President Bola Tinubu has inaugurated an 11-member committee to drive the establishment of the Grid Asset Management Company Limited (GAMCO), a new initiative aimed at addressing Nigeria’s persistent power sector challenges.
The committee was constituted following the approval of the company’s establishment by the Federal Executive Council – Nigeria, which endorsed the proposal to create GAMCO as part of efforts to tackle stranded power generation, transmission bottlenecks, and grid management inefficiencies.
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Earlier, the Federal Executive Council had approved the establishment of a Grid Asset Management Company to address Nigeria’s persistent power transmission challenges.
The Special Adviser to the President (Information and Strategy), Bayo Onanuga in a statement on Friday disclosed this.
“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 said.
He urged members of the committee to remain aligned with the President’s vision and strictly adhere to their mandate.
The committee is expected to conduct a comprehensive review of existing laws, regulations, policies, and institutional frameworks governing 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 planned for the pilot phase of the project.
The committee will also evaluate the relationship between the proposed company and the Nigerian Electricity Regulatory Commission, including the fiscal, financial, and market implications of the initiative, such as subsidy exposure, market liquidity, and revenue structures.
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 is designed to recover and optimise stranded electricity generation capacity using the Benin–Lagos transmission corridor as a 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 focus on 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 the success of the 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, leading to stranded capacity.
The new company will seek 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 grant GAMCO 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.
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The government said the project is expected to improve industrial productivity, protect jobs, enhance investor confidence, and boost household welfare in line with the administration’s economic agenda.
Punch