Tinubu inaugurates committee on grid asset company to boost power transmission

President Bola Ahmed 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 electricity transmission and grid management.

The committee was inaugurated on Friday by the President’s Chief of Staff, Femi Gbajabiamila, following the approval of the company’s creation by the Federal Executive Council earlier this week.

Speaking during the inauguration, Gbajabiamila described the proposed company as a major step toward transforming Nigeria’s power sector, particularly in the areas of grid management and electricity transmission.

“The proposed establishment of GAMCO is one of the revolutionary steps taken by Mr President and this administration in the all-important power sector,” he said. “We are here for the inauguration of the Committee on Grid Asset Management Company (GAMCO), which is basically to optimise and revolutionise power generation, especially the grid and transmission sector.”

According to him, the committee will play a crucial role in aligning the project with the administration’s broader reforms in the electricity sector.

The panel is tasked with reviewing existing laws, regulations, and institutional frameworks governing the electricity value chain, including generation, transmission, distribution, and market operations. It will also assess the implications of the Electricity Reform Laws (2025) on asset ownership, management, and regulatory oversight.

The committee will further evaluate the legal status and contractual arrangements of assets owned by the Niger Delta Power Holding Company under the National Integrated Power Project, particularly the Omotosho, Olorunsogo, and Ihovbor power plants, which have been selected for the pilot phase of the GAMCO initiative.

In addition, the panel will examine how GAMCO’s proposed functions will interact with the responsibilities of the Nigerian Electricity Regulatory Commission, as well as analyse the financial and market implications of the new structure, including potential subsidy exposure and market liquidity.

Gbajabiamila will chair the committee, while members include the Attorney-General of the Federation and Minister of Justice, the Ministers of Power, Works and Finance, the Ministers of Communications and Digital Economy, Science, Technology and Innovation, Aviation and Aerospace Development, and the Minister of State for Petroleum.

Other members are the Chairman of the Nigeria Revenue Service and energy expert Professor Yemi Oke. The Permanent Secretary of the Cabinet Affairs Office, Dr John Chidiebere Ezeamama, will serve as secretary.

The proposed Grid Asset Management Company will be fully owned by the Federal Government as a commercial entity, with shares held by the Ministry of Finance Incorporated.

According to the government, the company’s primary objective is to recover and optimise stranded power generation capacity by improving transmission infrastructure and mobilising private sector investment.

The initiative will begin with a pilot project along the Benin-Lagos transmission corridor, a key power evacuation route supplying electricity to Ogun and Lagos states, two of Nigeria’s largest industrial and commercial hubs.

The pilot phase will focus on optimising output from three National Integrated Power Plants: Omotosho with an installed capacity of 513 megawatts, Olorunsogo with 754 megawatts, and Ihovbor with 508 megawatts.

Through the project, GAMCO is expected to recover at least 1,600 megawatts of stranded power within 18 to 24 months. The company also plans to develop a new high-capacity 330KV double-circuit transmission line along the same corridor to enhance electricity evacuation and grid stability.

Officials say the long-term goal is to create a scalable model that can be replicated across other power plants and transmission corridors, strengthening Nigeria’s electricity infrastructure and improving energy reliability for households and industries.