By Yusuf Danjuma Yunusa
In a major push to resolve Nigeria’s persistent power challenges, President Bola Tinubu has unveiled plans to establish a Grid Asset Management Company (GAMCO) to overhaul the country’s fragile transmission infrastructure.
The proposal was disclosed to State House correspondents on Wednesday by the Minister of Information and National Orientation, Mohammed Idris, following the Federal Executive Council (FEC) meeting chaired by the President.
Minister Idris revealed that the initiative stemmed from a memorandum presented directly by President Tinubu, who has identified the transmission segment as the primary bottleneck hindering stable electricity supply. He noted that while the power sector was successfully unbundled into Generation, Transmission, and Distribution segments following deregulation, the transmission component remains the weakest link.
“The President has observed that the fundamental obstacle to solving our power problems lies largely in the transmission section,” Idris stated. “The establishment of GAMCO is designed to professionally manage and strengthen the national grid, ultimately improving power delivery across the nation.”
To bring the vision to fruition, the FEC has approved the formation of an inter-ministerial committee tasked with developing a comprehensive operational framework for the proposed company. The committee boasts a high-level composition, including:
– The Minister of Power
– The Minister of State for Gas
– The Minister of Works
– The Minister of Finance
– The Chairman of the Federal Inland Revenue Service (FIRS)
– The Minister of Science and Technology
– The Attorney-General of the Federation (AGF)
The committee has the authority to co-opt other relevant stakeholders as needed. Its mandate is to scrutinise all regulatory, legal, and investment parameters associated with the new entity. A key aspect of its work will be to carefully consider the interests and investments of existing operators in the sector.
“All enabling parameters will be examined, including the relevant laws,” Idris explained. “We will also engage with those currently practising and investing in the sector to ensure their investments are taken into consideration.” He added that the proposal is a work in progress, and the committee’s final recommendations will be forwarded to the National Assembly for any necessary legislative backing.
The Minister framed the initiative as a cornerstone of the administration’s broader strategy to consolidate economic reforms and accelerate Nigeria’s industrialisation. “The President believes that for us to truly industrialise, the power sector must be fixed,” he said. He also pointed to recent improvements in macroeconomic indicators, such as rising foreign reserves and easing inflation, as providing a stronger foundation for such critical sectoral reforms.
In a separate development, the Federal Executive Council also approved the implementation of an enhanced exit benefit scheme for civil servants retiring from treasury-funded Ministries, Departments, and Agencies (MDAs) under the Contributory Pension Scheme.
Minister Idris stated that the new scheme would allow retiring employees to receive benefits of up to 100 per cent of their total annual emoluments, in line with Section 4(4)(a) of the Pension Reform Act. He explained that the measure is intended to boost efficiency and motivation within the civil service by significantly strengthening the welfare framework for public servants approaching retirement.
This latest approval comes on the heels of the presidency’s recent completion of a project to install solar power infrastructure at the Presidential Villa, a move designed to completely disconnect the seat of power from the national grid.
