President Bola Ahmed Tinubu has launched plans to elish a Grid Asset Management Company GAMCO to address persistent electricity challenges in Nigeria, particularly in the transmission segment of the power sector.
The Minister of Information and National Orientation, Mohammed Idris, disclosed the development on Wednesday after the Federal Executive Council FEC meeting presided over by the President at the State House, Abuja. According to Idris, the proposal aims to strengthen the transmission component of Nigeria’s electricity value chain, considered the most critical bottleneck to le power supply.
Since the deregulation of the power sector, it has been unbundled into three segments: generation, transmission, and distribution, with transmission remaining the weakest link. The proposed GAMCO will manage and enhance the national electricity grid to improve power delivery nationwide.
To drive the initiative, the FEC approved the formation of an inter-ministerial committee to design the operational framework. The committee includes 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 needed.
The panel will review regulatory, legal, and investment matters, including the interests of current investors and operators, before transmitting recommendations to the National Assembly for legislative backing.
Idris highlighted that the initiative is part of broader economic reforms and efforts to accelerate industrialisation, stressing that a functional power sector is critical to sustaining economic growth and improving productivity. He also noted that recent improvements in macroeconomic indicators provide a stronger foundation for energy sector reforms.
Meanwhile, the FEC also approved an additional exit benefit scheme for retiring civil servants under the contributory pension scheme, providing up to 100 per cent of total emoluments to improve efficiency and motivation in the civil service.
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