President Bola Tinubu has inaugurated an 11-member committee to oversee the establishment of the Grid Asset Management Company Limited (GAMCO), a new initiative aimed at addressing persistent challenges in Nigeria’s power sector.
The committee was formed following approval by the Federal Executive Council, which endorsed the creation of GAMCO to tackle issues such as stranded power generation, transmission bottlenecks, and inefficiencies in grid management.
Earlier, the Federal Executive Council had approved the establishment of a Grid Asset Management Company to help resolve ongoing power transmission challenges in the country.
According to Femi Gbajabiamila, who inaugurated the committee on behalf of the President, the initiative represents a significant reform step in Nigeria’s electricity sector.
The Special Adviser to the President (Information and Strategy), Bayo Onanuga, disclosed in a statement on Friday that “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 optimise and revolutionise power generation, and in particular, the grid and transmission sector.”
He urged the committee members to remain aligned with the President’s vision and strictly adhere to their mandate.
The committee is tasked with conducting a comprehensive review of existing laws, regulations, policies, and institutional frameworks that govern the electricity value chain, including generation, transmission, distribution, and market operations. It will also examine the implications of the Electricity Reform Laws (2025) on asset ownership, management structures, and regulatory oversight, while identifying areas of conflict, overlap, or inconsistency between the proposed GAMCO framework and existing legal instruments.
Key assets under review include facilities owned by the Niger Delta Power Holding Company and the National Integrated Power Project, particularly the Omotosho, Olorunsogo, and Ihovbor power plants, which are earmarked for the pilot phase.
The committee will also assess the relationship between GAMCO and the Nigerian Electricity Regulatory Commission, including fiscal, financial, and market implications, such as subsidy exposure, market liquidity, and revenue structures. Furthermore, it will determine whether establishing GAMCO will require amendments to primary legislation, subsidy regulations, or executive directives.
The committee is chaired by the President’s Chief of Staff and includes the Lateef Fagbemi, 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 expert Yemi Oke, and the Permanent Secretary of the Cabinet Affairs Office, John Chidiebere Ezeamama, who serves as secretary.
The proposed Grid Asset Management Company Limited will operate as a fully government-owned commercial venture, with shares held through the Ministry of Finance Incorporated.
The initiative aims to recover and optimise stranded electricity generation capacity, using the Benin–Lagos transmission corridor as the pilot phase.
“The company will modernise 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 centres,” the statement said.
The pilot phase will prioritise optimising output from 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 added that a successful pilot phase would allow the model to be expanded to other power plants and transmission corridors to support long-term grid stabilisation.
According to the government, substantial investments in NIPP generation assets have remained under-optimised due to operational inefficiencies and transmission evacuation constraints, resulting in stranded capacity.
The new company will aim to unlock stranded power from the selected plants and develop a parallel high-capacity transmission corridor along the Benin–Lagos axis.
As proposed, the Niger Delta Power Holding Company will provide GAMCO with concession and lease arrangements for the three plants, while the Transmission Company of Nigeria will allow the development, financing, and operation of a 330KV+ double-circuit transmission line along the corridor.
The government stated that the project is expected to improve industrial productivity, safeguard jobs, enhance investor confidence, and boost household welfare in line with the administration’s economic agenda.
