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President Bola Tinubu has inaugurated an 11-member committee to oversee the creation of a new government-owned company aimed at unlocking stranded electricity and improving supply to Nigeria’s main industrial corridor.
Officials say the move could help ease chronic power shortages affecting businesses and households.
The committee will facilitate the establishment of the Grid Asset Management Company Limited (GAMCO), a new entity designed to tackle longstanding transmission and grid management bottlenecks that have left large volumes of electricity unused despite Nigeria’s installed generating capacity.
Speaking during the inauguration in Abuja on Friday, the President’s Chief of Staff, Femi Gbajabiamila, said the initiative represented a major step in the administration’s effort to stabilise the power sector.
“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 while inaugurating the committee on Tinubu’s behalf.
“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 initiative comes as manufacturers, small business owners and artisans across Nigeria continue to grapple with unreliable electricity supply that forces many to rely heavily on diesel and petrol generators, increasing production costs and undermining competitiveness.
Officials say a major problem in Nigeria’s electricity market is “stranded power”, electricity that can be generated but cannot be delivered to consumers because of transmission limitations and grid inefficiencies.
According to the presidency, GAMCO is expected to recover at least 1,600 megawatts of stranded electricity within 18 to 24 months by improving evacuation of power from existing plants.
“The committee will conduct a comprehensive review of existing laws, regulations, policies and institutional frameworks governing the electricity value chain, including generation, transmission, distribution and market operations,” Gbajabiamila said.
The government plans to begin the pilot phase along the Benin-Lagos transmission corridor, one of the most critical routes for electricity supply to Nigeria’s industrial hubs.
The corridor supplies bulk electricity to Lagos and Ogun states, home to a large concentration of factories, manufacturing plants and commercial enterprises.
Officials say the project will initially focus on optimising output from three plants built under the National Integrated Power Project (NIPP): the Omotosho, Olorunsogo and Ihovbor power stations.
Together, the plants have a combined installed capacity of more than 1,700 megawatts, but much of that capacity is currently underutilised.
The new company will also oversee the development of a high-capacity 330KV double-circuit transmission line along the Benin-Lagos axis to improve electricity evacuation.
“The company will modernise transmission evacuation, starting from the most critical axis within Nigeria’s power system,” the presidency said.
Beyond infrastructure improvements, the committee will also examine the legal and financial framework required to establish GAMCO and integrate it into Nigeria’s power sector.
Its mandate includes reviewing existing electricity laws, assessing ownership and contractual arrangements tied to National Integrated Power Project assets, and determining whether legislative changes are required for the new company to operate effectively.
The committee will also evaluate how GAMCO’s proposed role will interact with regulators such as the Nigerian Electricity Regulatory Commission and other sector institutions.
Officials said the review would consider fiscal implications, including subsidy exposure, market liquidity and revenue structures within the electricity market.
Under the proposal, the Federal Government will fully own GAMCO as a commercial entity, with its shares held by the Ministry of Finance Incorporated.
The Niger Delta Power Holding Company is expected to grant concession and lease arrangements for the three pilot plants, while the Transmission Company of Nigeria will allow the company to develop and operate the new transmission line along the corridor.
Authorities say the long-term goal is to create a scalable model that can be expanded across other transmission corridors and power plants nationwide.
According to the presidency, the initiative is expected to “translate underperforming national assets into reliably delivered megawatts”.
Officials added that improved electricity reliability could enhance industrial productivity, protect jobs and boost investor confidence in Africa’s largest economy.
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