Sopuruchi Onwuka

The Niger Delta Power Holding Company (NDPHC) Plc and other players in the Nigerian upstream power sector will soon find enhanced access to the high demand domestic electricity supply market following moves to establish a special purpose entity to accelerate flow of stranded generation to starved market.

The Grid Asset Management Company Limited (GAMCO) proposed by the government and approved by the National Assembly last weekend is designed to bridge the gap between Nigeria’s huge, stranded power generation capacity and the persistent supply shortages in the downstream electricity market by improving transmission evacuation and grid management.

To drive the initiative, the Federal Government has inaugurated an 11-member committee to facilitate the establishment and operationalization of the public sector-led special purpose entity.

The committee was inaugurated by the Chief of Staff to the President, Femi Gbajabiamila, on behalf of President Bola Ahmed Tinubu.

The move followed the approval of a presidential memo by lawmakers for the creation of GAMCO to tackle long-standing challenges in Nigeria’s power sector, particularly stranded generation capacity, weak grid management and transmission bottlenecks.

The Federal Executive Council had earlier approved the establishment of the company at an earlier meeting.

Gbajabiamila described GAMCO as a key step toward transforming Nigeria’s electricity sector, saying “The proposed establishment of GAMCO is one of the revolutionary steps taken by Mr President and this administration in the all-important power sector.”

He said GAMCO would basically optimize and revolutionize power generation, particularly in the grid and transmission segment, undertake a comprehensive review of existing laws, regulations, policies and institutional frameworks governing the electricity value chain, including generation, transmission, distribution and market operations.

The panel will also examine the implications of the Electricity Reform Laws (2025) and related unbundling arrangements on asset ownership, management and regulatory oversight.

In addition, the committee will identify areas of conflict, overlap or inconsistency between the proposed GAMCO framework and existing legal and regulatory instruments.

The committee is to also examine the legal status, ownership structure and contractual obligations of the Niger Delta Power Holding Company and assets under the National Integrated Power Project.

Some of the upstream power industry assets under the GAMCO pilot projects include NIPP gas fired electricity generation plants located at Omotosho, Olorunsogo and Ihovbor.

The committee will also evaluate how GAMCO’s proposed mandate will interface with the statutory functions of the Nigerian Electricity Regulatory Commission and determine the fiscal, financial and market implications of the proposal, including subsidy exposure, market liquidity and revenue frameworks.

It will further determine whether the establishment and operationalization of the company require amendments to primary legislation, subsidy regulations or executive directives.

As part of the pilot project, GAMCO would recover and optimize stranded generation capacity using the Benin–Lagos transmission corridor as its pilot phase.

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

Its initial focus will be on improving power evacuation from three National Integrated Power Plants: Omotosho, Olorunsogo and Ihovbor.

Omotosho has an installed capacity of 513 megawatts (MW), Olorunsogo 754 MW and Ihovbor 508 MW.

GAMCO targets the recovery of at least 1,600 MW within 18 to 24 months while also developing a new high-capacity 330kV+ double-circuit transmission line along the Benin–Lagos corridor.

The corridor supplies bulk electricity to Ogun and Lagos states, the country’s largest industrial and commercial hubs.

If successful, the pilot project will provide a scalable model that could be replicated across other power plants and transmission corridors to strengthen grid stability nationwide.

At present, significant federal investment in generation assets under the National Integrated Power Project remains under-utilized due to operational inefficiencies and transmission bottlenecks.

GAMCO is expected to unlock this stranded capacity by improving asset management and building a parallel high-capacity transmission corridor along the Benin–Lagos axis.

Under the arrangement, the Niger Delta Power Holding Company will grant GAMCO concession and lease rights for the three plants, while the Transmission Company of Nigeria will grant the company the right to develop, finance and operate the proposed independent transmission line.

Officials say the initiative will enhance electricity reliability, boost industrial productivity, protect jobs, improve investor confidence and strengthen household welfare in line with the administration’s Renewed Hope Agenda.

Gbajabiamila chairs the committee, which includes the Attorney-General of the Federation and Minister of Justice, as well as the Ministers of Power, Works and Finance.

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 Professor Yemi Oke.

The Permanent Secretary of the Cabinet Affairs Office, Dr John Chidiebere Ezeamama, will serve as the committee’s secretary.