FG MOVES TO CREATE GRID ASSET MANAGEMENT COMPANY TO FIX NIGERIA’S EPILEPTIC POWER SUPPLY

The Federal Government has announced plans to establish a Grid Asset Management Company (GAMCO) as part of efforts to address Nigeria’s persistent electricity challenges and stabilise the national power grid. The initiative was disclosed after a meeting of the Federal Executive Council chaired by Bola Ahmed Tinubu in Abuja. 

The Minister of Information and National Orientation, Mohammed Idris, said the proposal was presented to the council through a memorandum submitted by the president. According to him, the planned company is intended to strengthen the transmission segment of Nigeria’s electricity value chain, which has been identified as the weakest link in the country’s power system. 

WHY GOVERNMENT IS INTRODUCING GAMCO

Nigeria’s power sector was unbundled into three key segments generation, transmission, and distribution following deregulation reforms. While generation and distribution were largely privatised, the transmission arm has continued to struggle with ageing infrastructure, grid collapses, and limited capacity to transmit electricity from power plants to consumers. 

Government officials said the proposed Grid Asset Management Company would focus on improving transmission infrastructure and ensuring that electricity generated across the country can be efficiently delivered to distribution companies and end users. The move is seen as part of broader reforms aimed at fixing structural challenges in the electricity industry. 

INTER-MINISTERIAL COMMITTEE SET UP

To facilitate the creation of the new entity, the Federal Executive Council approved the formation of an inter-ministerial committee tasked with developing the operational framework for GAMCO. The committee will include ministers responsible for power, finance, works, science and technology, as well as other relevant agencies involved in the energy sector. 

Officials said the committee would examine legal, regulatory, and investment issues related to the new company, including the interests of existing investors and operators within the power sector. Its recommendations will be forwarded to the National Assembly if legislative approval becomes necessary for the initiative. 

POWER SECTOR REFORM AND INDUSTRIAL GROWTH

Government officials stressed that fixing electricity supply remains critical to Nigeria’s economic development and industrial growth. According to the minister, the administration believes improving the transmission network will play a decisive role in addressing the country’s long-standing problem of unstable electricity supply. 

The proposal to establish GAMCO forms part of wider economic reforms aimed at strengthening infrastructure and improving productivity across key sectors of the Nigerian economy.