The Nigerian government has approved the creation of a new entity, the Grid Asset Management Company (GAMCO), to tackle the country’s persistent power challenges.
The move, proposed by President Bola Tinubu, aims to fix the longstanding challenges in the nation’s electricity supply, especially the transmission segment.
The approval for the company’s establishment was granted during the Federal Executive Council meeting on Wednesday, March 4, 2026.
According to a statement by Tinubu’s spokesman, Bayo Onanuga, the president, on Friday, March 6, inaugurated an 11-member committee to oversee the incorporation of GAMCO.
The Chief of Staff to the President, Femi Gbajabiamila, who performed the inauguration on behalf of Tinubu, stressed that the committee was critical to the realisation of the current administration’s goals in Nigeria’s power sector.
Gbajabiamila described the proposed establishment of GAMCO as one of the revolutionary steps taken by the President and the current administration to address power sector challenges, particularly the problems of stranded power, grid management and transmission.
“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,” the Chief of Staff stated.
He called on members to align with the President’s vision in proposing the formation of GAMCO and to stick to the committee’s mandate.
Highlighting the core functions of the committee, the Chief of Staff said it will conduct a comprehensive review of existing laws, regulations, policies, and institutional frameworks governing the electricity value chain, including generation, transmission, distribution, and market operations.
He further stated that the committee will also examine the implications of the Electricity Reform Laws (2025) and related unbundling arrangements on asset ownership, management, and regulatory oversight.
“It will identify areas of conflict, overlap, or inconsistency between the proposed GAMCO framework and extant legal and regulatory instruments,” the statement said.
It added that the committee will also review the legal status, ownership structure, and contractual obligations of the Niger Delta Power Holding Company (NDPHC) and National Integrated Power Project (NIPP) assets, including the Omotosho, Olorunshogo, and Ihovbor plants, which GAMCO plans to use for its pilot phase.
Other functions the committee will play include evaluating the interface between GAMCO’s proposed mandate and the statutory functions of the Nigeria Electricity Regulatory Commission, and determining the fiscal, financial, and market implications of the proposal, including subsidy exposure, market liquidity, and revenue frameworks.
It further stated that the committee will determine whether the establishment and operationalisation of GAMCO require amendments to primary legislation, subsidy regulations, and executive directives.
Constitution of the Committee
The Chief of Staff to the President is the Chairman of the Committee, with the Attorney–General of the Federation and Minister of Justice, and Ministers of Power, Works, and Finance as members.
Others include the Ministers of Communication and Digital Economy, Science, Technology and Innovation, Aviation and Aerospace Development, the Minister of State (Petroleum), Chairman of the Nigeria Revenue Service, and energy expert Professor Yemi Oke.
The Permanent Secretary of the Cabinet Affairs Office, Dr. John Chidiebere Ezeamama, is the committee’s secretary.
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The Presidency revealed that GAMCO aims to recover and optimise stranded power generation using the Benin-Lagos transmission corridor as a pilot phase.
It further stated that the initiative will address Nigeria’s power sector challenges through optimisation, private capital mobilisation, and disciplined asset management, ultimately improving electricity reliability and national competitiveness.
GAMCO will be fully owned by the Federal Government as a commercial venture, with the shares held by the Ministry of Finance Incorporated.
“The company will modernise transmission evacuation, starting from the most critical axis within Nigeria’s power system,” the Presidency said.
The Benin-Lagos transmission corridor evacuates bulk power supply to Ogun and Lagos states, Nigeria’s largest industrial and commercial centres.
It said the pilot phase will focus on optimising power output from the Omotosho, Olorunsogo and Ihovbor National Integrated Power Plants (NIPP plants). Omotoso’s installed capacity is 513MW, Olorunsogo’s 754 MW, and Ihovbor’s 508 MW.
GAMCO is projected 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 success of the new company during the pilot phase will lead to the establishment of a scalable model that can be extended across additional plants and corridors, forming the backbone of long-term grid stabilisation and expansion.
“At present, substantial Federal Government investment in NIPP generation assets remains under-optimised due to operational inefficiencies and transmission evacuation bottlenecks, resulting in stranded capacity and suboptimal return on public capital.
“GAMCO plans to unlock the stranded power of the three selected NIPP and develop a parallel high-capacity transmission corridor along the Benin-Lagos axis, thus translating underperforming national assets into reliably delivered megawatts,” the Presidency highlighted.
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It clarified that part of the proposal is for the Niger Delta Power Holding Company to grant GAMCO the concession and lease arrangements for the three plants.
It has also been proposed that TCN will grant GAMCO the right to develop, finance, and operate a greenfield 330KV+ double-circuit independent power transmission line along the identified corridor.
The Minister of Information and National Orientation, Mohammed Idris, had stated that the core problem in Nigeria’s electricity value chain lies in the transmission segment.
While generation and distribution were unbundled and privatised over a decade ago, the transmission infrastructure, managed by the state-owned Transmission Company of Nigeria (TCN), has remained a bottleneck.
The proposed GAMCO is designed to be a specialised entity focused solely on managing, operating, and strengthening the national grid. The government believes that professionalising grid management is essential for economic stability and industrial growth.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
