Tinubu Establishes Panel to Oversee National Electricity Infrastructure

President Bola Tinubu has launched an 11-member committee tasked with establishing the Grid Asset Management Company Limited, a new entity designed to tackle Nigeria's enduring power sector challenges, following the Federal Executive Council's approval of the company's creation.

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The committee's formation is a direct result of the Federal Executive Council's earlier endorsement of the proposal to create GAMCO, aimed at addressing issues such as stranded power generation, transmission bottlenecks, and grid management inefficiencies in Nigeria.

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Femi Gbajabiamila, who inaugurated the committee on behalf of the President, noted that this initiative represents a significant reform step in the country's electricity sector, marking a major effort to revamp the power transmission landscape.

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According to Bayo Onanuga, Special Adviser to the President on Information and Strategy, the proposed establishment of GAMCO is a groundbreaking move by the President and the administration to transform the power sector, with the goal of optimising and revolutionising power generation and transmission.

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Onanuga urged the committee members to align themselves with the President's vision and adhere strictly to their mandate, ensuring the successful establishment of GAMCO and the achievement of its objectives.

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The committee is expected to conduct a comprehensive review of existing laws, regulations, and policies governing the electricity value chain, including generation, transmission, distribution, and market operations, as well as examine the implications of the Electricity Reform Laws (2025) on asset ownership and management structures.

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The committee will also assess the relationship between GAMCO and the Nigerian Electricity Regulatory Commission, including fiscal, financial, and market implications, such as subsidy exposure, market liquidity, and revenue structures, to ensure a seamless integration of the new company into the existing power sector framework.

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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 slated for the pilot phase of the project, with the goal of recovering and optimising stranded electricity generation capacity.

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The committee, chaired by the President's Chief of Staff, comprises prominent members, including Lateef Fagbemi, Ministers of Power, Works, and Finance, as well as the Ministers of Communication and Digital Economy, Science, Technology and Innovation, Aviation and Aerospace Development, and the Minister of State for Petroleum.

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Other committee 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, bringing a diverse range of expertise to the table to drive the establishment of GAMCO.

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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, aiming to recover and optimise stranded electricity generation capacity using the Benin–Lagos transmission corridor as a pilot phase.

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The initiative is designed to modernise transmission evacuation, starting from the most critical axis within Nigeria's power system, with the Benin-Lagos transmission corridor evacuating bulk power supply to Ogun and Lagos states, Nigeria's largest industrial and commercial centres.

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The pilot phase will focus on optimising output from the Omotosho (513MW), Olorunsogo (754MW), and Ihovbor (508MW) plants, with GAMCO projecting the recovery of 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.

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The success of the pilot phase is expected to enable the expansion of the model to other power plants and transmission corridors, supporting long-term grid stabilisation and addressing the issue of stranded capacity, which has plagued the power sector due to operational inefficiencies and transmission evacuation constraints.

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The government has invested substantially in NIPP generation assets, but these investments have remained under-optimised due to operational inefficiencies and transmission evacuation constraints, leading to stranded capacity, which the new company aims to unlock from the selected plants.

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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, facilitating the recovery of stranded power and the development of a parallel high-capacity transmission corridor.

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The project is expected to have a positive impact on the economy, improving industrial productivity, protecting jobs, enhancing investor confidence, and boosting household welfare, in line with the administration's economic agenda, by addressing the long-standing power sector challenges and unlocking the full potential of Nigeria's electricity generation and transmission capabilities.