President Bola Tinubu has initiated steps toward the establishment of a Grid Asset Management Company (GAMCO) as part of efforts to resolve longstanding electricity challenges in Nigeria, particularly within the transmission segment of the power sector.
The Minister of Information and National Orientation, Mohammed Idris, disclosed this on Wednesday while briefing State House correspondents after the Federal Executive Council (FEC) meeting chaired by the President.
According to the minister, the proposal was presented to the Council through a memorandum submitted by the President for deliberation. The initiative, he explained, is designed to strengthen the transmission component of Nigeria’s electricity value chain, which the government considers the most critical bottleneck in achieving stable and reliable power supply nationwide.
Idris noted that following the deregulation of the power sector, it was unbundled into three core segments — generation, transmission and distribution. While reforms have been undertaken across the value chain, he said the transmission arm remains the weakest link, limiting the overall performance of the sector.
He explained that the proposed Grid Asset Management Company will be responsible for managing and reinforcing the national electricity grid to enhance efficiency and improve power delivery across the country.
To advance the plan, the Federal Executive Council approved the constitution of an inter-ministerial committee tasked with developing the operational framework for the proposed company. The committee is expected to examine all regulatory, legal and investment considerations tied to the creation of the new entity.
The minister added that the panel may co-opt relevant stakeholders where necessary. It will also review existing laws and assess the interests and investments of operators currently active in the transmission space to ensure that the process is inclusive and legally sound.
He described the proposal as a work in progress, noting that the committee’s recommendations will be forwarded to the National Assembly where legislative backing is required.
Idris stated that the initiative aligns with the administration’s broader economic reform agenda, stressing that stabilising the power sector remains central to Nigeria’s industrialisation drive. He maintained that consistent electricity supply is fundamental to boosting productivity, encouraging investment and sustaining economic growth.
The minister further highlighted recent improvements in macroeconomic indicators, including growth in foreign reserves and easing inflationary pressures, saying these developments provide a stronger foundation for reforms within the energy sector.
In a related development, the Federal Executive Council also approved the implementation of an additional exit benefit scheme for retiring civil servants in treasury-funded ministries, departments and agencies operating under the contributory pension scheme.
Under the new arrangement, retiring public servants will receive benefits of up to 100 per cent of their total emoluments, in accordance with Section 4(4)(a) of the Pension Reform Act. The measure, according to Idris, is aimed at enhancing morale, efficiency and welfare within the civil service, particularly for officers approaching retirement.
Tinubu Moves to Establish Grid Asset Management Company to Tackle Power Transmission Challenges
