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Experts fault Federal Government’s approval of Grid Asset Management Company, citing duplication of roles with NISO and TCN amid Nigeria’s power sector crisis.
The Federal Executive Council (FEC) has approved the establishment of the Grid Asset Management Company (GAMCO) to address Nigeria’s national grid and blackout challenges.
Minister of Information and National Orientation, Mohammed Idris, said the new firm would strengthen the electricity transmission value chain, noting that President Bola Tinubu identified the transmission segment as the weakest link in the country’s power supply system.
Industry Experts Raise Concerns
The approval has sparked controversy among power sector stakeholders, who warn that GAMCO’s creation could duplicate the roles of the Nigeria Integrated System Operator (NISO) and the Transmission Company of Nigeria (TCN).
Dr. Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies (APGC), questioned the legality of GAMCO under the Electricity Act 2023.
Fears of Job Losses at TCN
Kunle Olubiyo, President of the Nigeria Consumer Protection Network, warned that the move could result in massive job losses within the Transmission Company of Nigeria.
The concerns come as Nigeria continues to experience reduced power supply, which NISO attributed to gas shortages affecting generation companies.
Sector Faces Mounting Financial Strain
The controversy over GAMCO’s creation adds to the sector’s liquidity crisis, with generation companies (GenCos) and labour unions recently clashing over the ₦6.6 trillion power sector legacy debt.
Analysts warn that without clear delineation of responsibilities, the new company could complicate governance structures and delay reforms intended to stabilize the national grid.
