The Nigerian government has constituted a committee to oversee the incorporation of a new government-owned company designed to manage critical grid infrastructure and recover stranded electricity across the nation’s power system.
The Special Adviser to the President, Bayo Onanuga made this known through his official X (formerly Twitter) page on Friday.
The government inaugurated an 11-member committee to facilitate the establishment of the Grid Asset Management Company Limited (GAMCO), the name of the proposed state-backed firm.
The President’s Chief of Staff, Femi Gbajabiamila, who represented the President at the ceremony, presided over the event.
The committee’s formation followed approval by the Federal Executive Council earlier in the week for the creation of the company as part of efforts to address longstanding challenges in Nigeria’s electricity sector.
Speaking during the inauguration, Gbajabiamila said the establishment of GAMCO forms part of the administration’s efforts to address inefficiencies in electricity transmission and grid management.
“The proposed establishment of GAMCO is one of the revolutionary steps taken by Mr President and this administration in the all-important power sector.
“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,” he said.
According to the presidency, the company will operate as a commercial entity fully owned by the federal government, with its shares held by the Ministry of Finance Incorporated.
The company is expected to focus on recovering stranded generation capacity by improving transmission evacuation from selected power plants and building new high-capacity infrastructure along key transmission corridors.
Committee to review power sector rules
The committee will conduct a comprehensive review of existing regulations and policies across the electricity value chain, including generation, transmission, distribution, and market operations.
It will also examine the implications of recent electricity reform laws and unbundling arrangements on asset ownership, management, and regulatory oversight.
According to the presidency, the review will identify areas where the proposed GAMCO framework may overlap or conflict with existing regulations.
In addition, the committee will assess the legal status and ownership structure of assets under the Niger Delta Power Holding Company, which oversees the government-backed National Integrated Power Project.
The Chief of Staff said the committee’s work would help clarify regulatory responsibilities, particularly in relation to the Nigerian Electricity Regulatory Commission, which supervises the country’s electricity market.
The panel will also examine fiscal and financial implications of the proposal, including potential subsidy exposure, market liquidity, and revenue structures.
Details of the project
As part of its initial rollout, GAMCO is expected to focus on optimising power output from three government-owned power plants built under the National Integrated Power Project.
These include the Omotosho, Olorunsogo and Ihovbor plants, which together account for more than 1,700 megawatts of installed generation capacity.
According to the presidency, the company plans to recover at least 1,600 MW of stranded electricity within 18 to 24 months by improving transmission evacuation from the plants.
The initiative will begin with the Benin–Lagos transmission corridor, one of the most important electricity supply routes serving Nigeria’s commercial and industrial centres.
As part of the plan, GAMCO will develop a new high-capacity 330kV double-circuit transmission line along the corridor to strengthen power delivery into Lagos and Ogun states.
The government said the corridor currently carries bulk electricity supply to both states, which host major industrial clusters and commercial activities.
Under the proposed structure, the Transmission Company of Nigeria will grant GAMCO the right to develop and operate the new transmission line.
