New initiative targets stranded electricity capacity and transmission bottlenecks across Nigeria’s grid…..
President Bola Tinubu has inaugurated an 11-member committee to spearhead the creation of the Grid Asset Management Company Limited (GAMCO), a new government initiative designed to address long-standing inefficiencies in Nigeria’s electricity transmission system.
The move follows approval by the Federal Executive Council of Nigeria to establish the company as part of broader reforms aimed at improving grid management and unlocking stranded electricity generation across the country.
The committee was inaugurated by Femi Gbajabiamila, Chief of Staff to the President, who represented Tinubu at the event.
According to a statement issued Friday by presidential spokesman Bayo Onanuga, the initiative marks a major step in the administration’s efforts to strengthen Nigeria’s power sector.
Power sector reform agenda
Gbajabiamila described the proposed company as a transformative intervention designed to improve the efficiency of 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,” he said.
He urged members of the committee to remain focused on their mandate and ensure their recommendations align with the government’s broader energy reform agenda.
Committee’s responsibilities
The newly inaugurated committee has been tasked with reviewing the legal, regulatory, and institutional frameworks governing Nigeria’s electricity industry.
This includes examining existing laws, policies, and market structures affecting power generation, transmission, distribution, and electricity market operations.
The panel will also assess the impact of the Electricity Reform Laws 2025 on asset ownership, regulatory oversight, and operational management across the sector.
Part of its work will involve identifying overlaps or conflicts between current legal provisions and the proposed framework for the Grid Asset Management Company.
Key power plants under review
Among the facilities expected to feature in the initial phase of the project are power plants owned by the Niger Delta Power Holding Company under the National Integrated Power Project.
These include:
- Omotosho Power Plant (513MW)
- Olorunsogo Power Plant (754MW)
- Ihovbor Power Plant (508MW)
The plants are expected to serve as the pilot assets for the new company’s operations.
Government ownership and pilot phase
The proposed Grid Asset Management Company Limited will operate as a government-owned commercial enterprise, with shares held through the Ministry of Finance Incorporated.
The project’s pilot phase will focus on recovering stranded electricity generation capacity along the Benin–Lagos transmission corridor, a critical axis in Nigeria’s power system that supplies electricity to major industrial hubs.
According to the government, the corridor plays a key role in evacuating electricity to Lagos State and Ogun State, which together host some of the country’s largest industrial and commercial clusters.
The plan includes the development of a high-capacity 330kV double-circuit transmission line along the corridor to improve power evacuation.
Targeting 1,600MW recovery
Officials say the pilot programme aims to unlock at least 1,600 megawatts of stranded electricity capacity within 18 to 24 months.
If successful, the model could be expanded to other transmission corridors and generation facilities across the country to support long-term grid stability.
Addressing stranded power
The government noted that despite heavy investments in generation assets under the National Integrated Power Project, much of the installed capacity remains under-utilised due to transmission constraints and operational inefficiencies.
Through concession and lease arrangements, the Niger Delta Power Holding Company will grant GAMCO operational rights over the selected plants.
Meanwhile, the Transmission Company of Nigeria will permit the development, financing, and operation of the new transmission infrastructure along the Benin–Lagos route.
Economic impact
Officials say the initiative could significantly improve power supply to key economic centres, boosting industrial productivity and investor confidence.
The government also expects the project to support job protection, enhance electricity reliability for households, and contribute to broader economic growth.
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