President Bola Tinubu is taking new steps to strengthen Nigeria’s electricity sector with the inauguration of an 11-member committee tasked with facilitating the establishment of the Grid Asset Management Company Limited, known as GAMCO.
According to Mediaplusng.com, the committee is expected to oversee the framework for incorporating the new company and develop strategies that will improve electricity transmission, address stranded power generation, and optimise the national grid infrastructure.
The formation of the committee follows the approval by the Federal Executive Council for the creation of the Grid Asset Management Company during its meeting earlier in the week.
The initiative is designed as part of broader reforms aimed at improving efficiency within Nigeria’s electricity value chain, particularly in power generation, transmission, and grid management.
According to Mediaplusng.com, the Chief of Staff to the President, Femi Gbajabiamila, performs the inauguration on behalf of President Tinubu and emphasises the strategic importance of the committee’s work to the administration’s power sector agenda.
He explains that the proposed establishment of GAMCO represents one of the significant policy steps introduced by the federal government to transform Nigeria’s electricity infrastructure.
Gbajabiamila states that the initiative is expected to optimise power generation and improve the efficiency of the national transmission network, which remains a major challenge in Nigeria’s energy sector.
He also urges members of the committee to align with the President’s vision and ensure that the company is structured in a way that delivers measurable results.
According to Mediaplusng.com, the committee has been given a broad mandate to examine the legal, regulatory, and institutional frameworks governing Nigeria’s electricity industry.
This includes conducting a comprehensive review of laws, policies, and regulations that shape the electricity value chain, covering generation, transmission, distribution, and electricity market operations.
The committee will also study the implications of the Electricity Reform Laws enacted in 2025, particularly how they affect asset ownership, management structures, and regulatory oversight within the sector.
Another key responsibility is identifying potential conflicts, overlaps, or inconsistencies between the proposed GAMCO framework and existing legal instruments guiding the power industry.
Members of the committee will also evaluate the legal and operational status of major national power assets under the Niger Delta Power Holding Company and the National Integrated Power Project.
These assets include the Omotosho, Olorunshogo, and Ihovbor power plants, which are expected to play a central role in the pilot phase of the new grid asset management initiative.
The committee will further examine the relationship between GAMCO’s responsibilities and the statutory functions of the Nigeria Electricity Regulatory Commission.
In addition, it will assess financial and market implications associated with the project, including subsidy structures, electricity market liquidity, and revenue frameworks within the power sector.
The committee will also determine whether new legislation or amendments to existing laws will be required to enable the effective establishment and operation of the Grid Asset Management Company.
President Tinubu has appointed the Chief of Staff to the President as chairman of the committee.
Other members include the Attorney-General of the Federation and Minister of Justice, as well as the Ministers of Power, Works, and Finance.
Additional members include the Ministers of Communications and Digital Economy, Science, Technology and Innovation, Aviation and Aerospace Development, and the Minister of State for Petroleum.
The Chairman of the Nigeria Revenue Service and energy expert Professor Yemi Oke are also part of the committee.
The Permanent Secretary of the Cabinet Affairs Office, Dr. John Chidiebere Ezeamama, serves as the committee’s secretary.
The Grid Asset Management Company is expected to play a central role in unlocking stranded electricity generation capacity across the country.
Its pilot phase will focus on the Benin-Lagos transmission corridor, one of the most critical electricity supply routes in Nigeria.
This corridor is responsible for delivering large volumes of electricity to Ogun and Lagos states, which remain Nigeria’s largest industrial and commercial hubs.
Under the pilot phase, GAMCO plans to optimise electricity production from three major National Integrated Power Project plants.
These plants include the Omotosho power plant with an installed capacity of 513 megawatts, the Olorunsogo plant with 754 megawatts, and the Ihovbor plant with 508 megawatts.
Combined, the project aims to recover at least 1,600 megawatts of previously underutilised electricity within the next 18 to 24 months.
As part of the strategy, GAMCO will also develop a new high-capacity 330 kilovolt double-circuit transmission line along the Benin-Lagos corridor.
This transmission infrastructure will help evacuate power from generation plants more efficiently and deliver it to key economic centres.
The company will operate as a fully government-owned commercial venture, with its shares held by the Ministry of Finance Incorporated.
Officials say the initiative is designed not only to improve electricity supply but also to attract private investment into the power sector.
The government believes that better asset management and improved transmission capacity will significantly reduce the amount of electricity that remains unused due to infrastructure constraints.
Currently, substantial federal government investments in National Integrated Power Project assets remain underutilised due to operational challenges and transmission bottlenecks.
As a result, significant generation capacity is often stranded and unable to reach consumers.
The new initiative seeks to address this problem by combining improved asset management, infrastructure expansion, and stronger coordination across the electricity value chain.
The Niger Delta Power Holding Company is expected to grant GAMCO concession and lease arrangements for the three selected power plants under the pilot programme.
Meanwhile, the Transmission Company of Nigeria will grant GAMCO the right to develop, finance, and operate the proposed independent transmission line along the corridor.
Officials say the long-term goal of the project is to create a scalable model that can be expanded to other transmission corridors and power plants across the country.
If successful, the model could serve as the foundation for long-term grid stabilisation and electricity sector expansion in Nigeria.
The federal government believes the initiative will contribute to improved electricity reliability, increased industrial productivity, and stronger investor confidence in Nigeria’s economy.
Ultimately, the project aligns with the broader economic development objectives of the administration and its commitment to improving energy access for households and businesses nationwide.
