President Tinubu inaugurates committee to incorporate Grid Asset Management Company (GAMCO)

KEY POINTS

• President Bola Tinubu inaugurated an 11-member committee on Friday to facilitate the incorporation of the proposed Grid Asset Management Company Ltd. (GAMCO).
• The Federal Government projects that GAMCO will recover at least 1,600 megawatts of stranded power within a timeframe of 18 to 24 months.
• The initiative follows the Federal Executive Council’s (FEC) approval on Wednesday and aims to address persistent challenges in electricity generation, grid management, and transmission.
• The pilot phase of the project will focus on the Omotosho, Olorunsogo, and Ihovbor power plants, which have a combined installed capacity exceeding 1,700 megawatts.

MAIN STORY

President Bola Tinubu, on Friday, inaugurated an 11-member committee at the State House in Abuja to facilitate the incorporation of the proposed Grid Asset Management Company Ltd. (GAMCO). The inauguration follows a Federal Executive Council (FEC) approval for the company’s establishment granted during its Wednesday meeting.

The initiative is designed to address the persistent challenges of stranded electricity generation, grid management, and transmission within the Nigerian power sector.

The Chief of Staff to the President, Mr. Femi Gbajabiamila, performed the inauguration on behalf of the President and will serve as the committee’s chairman. Gbajabiamila described the establishment of GAMCO as a “revolutionary step” toward optimizing and revolutionizing power generation, particularly the grid and transmission sector. The government projects that the company will recover at least 1,600 megawatts of stranded power within 18 to 24 months.

The committee is tasked with a comprehensive review of existing laws, regulations, and institutional frameworks governing Nigeria’s electricity value chain, including generation, transmission, and distribution. A critical part of their mandate involves examining the implications of the Electricity Reform Laws 2025 on asset ownership and regulatory oversight. The pilot phase will specifically target improved output and evacuation from the Omotosho, Olorunsogo, and Ihovbor plants, particularly along the Benin-Lagos transmission corridor.

WHAT’S BEING SAID

• “The proposed establishment of GAMCO is one of the revolutionary steps taken by Mr President and this administration in the all-important power sector,” stated Mr. Femi Gbajabiamila, Chief of Staff to the President.
• Gbajabiamila noted the committee will “determine the fiscal, financial and market implications of the proposal, including subsidy exposure, market liquidity and revenue frameworks”.
• The goal is to “optimise and revolutionise power generation, particularly the grid and transmission sector”.

WHAT’S NEXT

• The committee will evaluate if the operationalization of GAMCO requires amendments to existing legislation or regulatory directives.
• Members will assess the legal status and contractual obligations of Niger Delta Power Holding Company and National Integrated Power Project assets.
• The initiative will move toward optimizing electricity evacuation along the Benin-Lagos transmission corridor to supply major industrial centers.

BOTTOM LINE

The Bottom Line is that the Federal Government is establishing GAMCO as a strategic vehicle to unlock 1,600 megawatts of stranded power. By centralizing grid asset management and reviewing the 2025 reform laws, the administration aims to resolve long-standing transmission bottlenecks that have hindered Nigeria’s industrial growth.

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