- FEC has approved plans to establish a Grid Asset Management Company (GAMCO) to tackle persistent transmission bottlenecks in the country’s electricity sector.
- The proposed entity aims to strengthen grid infrastructure, improve reliability, and unlock greater power delivery across the national network.
The Federal Executive Council (FEC) has approved the establishment of a Grid Asset Management Company (GAMCO) to address persistent challenges in Nigeria’s electricity transmission network.
Mohammed Idris, Minister of Information and National Orientation, announced the decision after the council meeting at the State House in Abuja on Wednesday, March 4. He explained that the initiative targets one of the most critical constraints in the country’s power sector.
According to Idris, Bola Tinubu identified transmission infrastructure as the weakest link in the electricity value chain. Consequently, the government proposed a specialised entity dedicated to managing and optimising grid assets.
He noted that the President introduced a bill proposing the creation of the Grid Asset Management Company. The goal is to improve oversight, strengthen infrastructure management and enhance the reliability of the national transmission network.
To support the initiative, the government has established a high-level committee. The committee includes the Ministers of Power, State for Gas, Works, Finance, and Science and Technology. In addition, the Chairman of the Federal Inland Revenue Service and the Secretary to the Government of the Federation will participate alongside other stakeholders.
The committee will review existing regulations, legislation and investments within the transmission segment. After completing the assessment, it will present recommendations to the National Assembly for enabling legislation.
Idris emphasised that the proposal remains under development. Authorities will therefore evaluate legal and operational frameworks before implementing the reform.
He also linked the initiative to broader economic priorities of the Tinubu administration. Reliable electricity, he argued, is essential for industrial growth and economic stability.
Nigeria restructured its electricity sector in 2013 through a partial privatisation process. The reform separated generation, transmission and distribution activities. While private investors acquired generation and distribution companies, the Transmission Company of Nigeria (TCN) remained under government control.
Despite these reforms, the transmission system continues to face serious challenges. Frequent grid collapses, ageing infrastructure and limited wheeling capacity restrict the volume of electricity delivered to consumers.
Many industry stakeholders have therefore identified transmission as the most significant bottleneck in the electricity value chain. They have repeatedly called for structural reforms to attract investment and modernise the grid.
FEC also approved a new exit benefit scheme for retiring civil servants under the Contributory Pension Scheme. The programme offers an additional benefit of up to 100 per cent of a retiring worker’s total emoluments for employees in treasury-funded ministries, departments and agencies.
According to Idris, the scheme aims to encourage voluntary retirement among senior officials while creating opportunities for younger professionals in the public service.
He added that the benefit will be separate from existing pension entitlements under the Contributory Pension Scheme. However, authorities have yet to release detailed eligibility criteria, service thresholds or implementation timelines, as the policy remains at an early stage.