Nigeria’s electricity transmission system is under pressure, and the latest reform by the government may do little to fix it. On 6 March 2026, President Bola Tinubu inaugurated an 11-member committee to establish the Grid Asset Management Company (GAMCO), a new firm expected to better manage Nigeria’s transmission of electricity.
At first glance, GAMCO promises efficiency and investment. But beneath this is a complex network of agencies, regulations, and infrastructure issues.
The pilot project along the Benin-Lagos corridor is intended to deliver 1,600 megawatts from the Omotosho, Olorunsogo, and Ihovbor plants. It also includes a 330kV double circuit transmission line to move more power to Lagos and Ogun states.
Yet, there are questions and doubts as to the relevance of GAMCO. Will this new agency really help to resolve the long-standing issues in the transmission system, or will it just be another layer of bureaucracy in the system?
This report explores why GAMCO, despite its bold promises, may not solve the country’s power problems. It examines the government’s plan, and why a new agency might complicate the sector instead of fixing it.
Understanding the GAMCO model
The Grid Asset Management Company (GAMCO) is a fully government-owned company, and its shares are held by the Ministry of Finance Incorporated. The government claims it will solve Nigeria’s transmission issues, utilize its assets, and unlock power that is currently wasted.
The committee to set up GAMCO was inaugurated by Femi Gbajabiamila, on behalf of President Bola Tinubu. The government called it a major step to improve the country’s electricity sector.
Bayo Onanuga, the President’s Special Adviser on Information and Strategy, described GAMCO as “one of the revolutionary steps taken by Mr President and this administration in the all-important power sector.”
He added that it would concentrate on improving power generation and transmission.
The pilot phase targets the Benin–Lagos corridor. GAMCO plans to recover about 1,600 megawatts from three power plants: Omotosho (513 MW), Olorunsogo (754 MW), and Ihovbor (508 MW). A 330kV double-circuit transmission line will carry the electricity to Lagos and Ogun states.
The committee will also review all laws, rules, and institutions involved in transmission. They must identify overlaps and suggest changes if needed. In theory, GAMCO is meant to be a centralised solution for Nigeria’s electricity and transmission system.
However, details about its implementation, accountability, and interaction with existing institutions are still not clear. This has sparked doubts about the ability of GAMCO to accomplish its goals.
Nigeria’s real transmission problem
Nigeria often generates more electricity than it can deliver. Transmission lines are congested, leaving large amounts of power stranded. This means homes, businesses, and factories often go without electricity.
The country has an installed generation capacity of over 13,000-16,000 MW. However, the national grid often struggles to transport more than 4,000-5,000 MW of power. This leads to huge power deficits, frequent grid collapses, and overdependence on private generators.
Years of underinvestment, old equipment, and limited backup systems have made the problem worse. Even with billions spent on generation, the national grid still faces collapse.
The Benin–Lagos corridor, GAMCO’s pilot area, often faces congestion. This leaves industrial hubs in Lagos and Ogun states vulnerable to power shortages, causing economic losses and discouraging investors.
Several agencies are meant to manage the grid.
The Transmission Company of Nigeria (TCN) is in charge of maintenance and upgrading of transmission lines. The Nigerian Independent System Operator (NISO) runs the grid and the electricity market. The Nigerian Electricity Regulatory Commission (NERC) sets tariffs and market rules.
Yet persistent outages show that having many agencies does not automatically solve transmission problems.
Adding to the complexity, the FGN Power Company (FGNPC) manages some generation assets and coordinates projects. Legacy institutions like NELMCO, which deal with outstanding debts and old assets, are still operational.
This duplication of functions creates a question of whether a new agency will really improve grid performance or is simply another bureaucratic layer.
Without clear planning, continuous funding, and monitoring, new initiatives are bound to fail.
GAMCO is entering a sector that is already plagued by a lack of planning, funding, and monitoring, which creates a question of whether it will really make the big changes that the government is promising.
Why the GAMCO idea is controversial
GAMCO is entering a sector that already has many agencies. This raises questions about whether the new company is really needed.
