Tinubu Moves To Unlock 1,600MW, Sets Up GAMCO

President Bola Tinubu on Friday inaugurated an 11-member committee to oversee the establishment of the Grid Asset Management Company Limited (GAMCO), a new initiative aimed at unlocking at least 1,600 megawatts of stranded electricity and improving efficiency in Nigeria’s troubled power sector.

The committee was constituted following the approval of the Federal Executive Council at its Wednesday meeting for the creation of the new company, which the administration hopes will address persistent problems of stranded power generation, grid management and transmission bottlenecks across the electricity value chain.

The Chief of Staff to the President, Femi Gbajabiamila, who inaugurated the committee on behalf of the President, described the initiative as a major step towards reforming the country’s electricity sector and improving power supply.

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

“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 Chief of Staff added.

The President’s move is part of broader efforts to tackle long-standing inefficiencies in the power sector, where large volumes of electricity generated by government-owned plants remain stranded due to inadequate transmission infrastructure and operational constraints.

The newly constituted committee has been tasked with conducting a comprehensive review of existing laws, regulations, policies and institutional frameworks governing the electricity value chain, including generation, transmission, distribution and market operations.

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

The panel will identify areas of conflict, overlap or inconsistency between the proposed GAMCO framework and existing legal and regulatory instruments, while also determining the fiscal, financial and market implications of the proposal.

Another key part of the committee’s assignment is to assess the legal status and ownership structure of assets under the Niger Delta Power Holding Company and the National Integrated Power Project, particularly the Omotosho, Olorunsogo and Ihovbor power plants which have been selected for the pilot phase of the initiative.

The committee will also review GAMCO’s relationship with the Nigerian Electricity Regulatory Commission and determine how its proposed mandate aligns with existing regulatory structures within the power sector.

Members are expected to examine subsidy exposure, market liquidity and revenue frameworks that could arise from the establishment of the new company, while also determining whether the operationalisation of GAMCO will require amendments to existing legislation or executive directives.

Gbajabiamila urged members of the committee to align closely with the President’s vision for the power sector.

He said the committee’s work would be central to the success of the initiative and the broader goal of improving electricity reliability across the country.

The Chief of Staff chairs the committee, with the Attorney-General of the Federation and Minister of Justice, as well as the Ministers of Power, Works and Finance serving as members.

Other members include the Ministers of Communications and Digital Economy, Science, Technology and Innovation, Aviation and Aerospace Development, the Minister of State for Petroleum, the Chairman of the Nigeria Revenue Service and energy expert Yemi Oke. The Permanent Secretary of the Cabinet Affairs Office, Dr John Chidiebere Ezeamama, will serve as the committee’s secretary.

GAMCO is expected to focus initially on recovering and optimising stranded electricity generation using the Benin–Lagos transmission corridor as a pilot phase.

The corridor is considered one of the most critical transmission routes in Nigeria’s power system, evacuating bulk electricity supply to Lagos and Ogun states, the country’s largest commercial and industrial hubs.

Under the pilot phase, the initiative will optimise output from three National Integrated Power Project plants – Omotosho, Olorunsogo and Ihovbor – whose combined installed capacity exceeds 1,700 megawatts.

The Omotosho plant has an installed capacity of 513MW, Olorunsogo has 754MW, while Ihovbor has 508MW.

Through improved transmission infrastructure and disciplined asset management, the government projects that at least 1,600MW of currently stranded power could be recovered within the next 18 to 24 months.

A major component of the initiative includes the development of a new high-capacity 330kV double-circuit transmission line along the Benin–Lagos corridor, designed to improve power evacuation from generation plants to key consumption centres.

The Federal Government plans to fully own the company as a commercial venture, with its shares to be held by the Ministry of Finance Incorporated.

The new company will also develop and operate the proposed transmission infrastructure, while working with relevant agencies and operators within the power market.

Officials say the initiative is designed not only to stabilise electricity supply but also to strengthen industrial productivity, improve investor confidence and enhance economic competitiveness.

With significant public investment already tied up in National Integrated Power Project assets that remain underutilised, the government believes GAMCO could help translate those investments into reliable electricity delivery.

If successful, the pilot phase is expected to serve as a scalable model that could be extended to additional plants and transmission corridors across the country, forming the backbone of long-term grid stabilisation and expansion.

The broader objective, according to the presidency, is to transform underperforming national power assets into reliable megawatts that can support economic growth and improve welfare outcomes for Nigerian households in line with the administration’s Renewed Hope agenda.