphold their mission and stay in line with the president’s vision.
It is anticipated that the committee will carry out a thorough analysis of the laws, rules, policies, and institutional frameworks now in place that control the production, transmission, distribution, and market activities of the energy value chain.
Along with identifying areas of conflict, overlap, or inconsistency between the proposed GAMCO framework and current legal instruments, it will also look at how the Electricity Reform Laws (2025) would affect asset ownership, management structures, and regulatory oversight.
Key assets under consideration include facilities held by the Niger Delta Power Holding Company and the National Integrated Power Project, including the Omotosho, Olorunsogo, and Ihovbor power plants, which are part of the project’s pilot phase.
The committee will also assess the proposed company’s partnership with the Nigerian Electricity Regulatory Commission, as well as the initiative’s fiscal, financial, and market ramifications, such as subsidy exposure, market liquidity, and revenue models.
Furthermore, it will evaluate whether the establishment of GAMCO necessitates changes to fundamental legislation, subsidy regulations, or executive directives.
The President’s Chief of Staff chairs the committee, which includes Lateef Fagbemi; the ministers of power, works, and finance; as well as the ministers of communication and digital economy, science, technology, and innovation; aviation and aerospace development; and the minister of state for petroleum.
Other members include the Chairman of the Nigeria Revenue Service, energy specialist Yemi Oke, and the Permanent Secretary of the Cabinet Affairs Office, John Chidiebere Ezeamama, who also acts as secretary.
The proposed Grid Asset Management Company Limited will be a 100% government-owned commercial company, with shares held by the Ministry of Finance, Incorporated.
The effort aims to recover and optimize stranded power-producing capacity, with the Benin-Lagos transmission route serving as a test phase.
“The company will modernize transmission evacuation, starting from the most critical axis within Nigeria’s power system. The Benin-Lagos transmission corridor evacuates bulk power supply to Ogun and Lagos states, Nigeria’s largest industrial and commercial centers,” the statement said.
The pilot phase will concentrate on improving output at the Omotosho (513MW), Olorunsogo (754MW), and Ihovbor (508MW) plants.
“GAMCO projects to recover at least 1,600 MW within 18-24 months, alongside the development of a new high-capacity 330V+ double-circuit transmission line along the same corridor.”
The statement went on to say that if the pilot phase was successful, the approach may be expanded to other power plants and transmission corridors to help with long-term grid stability.
According to the government, significant investments in NIPP generation assets have been underutilized due to operational inefficiencies and transmission evacuation limits, resulting in stranded capacity.
The new corporation would work to free up stranded power from the selected plants and build a parallel high-capacity transmission route along the Benin-Lagos axis.
As proposed, the Niger Delta Power Holding Company will provide GAMCO concession and lease agreements for the three facilities, while the Transmission Company of Nigeria will permit the construction, financing, and operation of a 330KV+ double-circuit transmission line along the corridor.
According to the government, the project is projected to improve industry productivity, protect jobs, strengthen investor confidence, and increase household welfare, all of which are consistent with the administration’s economic plan.
