Tinubu Orders GAMCO to Fix Electricity Grid
President Bola Tinubu has moved to split the state’s monopoly on power transmission by creating the Grid Asset Management Company (GAMCO). The Federal Executive Council approved the plan on Wednesday to address the chronic instability of the national grid. Nigeria privatised its generation and distribution arms over a decade ago but kept the transmission lines under government control. This middle section of the value chain remains the weakest link in the country’s power supply.
The new company will manage the physical infrastructure of the grid separately from its daily operations. By isolating these assets, the government hopes to attract the private capital that the sector desperately needs. An inter-ministerial committee will now design the legal and regulatory framework for the firm. This team includes the ministers of power, finance, and justice. They must navigate a thicket of existing debts and investment agreements before the plan reaches the National Assembly.
Nigeria’s industrial ambitions depend entirely on stable electricity. Frequent collapses of the aging grid currently force factories to rely on expensive diesel generators. The President argues that fixing the transmission segment is the only way to make the entire power market viable. If the grid cannot carry the power that plants generate, the system remains a lability. This restructuring suggests the presidency has finally lost patience with the current state-run model.
The government also intends to use this new entity to clarify who owns what in the power sector. Currently, the Transmission Company of Nigeria (TCN) handles both the hardware and the market logistics. This dual role often leads to inefficiency and a lack of accountability when the lights go out. GAMCO will focus on steel and wires, leaving market functions to others. It is a structural shift designed to make the grid “bankable” for international lenders.
Beyond electricity, the Council also approved a significant change to the welfare of retiring civil servants. Those under the Contributory Pension Scheme in treasury-funded agencies may now receive up to 100% of their total annual pay as an exit benefit. This measure follows the Pension Reform Act and aims to soften the blow of retirement during high inflation. It serves as a blunt tool to boost morale across the federal bureaucracy. Officials believe better exit packages will reduce the incentive for corruption among those nearing the end of their careers.
The success of GAMCO will hinge on how the committee handles existing investors. Many players in the power sector are already wary of shifting policy goals and unpaid debts. The Attorney-General and the Chairman of the Federal Inland Revenue Service will oversee the financial and legal audits. They must ensure the new company does not inherit the same lethargy that hobbled its predecessor. For now, the move signals a transition from total state control toward a more commercial transmission model.