President Bola Ahmed Tinubu has initiated plans to establish a Grid Asset Management Company (GAMCO), as part of efforts to strengthen the transmission segment of Nigeria’s electricity value chain.
The proposed Grid Asset Management Company is intended to manage and strengthen the national electricity grid in order to improve power delivery across the country.
The Minister of Information and National Orientation, Mohammed Idris made these known on Wednesday while briefing journalists at the State House, Abuja, after the Federal Executive Council (FEC) meeting presided over by the President.
The Minister said; “the proposal was contained in a memorandum presented to the Council by President Tinubu himself for deliberation.”
Idris explained that “the initiative would address Nigeria’s persistent electricity challenges, particularly in the transmission segment of the power sector.”
The Minister noted that the power sector was unbundled following its deregulation into three segments, generation, transmission and distribution, but the transmission arm remains the weakest link in the system.
“You recall that since the deregulation of the power sector, the sector is divided into three categories: generation, transmission and distribution. The President has seen that where the problem is mainly in our quest to solve the power problem is largely in the transmission section,” he said.
To drive the initiative, the Federal Executive Council approved the establishment of an inter-ministerial committee that will work out the operational framework for the proposed company.
Members of the committee include; the Minister of Power; Minister of State for Gas; Minister of Works; Minister of Finance; Chairman of the Nigerian Revenue Service; Minister of Science and Technology; and the Attorney-General of the Federation.
The committee may also co-opt other stakeholders as necessary.
In addition, the Minister explained that “the panel will look into all regulatory, legal and investment issues associated with the establishment of the new entity, including the interests of existing investors and operators within the sector.”
“All the enabling parameters will be looked at, the laws will be examined, and those who are practising in that sector and those who have invested in that sector will also have their level of investment considered,” he said.
Idris noted that the proposal is still under consideration, stressing that once the committee concludes its work, its recommendations will be forwarded to the National Assembly for the necessary legislative action where applicable.
The Minister said that the initiative is part of the administration’s wider strategy to strengthen ongoing economic reforms and fast-track Nigeria’s industrial development.
He emphasised that addressing the challenges in the power sector remained central to sustain economic growth and boost national productivity.
Idris further pointed to recent gains in Nigeria’s macroeconomic outlook, citing the growth in foreign exchange reserves and a gradual moderation in inflation, which he said have created a more stable environment for advancing reforms in the energy sector.
“The President feels that for us to actually industrialise, the power sector must be fixed, and that is why he has taken this initiative of looking at how this Grid Asset Management Company will be set up to help solve the problem of power in this country,” he said.
Meanwhile, the Federal Executive Council has approved the introduction of an additional exit benefit package for retiring civil servants in treasury-funded ministries, departments, and agencies operating under the Contributory Pension Scheme.
Idris said that the initiative would enable eligible retirees to receive benefits of up to 100 per cent of their total emoluments, in accordance with Section 4(4)(a) of the Pension Reform Act.
According to the Minister, the measure is designed to improve efficiency and motivation within the civil service by strengthening the welfare framework for public servants approaching retirement.