In Nigeria, there are already several agencies that manage the transmission and the grid. The TCN, NISO, and NERC all have their defined roles.
Critics warn that adding another body could duplicate work and make the system more complicated. Past reforms show that creating new institutions does not automatically improve efficiency, especially when responsibilities are unclear.
“Adding a new agency without clearly defining its responsibilities risks slowing decision-making and creating inefficiencies,” Bakre Lateef, an energy policy analyst, told Energy in Africa. He adds that overlapping roles have long held back progress and GAMCO could repeat the same mistakes if it does not coordinate well with existing agencies.
GAMCO’s structure itself raises questions. It is fully government-owned, yet it must work with existing operators, manage assets, and run pilot projects along congested transmission lines. How it will navigate rules and deliver real improvements remains uncertain.
Institutional contradictions in the reform
GAMCO’s proposed structure risks conflicts with existing agencies, which could limit its effectiveness. Critics warn that managing assets and revenue under GAMCO may duplicate work and create confusion.
“The sector’s financial and regulatory arrangements are already complex,” says Lateef Onifade, an energy analyst in Lagos.
“Introducing another entity without clear integration could raise costs and create uncertainty for investors.”He notes that misaligned roles could divert resources from actual improvements.
Coordination with special-purpose bodies like FGNPC and legacy institutions such as NELMCO will be critical. GAMCO must manage leased assets and run pilot projects while staying transparent and accountable. Misalignment could easily undermine results.
Financially, uncertainty remains around tariff recovery and market liquidity. Without clear authority and a stable source of income, GAMCO may not attract investments or implement large-scale upgrades.
Analysts warn that these contradictions, if not resolved, may turn this reform into yet another expensive administrative layer.
Financing challenges GAMCO cannot solve
The government has presented GAMCO as a solution to unlock new investment in Nigeria’s transmission sector. Officials claim that the firm will attract financing, improve stranded power, and support large-scale infrastructure upgrades. ]
In theory, this could help deliver electricity faster and solve the grid problems.
But Nigeria’s electricity market already struggles with money and revenue. Tariffs are collected inconsistently, subsidies are poorly managed, and private investors are often cautious.
Many experts doubt that a new agency alone can fix these deep-rooted financial problems.
“Funding alone will not solve the sector’s problems. Nigeria’s market suffers from weak revenue flows and liquidity gaps. Unless GAMCO is integrated with existing mechanisms, it risks duplicating interventions and wasting resources,” Chinedu Amadi, an electricity specialist, told Energy in Africa.
GAMCO could also add another layer of financial complexity. The Central Bank of Nigeria (CBN), FGN-backed funds, and other financing programs already support the sector.
A new agency could overlap with these efforts, causing inefficiency and higher costs.
Without clear oversight and coordination with existing structures, GAMCO risks becoming another institution that spends heavily without significantly improving grid performance.
The technical and financial realities suggest that the company alone cannot solve Nigeria’s transmission financing challenges.
A better alternative to electricity transmission crisis
Experts say Nigeria’s transmission problems cannot be solved by creating another agency alone. Weak structures, overlapping institutions, and underused assets require reforms that connect generation, transmission, and the electricity market.
“The sector needs clear coordination between operators, proper maintenance of existing lines, and better use of assets,”says Amadi. “Before investing in new institutions, the government must fix bottlenecks, optimise current infrastructure, and improve grid management.”
Nigeria also needs predictable financing and clear rules. Collecting tariffs properly, and coordinating with existing institutions like the CBN, FGN-backed funds, and NERC are key to attracting private investment. Without these bases, even well-funded initiatives like GAMCO can fail.
Technical upgrades should also aim to enhance stability, redundancy, and modernisation of the grid. The Benin-Lagos corridor pilot has shown promise in terms of recovering stranded power, but this will require careful planning and implementation with TCN and NISO, and monitoring of performance.
Ultimately, what is required for the transmission sector in Nigeria is not more agencies but targeted and coordinated interventions. There is a need for reforms to strengthen existing institutions and ensure efficiency and sustainability in order to unlock the potential of the power sector in Nigeria.
