President Bola Ahmed Tinubu has proposed the establishment of a Grid Asset Management Company (GAMCO) to address persistent challenges in Nigeria’s electricity transmission network.
The development was disclosed by the Minister of Information and National Orientation, Mohammed Idris, after the Federal Executive Council (FEC) meeting on Wednesday at the Presidential Villa, Abuja.
According to Idris, the president presented the proposal directly in a memorandum to the council for deliberation, highlighting the need to strengthen the transmission segment, widely regarded as the weakest link in the power sector.
What the Minister is saying
The proposal aims to tackle longstanding issues in the electricity value chain, particularly in transmission, to support industrialisation and a reliable power supply.
- “The proposal was contained in a memorandum presented to the council by President Tinubu himself for deliberation,” Idris said.
- “Since the deregulation of the power sector, the sector is divided into three categories: generation, transmission and distribution. The president has seen that where the problem largely lies in our quest to solve the power challenge is in the transmission segment.”
- Idris explained that the initiative reflects the administration’s commitment to fixing the power sector as a prerequisite for Nigeria’s industrial growth.
The minister added that the GAMCO framework will explore regulatory, legal, and investment models while protecting the interests of existing investors and operators.
More Insights
To advance the proposal, the council approved the establishment of an inter-ministerial committee that will develop the operational framework for GAMCO.
- The committee will include the Minister of Power, Minister of State for Gas, Ministers of Works, Finance, and Science and Technology, the Chairman of the Nigerian Revenue Service, and the Attorney-General of the Federation.
- It will examine key issues relating to regulation, legal frameworks, investment models, and the role of existing sector players.
- The committee’s recommendations will be forwarded to the National Assembly for legislative approval if required.
The proposal comes against the backdrop of recurring challenges in Nigeria’s power supply, including two national grid collapses in December 2025, which disrupted electricity across much of the country and affected economic and social activities.
The president believes that a functional transmission network is critical to industrialisation and economic growth.
- The Grid Asset Management Company is intended to strengthen the weakest link in Nigeria’s electricity sector, ensuring more reliable power distribution.
- The initiative is part of broader efforts to stabilise the electricity value chain, attract investments, and improve service delivery.
- Separately, the council approved an additional exit benefit package for retiring civil servants under the Contributory Pension Scheme, allowing eligible retirees in treasury-funded agencies to receive up to 100 per cent of their total emoluments, in line with the Pension Reform Act.
What you should know
Despite trillions of naira invested in Nigeria’s electricity sector, repeated national grid collapses in 2026 have renewed concerns that funding alone cannot fix the country’s long-standing power crisis.
- Energy experts, system operators, and industry analysts have raised concerns following fresh system failures this year.
- In the past two years, the Federal Government has rolled out several large-scale financial interventions aimed at stabilising the electricity market.
- These include a N4 trillion bond programme to clear legacy debts owed to electricity generation companies and gas suppliers.
