New entity expected to overhaul the country’s fragile electricity transmission network as government also introduces enhanced retirement benefits for civil servants…..
The Federal Executive Council has approved plans to establish a Grid Asset Management Company (GAMCO) as part of renewed efforts to address long-standing transmission challenges in Nigeria’s electricity sector.
The Minister of Information and National Orientation, Mohammed Idris, announced the decision on Wednesday after the council meeting held at the State House in Abuja.
According to him, the initiative reflects the determination of President Bola Tinubu to tackle what has been widely regarded as the weakest link in Nigeria’s power value chain, the transmission network.
Idris explained that the president is proposing legislation to create the Grid Asset Management Company, which would focus specifically on improving the management and development of the country’s transmission infrastructure.
“The President has observed that in our efforts to resolve the power sector challenges, the major bottleneck lies in the transmission segment,” the minister said. “That is why the idea of establishing the Grid Asset Management Company has been brought forward.”
To drive the process, the Federal Executive Council has constituted an inter-ministerial committee tasked with working out the framework for the company’s establishment.
The committee includes the Ministers of Power, State for Gas, Works, Finance, and Science and Technology, as well as the Chairman of the Federal Inland Revenue Service and the Secretary to the Government of the Federation, alongside other co-opted members.
Idris said the committee will examine the regulatory framework, existing legislation governing the power sector, and the investments made by stakeholders currently operating within the transmission space.
Their recommendations will eventually be presented to the National Assembly to facilitate the necessary legislation required to formally establish the new entity.
He described the initiative as a “work in progress,” noting that the government intends to carefully assess all legal, regulatory, and investment considerations before finalising the structure of the company.
The minister also linked the reform to the administration’s broader economic agenda, arguing that improving electricity supply remains critical to Nigeria’s industrial development.
“As Nigeria stabilises and the economy improves, with foreign reserves rising to over $50 billion, the highest level in more than eight years, the President believes that true industrialisation cannot happen unless the power sector is fixed,” Idris said.
Nigeria’s electricity sector was unbundled and partially privatised in 2013 during the administration of former President Goodluck Jonathan.
The reform divided the sector into three main components: generation, transmission, and distribution. While generation and distribution assets were sold to private investors, the transmission network remained under government control through the Transmission Company of Nigeria.
The company previously operated under a management contract with Manitoba Hydro International of Canada, which ended in 2019.
Despite the reforms, the transmission network has continued to struggle with limited capacity and frequent grid collapses, preventing electricity generated by power plants from reaching consumers effectively.
Meanwhile, the council also approved a new exit benefit scheme aimed at encouraging voluntary retirement among civil servants in ministries, departments, and agencies funded by the federal treasury.
According to Idris, the policy will provide additional retirement benefits of up to 100 percent of a worker’s total emoluments for eligible civil servants who choose to retire.
He said the scheme is consistent with the provisions of the Pension Reform Act governing the Contributory Pension Scheme.
The additional benefit will be separate from existing pension entitlements accumulated through monthly employee deductions and employer contributions.
Officials believe the initiative could help rejuvenate Nigeria’s civil service by encouraging older personnel to step aside voluntarily, thereby creating opportunities for younger officers to move into leadership positions.
The minister noted that the reform forms part of a broader effort by the government to improve efficiency within the public sector while gradually reducing the federal wage bill.
Nigeria’s civil service has long faced criticism for being overly bureaucratic and resistant to reform, with analysts frequently pointing to an aging workforce as a barrier to innovation and productivity.
However, Idris said both the power sector initiative and the new retirement benefit programme are still in the early stages of development, with further details on eligibility requirements and implementation timelines expected to emerge as the policies are refined.
About the Author
