President Tinubu Inaugurates Committee To Oversee Grid Asset Company Incorporation As FEC Approves Establishment

President Tinubu inaugurates committee to oversee grid asset company incorporation as FEC approves establishment. President Bola Tinubu has constituted an 11-member committee to facilitate the seamless incorporation of the Grid Asset Management Company (GAMCO) Limited.

In a statement on Friday, Bayo Onanuga, presidential spokesperson, said the committee was constituted following the federal executive council’s (FEC) approval for the establishment of the company at its Wednesday meeting.

According to the statement, the committee will be chaired by Femi Gbajabiamila, chief of staff to the president.

Members include the attorney-general of the federation and minister of justice, as well as the ministers of power, works, and finance.

Other members are the ministers of communications and digital economy; science, technology and innovation; and aviation and aerospace development.

The minister of state for petroleum, the chairman of the Nigeria Revenue Service (NRS), and Yemi Oke, a professor and energy expert, are also part of the committee.

John Ezeamama, permanent secretary of the cabinet affairs office, will serve as the committee’s secretary.

Advertisement
“In proposing GAMCO, President Tinubu hopes to fast-track a quick-fix solution to the endemic problems of stranded power, grid management and transmission in the country’s electricity sector,” the presidency said.

Gbajabiamila, who conducted the inauguration on behalf of the president, said the company is designed to optimise and transform power generation, with a particular focus on the grid and transmission sectors.

He urged committee members to align with the president’s vision in establishing GAMCO and to adhere strictly to the committee’s mandate.

Gbajabiamila added that the committee will carry out a comprehensive review of existing laws, regulations, policies, and institutional frameworks governing the entire electricity value chain, including generation, transmission, distribution, and market operations.

FUNCTIONS OF THE COMMITTEE

According to the statement, the committee will examine the implications of the Electricity Reform Laws (2025) and associated unbundling arrangements on asset ownership, management, and regulatory oversight.

“It will identify areas of conflict, overlap, or inconsistency between the proposed GAMCO framework and extant legal and regulatory instruments,” the statement reads.

“The committee will also assess the legal status, ownership structure, and contractual obligations of the Niger Delta Power Holding Company (NDPHC) and National Integrated Power Project (NIPP) assets, including the Omotosho, Olorunshogo, and Ihovbor plants, which GAMCO plans to use for its pilot phase.

“It will evaluate the interface between GAMCO’s proposed mandate and the statutory functions of the Nigeria Electricity Regulatory Commission, and determine the fiscal, financial, and market implications of the proposal, including subsidy exposure, market liquidity, and revenue frameworks.”

The presidency said the committee will assess if GAMCO’s setup requires changes to laws, subsidy rules, or executive directives.

ABOUT THE PROPOSED GAMCO

According to the statement, the GAMCO aims to recover and optimise stranded power generation using the Benin-Lagos transmission corridor as a pilot phase.

Discover more
Nigerian political news
News website analytics
Online news portal
Political commentary
Advertisement space
Onanuga said the initiative will address Nigeria’s power sector challenges, adding that the federal government will fully own GAMCO as a commercial venture, with the shares held by the Ministry of Finance Incorporated (MOFI).

He said the company will modernise transmission evacuation, starting from the most critical axis within Nigeria’s power system.

“The Benin-Lagos transmission corridor evacuates bulk power supply to Ogun and Lagos states, Nigeria’s largest industrial and commercial centres,” the spokesperson said.

Electricity

“The pilot phase will focus on optimising power output from the Omotosho, Olorunsogo and Ihovbor National Integrated Power Plants (NIPP plants). Omotoso’s installed capacity is 513MW, Olorunsogo’s 754 MW, and Ihovbor’s 508 MW.

“GAMCO projects to recover at least 1,600 MW within 18-24 months, alongside the development of a new high-capacity 330V+ double-circuit transmission line along the same corridor.”

He also said if the new company succeeds in the pilot phase, it will create a scalable model for other plants and corridors, forming the foundation

“At present, substantial Federal Government investment in NIPP generation assets remains under-optimised due to operational inefficiencies and transmission evacuation bottlenecks, resulting in stranded capacity and suboptimal return on public capital,” Onanuga said.

“GAMCO plans to unlock the stranded power of the three selected NIPP and develop a parallel high-capacity transmission corridor along the Benin-Lagos axis, thus translating underperforming national assets into reliably delivered megawatts.”

As proposed, he said the Niger Delta Power Holding Company (NDPHC) will grant GAMCO the concession and lease arrangements for the three plants.

Onanuga said the TCN will also grant GAMCO the right to develop, finance, and operate a greenfield 330 kilovolt+ (KV) double-circuit independent power transmission line along the identified corridor.