… “from all indications, President Tinubu does not appear to trust existing institutions ” — Adegbemle on GAMCO
… “GAMCO, a fully FG-owned company could be perceived as a gradual re-nationalization of parts of the sector” – Ojelabi
Oredola Adeola
Experts in the power sector have raised concerns that unless the mandate and operational framework of the proposed Grid Asset Management Company (GAMCO) are clearly defined, the entity could end up duplicating existing roles within Nigeria’s electricity industry, complicating governance and decision-making across the power value chain.
According to analysts, questions remain about the ultimate objective of GAMCO, with some warning that the introduction of a new government-backed institution could add another bureaucratic layer to an already complex electricity market.
However, stakeholders note that with a clearly defined role and proper coordination with institutions such as the Nigerian Electricity Regulatory Commission and the Transmission Company of Nigeria, the initiative could still contribute to improving grid asset management and strengthening electricity supply.
Recall that the Federal Government had stated that the proposed Grid Asset Management Company (GAMCO) is specifically designed to address longstanding transmission bottlenecks in the country’s power sector.
According to the government, GAMCO will operate as a commercially driven entity fully owned by the state, with its shares held by the Ministry of Finance Incorporated. The initiative is expected to recover and optimise stranded power generation while introducing disciplined asset management and mobilising private capital into critical grid infrastructure.
The FG explained that the company will initially focus on the strategic Benin–Lagos transmission corridor as a pilot phase. The move is aimed at improving electricity reliability for key industrial zones in Lagos and Ogun State, Nigeria’s major commercial and manufacturing hubs.
As part of the pilot project, GAMCO will optimise electricity output from three power plants under the Niger Delta Power Holding Company’s National Integrated Power Project—Omotosho (513MW), Olorunsogo (754MW), and Ihovbor (508MW)—which together have a combined installed capacity of over 1,700MW. The government aims to recover at least 1,600MW of this capacity within the next 18 to 24 months.
The plan also includes the construction of a new high-capacity 330kV double-circuit transmission line along the Benin–Lagos axis to improve power evacuation and grid efficiency.
Authorities say that if the pilot succeeds, the model could be expanded to other power plants and transmission corridors nationwide, forming the backbone of long-term grid stabilisation, increased industrial productivity, job protection, and improved welfare for Nigerian households.
Experts who spoke on the development expressed cautious optimism, noting that while the initiative could help address structural weaknesses in the sector, its success will largely depend on governance, clarity of mandate, and coordination with existing institutions.
Adetayo Adegbemle, Executive Director of PowerUp Nigeria, aligned with the broader objective of GAMCO, particularly its potential to bring large industrial and bulk electricity users back onto the national grid.
According to him, reconnecting such users could help stabilise revenue flows across the electricity market and improve overall sector liquidity.
He, however, cautioned that the emergence of a new government-backed entity raises questions about institutional confidence and the risk of overlapping mandates.
“From all indications, the President does not appear to trust existing institutions to handle this assignment. There is need to ensure that role conflicts and possible overlaps are resolved as soon as possible,” he said.
Victor Ojelabi, former Acting Managing Director of the Abuja Electricity Distribution Company, said the creation of the GAMCO appears aimed at addressing structural challenges that have persisted in Nigeria’s power sector since the privatization of the Power Holding Company of Nigeria.
According to him, the new entity could serve as an asset management and restructuring vehicle for government-linked or distressed power assets, helping to stabilise struggling utilities, improve governance, and protect federal investments in the sector.
He explained that the model is similar to asset management companies used in the banking industry to restructure weak assets and restore operational performance.
If properly structured, Ojelabi said GAMCO could professionalise the management of government stakes in the electricity market and provide temporary stabilisation for operators facing financial pressure, although it may also raise concerns about a gradual return to government dominance in a sector that was largely privatized.
Ojelabi stressed that the real impact of GAMCO will depend on its governance, leadership quality, and transparency.
He noted that industry stakeholders will closely watch key indicators such as the independence and expertise of its leadership, clarity of its mandate, and the publication of audited financial statements and asset restructuring plans.
He added that without broader reforms addressing tariff design, market liquidity, transmission constraints, and regulatory enforcement by the Nigerian Electricity Regulatory Commission, the initiative alone may not resolve the sector’s deeper challenges.
