March 04, (THEWILL) — President Bola Tinubu has initiated plans to establish a Grid Asset Management Company (GAMCO) as part of efforts to tackle Nigeria’s persistent electricity challenges, particularly within the transmission segment of the power sector.
The announcement was made on Wednesday by Mohammed Idris, the Minister of Information and National Orientation, during a briefing with State House correspondents, following the Federal Executive Council (FEC) meeting presided over by the President.
Idris said the proposal was contained in a memorandum personally presented by President Tinubu for council deliberation.
According to the minister, the initiative is to strengthen the transmission component of Nigeria’s electricity value chain, widely regarded as the critical bottleneck in the country’s quest for stable and reliable power.
“You recall that since the deregulation of the power sector, it has been divided into three categories: generation, transmission, and distribution. The President has identified that the main challenge in solving the power problem lies largely in the transmission section”, Idris explained.
The proposed GAMCO will be tasked with managing and reinforcing the national electricity grid to improve power delivery across the country. To guide the initiative, the FEC approved the formation of an inter-ministerial committee to develop the operational framework for the company.
The members of the committee include the Minister of Power, Minister of State for Gas, Minister of Works, Minister of Finance, Chairman of the Nigerian Revenue Service, Minister of Science and Technology, and the Attorney-General of the Federation, with the option to co-opt other stakeholders as necessary.
Idris stated that the committee will examine all regulatory, legal, and investment matters associated with the establishment of GAMCO, including the interests of existing investors and operators in the sector. “All enabling parameters will be considered, the relevant laws will be reviewed, and the investments of current operators will be taken into account,” he said.
The minister emphasised that the proposal remains a work in progress, and the committee’s recommendations will be submitted to the National Assembly for legislative approval where required. He also noted that the initiative forms part of the administration’s broader strategy to consolidate economic reforms and accelerate industrialisation, with a focus on sustaining economic growth and improving productivity.
Idris highlighted recent improvements in Nigeria’s macroeconomic indicators, including rising foreign reserves and easing inflation, which he said provide a stronger foundation for reforms in the energy sector.
“The President believes that for Nigeria to truly industrialise, the power sector must be fixed. That is why he has taken the initiative to establish the Grid Asset Management Company to address the country’s electricity challenges”, he said.
In addition to energy sector reforms, the FEC also approved an additional exit benefit scheme for retiring civil servants under the contributory pension scheme.
The scheme will provide retiring employees with benefits of up to 100% of their total emoluments, in line with Section 4(4)(a) of the Pension Reform Act, to enhance efficiency and motivation within the civil service.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
