In a significant move to address persistent challenges in Nigeria’s electricity sector, President Bola Ahmed Tinubu, has inaugurated an 11-member committee tasked with facilitating the establishment of the Grid Asset Management Company Limited (GAMCO). The initiative represents a strategic effort by the Federal Government to resolve long-standing issues related to stranded power generation, inefficient grid management, and transmission bottlenecks within the power sector.
The committee was inaugurated on Friday by the Chief of Staff to the President, Femi Gbajabiamila, acting on behalf of the President. The formation of the committee followed approval by the Federal Executive Council during its Wednesday meeting for the creation of GAMCO as a specialised vehicle to manage and optimise grid assets.
Background and Rationale
Nigeria’s electricity sector has historically struggled with a combination of structural, operational, and regulatory challenges. Despite significant investments in power generation and transmission infrastructure, a large portion of available electricity remains unutilised due to limitations in grid capacity and inefficiencies in power evacuation.
The proposed Grid Asset Management Company Limited is designed to address these problems by creating a specialised structure responsible for improving grid asset management and unlocking stranded power generation capacity.
According to Gbajabiamila, the establishment of GAMCO represents a “revolutionary step” by the Tinubu-led administration to transform Nigeria’s power infrastructure and ensure reliable electricity supply.
Composition of the Committee
The committee inaugurated by the President comprises 11 members drawn from key government institutions and technical experts in the energy sector. The Chief of Staff to the President, Femi Gbajabiamila, will serve as Chairman.
Other members include:
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The Attorney-General of the Federation and Minister of Justice
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The Minister of Power
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The Minister of Works
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The Minister of Finance
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The Minister of Communication and Digital Economy
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The Minister of Science, Technology and Innovation
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The Minister of Aviation and Aerospace Development
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The Minister of State for Petroleum
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The Chairman of the Nigeria Revenue Service
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Energy law expert Professor Yemi Oke
The Permanent Secretary of the Cabinet Affairs Office, Dr. John Chidiebere Ezeamama, will serve as the committee’s secretary.
Committee Mandate
The committee has been assigned a broad mandate to ensure the effective creation and operationalisation of GAMCO.
Its key responsibilities include:
1. Review of Legal and Institutional Frameworks
The committee will conduct a comprehensive review of existing laws, regulations, policies, and institutional arrangements governing the electricity value chain. This includes examining structures across generation, transmission, distribution, and electricity market operations.
2. Assessment of Electricity Reform Laws
Members will evaluate the implications of the Electricity Reform Laws of 2025 and related sector restructuring policies. Particular attention will be paid to issues concerning asset ownership, management frameworks, and regulatory oversight.
3. Identification of Legal and Regulatory Conflicts
Another critical responsibility is identifying areas where the proposed GAMCO framework may conflict with existing laws or regulatory frameworks. The committee will recommend adjustments to ensure legal consistency.
4. Evaluation of NIPP Assets
The committee will review the legal and operational status of generation assets owned by the Niger Delta Power Holding Company under the National Integrated Power Project.
Key plants under consideration include:
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Omotosho Power Plant
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Olorunsogo Power Plant
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Ihovbor Power Plant
These facilities will form the basis of the pilot phase for GAMCO operations.
5. Regulatory Interface Assessment
The committee will also evaluate how GAMCO’s mandate aligns with the statutory functions of the Nigerian Electricity Regulatory Commission to avoid duplication of regulatory authority.
6. Financial and Market Impact Analysis
Members will determine the fiscal and financial implications of the proposal, including possible subsidy exposure, electricity market liquidity, and revenue models.
7. Legislative Requirements
Finally, the committee will determine whether amendments to primary legislation, executive directives, or subsidy regulations are required to enable the successful implementation of GAMCO.
Structure and Ownership of GAMCO
The Federal Government intends to fully own GAMCO as a commercial venture. Ownership of the company will be held through the Ministry of Finance Incorporated (MOFI), ensuring government oversight while allowing the entity to operate with commercial discipline.
The company is expected to leverage private capital investment and modern asset management strategies to improve efficiency in the power sector.
Pilot Project: Benin–Lagos Transmission Corridor
GAMCO’s initial operations will focus on the Benin–Lagos transmission corridor, one of the most critical power evacuation routes in Nigeria.
This corridor is responsible for delivering bulk electricity supply to Ogun and Lagos States—two of the country’s largest industrial and commercial hubs, including the megacity of Lagos.
The pilot phase will focus on improving power evacuation from three major National Integrated Power Project plants:
| Power Plant | Installed Capacity |
|---|---|
| Omotosho Power Plant | 513 MW |
| Olorunsogo Power Plant | 754 MW |
| Ihovbor Power Plant | 508 MW |
Together, these plants represent over 1,700 MW of installed capacity, much of which remains underutilised due to transmission limitations.
Planned Infrastructure Development
To support its operations, GAMCO will develop a new high-capacity 330kV+ double-circuit transmission line along the Benin–Lagos corridor. This new infrastructure will complement existing transmission lines and significantly increase the system’s ability to evacuate power from generation plants to distribution networks.
Under the proposed arrangement:
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The Niger Delta Power Holding Company will grant GAMCO concession and lease agreements for the selected power plants.
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The Transmission Company of Nigeria will grant GAMCO the right to develop, finance, and operate the new transmission line.
Expected Outcomes
Through the pilot phase, GAMCO aims to recover at least 1,600 megawatts of stranded electricity capacity within 18 to 24 months.
If successful, the initiative will serve as a scalable model for expanding grid optimisation efforts across additional power plants and transmission corridors nationwide.
Key expected outcomes include:
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Improved electricity reliability and grid stability
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Increased utilisation of existing power generation assets
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Enhanced industrial productivity
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Job protection and economic growth
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Increased investor confidence in Nigeria’s power sector
Conclusion
The establishment of the Grid Asset Management Company Limited represents a major policy initiative aimed at resolving structural inefficiencies in Nigeria’s electricity sector. By focusing on grid optimisation, improved asset management, and strategic infrastructure development, the Tinubu administration seeks to unlock stranded power capacity and ensure reliable electricity supply for industries and households.
If effectively implemented, GAMCO could play a critical role in stabilising Nigeria’s power grid and advancing the broader economic development objectives of the government’s Renewed Hope Agenda.