NIGERIA: FG Moves To Unlock 1,600MW Stranded Power With New Grid Company Plan

By Ameenat Hamzat, Lagos, Nigeria 

The Federal Government has taken steps to unlock about 1,600 megawatts of stranded electricity by initiating the establishment of the Grid Asset Management Company Limited (GAMCO).

President Bola Ahmed Tinubu on Friday inaugurated an 11-member committee to facilitate the incorporation of the proposed company, which is expected to address persistent grid management challenges and strengthen electricity transmission across the country.

The committee is chaired by the President’s Chief of Staff, Femi Gbajabiamila, and was inaugurated at the State House in Abuja following approval by the Federal Executive Council earlier in the week.

The initiative is part of broader reforms aimed at improving Nigeria’s power sector and optimising electricity generation and transmission infrastructure.

Speaking at the inauguration, Gbajabiamila described the proposed company as a major step in addressing challenges within the electricity sector.

He said: “The proposed establishment of GAMCO is one of the revolutionary steps taken by Mr. President and this administration in the all-important power sector.”

He added: “We are here for the inauguration of the Committee on Grid Asset Management Company (GAMCO), which is basically to optimise and revolutionise power generation, and in particular, the grid and transmission sector.”

The committee is expected to review existing laws, regulations, and policies governing Nigeria’s electricity value chain, including generation, transmission, distribution, and market operations.

It will also examine the implications of the Electricity Reform Laws 2025 and ongoing restructuring efforts in the sector, particularly regarding asset ownership, management, and regulatory oversight.

As part of its mandate, the panel will assess the legal status and ownership structure of assets belonging to the Niger Delta Power Holding Company under the National Integrated Power Project.

The assets selected for the pilot phase include the Omotosho, Olorunsogo, and Ihovbor power plants.

The committee will also evaluate the relationship between GAMCO’s proposed mandate and the regulatory responsibilities of the Nigerian Electricity Regulatory Commission, while examining the financial implications of the initiative, including subsidy exposure, market liquidity, and revenue frameworks.

Membership of the committee includes the Attorney-General of the Federation and Minister of Justice, the Ministers of Power, Works and Finance, as well as the Ministers of Communications and Digital Economy, Science, Technology and Innovation, Aviation and Aerospace Development, and the Minister of State for Petroleum.

Also on the committee are the Chairman of the Nigeria Revenue Service and energy law expert Yemi Oke.

The Permanent Secretary of the Cabinet Affairs Office, John Chidiebere Ezeamama, will serve as secretary.

GAMCO is designed as a government-owned commercial venture with shares to be held by the Ministry of Finance Incorporated.

The company will focus on recovering stranded electricity generation by improving transmission capacity, particularly along the Benin-Lagos transmission corridor, which supplies electricity to major industrial centres in Ogun and Lagos states.

Under the pilot phase, the government aims to increase electricity output from three power plants under the National Integrated Power Project—Omotosho with an installed capacity of 513 megawatts, Olorunsogo with 754 megawatts, and Ihovbor with 508 megawatts.

Through the initiative, the government hopes to recover at least 1,600 megawatts of stranded electricity within the next 18 to 24 months while improving grid stability and strengthening power supply to

key economic hubs across the country.