ABUJA, Mar 9 – The federal government of Nigeria has begun steps to establish a Grid Asset Management Company, known as GAMCO, as part of its efforts to strengthen the country’s electricity transmission network and reduce stranded power across the grid.
The plan received approval from the Federal Executive Council last week and will be driven by an inter-ministerial committee tasked with designing the operational structure of the new entity. The committee includes officials from the ministries of Power, Finance, Works, Science and Technology, and Gas, alongside the Attorney General and the Chairman of the Nigerian Revenue Service.
Government officials say the new company will operate as a state owned commercial entity, with its shares held by the Ministry of Finance Incorporated. Its main focus will be improving the evacuation of electricity from power plants and developing high capacity transmission infrastructure along key corridors.
As part of the initial phase, GAMCO is expected to focus on recovering stranded generation capacity from three government backed plants under the National Integrated Power Project. These plants include Omotosho, Olorunsogo and Ihovbor, which together hold more than 1,700 megawatts of installed capacity.
The government aims to recover about 1,600 megawatts of unused electricity within the next 18 to 24 months by improving transmission connections from the plants. The first project will target the Benin to Lagos transmission corridor, a major electricity route supplying Lagos and Ogun state, two of Nigeria’s most active commercial regions.
Authorities say the committee will also review existing electricity regulations and market structures to ensure the new company fits within the current framework of Nigeria’s power sector.
Category: Corporate & Enterprise
Tags: Energy, Nigeria
