Nigeria Launches GAMCO To Unlock 1,600 MW And Strengthen National Power Grid

In a major step to address its long-standing electricity challenges, the Nigerian government has launched a new state-owned company to improve the management of the national power grid. In March 2026, President Bola Tinubu inaugurated a special committee to oversee the creation of the Grid Asset Management Company (GAMCO). The initiative is part of a broader reform plan aimed at modernizing electricity transmission and reducing frequent grid failures across the country.

For many years, the Transmission Company of Nigeria handled both the maintenance of transmission infrastructure and the management of electricity flow. This dual responsibility often led to inefficiencies, as experts believed the workload was too large for a single organization. To address this issue, the government has decided to separate these functions. Under the new structure, TCN will continue to maintain physical assets such as transmission towers and cables, while newly formed entities will take on operational and commercial roles.

One of these new entities is the Grid Asset Management Company, which will focus on improving the efficiency of transmission assets. Another key organization is the Nigerian Independent System Operator, which will manage the technical operation of the grid. This unbundling is expected to bring more clarity, accountability, and professionalism into the sector.

A major objective of GAMCO is to recover what is known as “stranded” power. This refers to electricity that is already being generated but cannot be delivered to consumers due to weak or poorly managed transmission systems. The company plans to begin with a pilot project along the Benin–Lagos corridor, one of the busiest electricity routes in the country. This region supplies power to key industrial and commercial centers, making it a critical area for improvement.

Through targeted upgrades and better management, the government expects to unlock at least 1,600 megawatts of additional electricity within the next two years. This could significantly improve power supply for businesses and households in the region.

The reform is supported by the Electricity Act of 2023 and further legal updates introduced in 2025. These laws aim to make the electricity sector more transparent and commercially driven. GAMCO will operate as a government-owned company but will follow a business-oriented approach, allowing it to attract private investment.

If the pilot project proves successful, the government plans to expand this model to other regions. The overall goal is to build a stronger and more reliable power network that can support economic growth and improve the quality of life for millions of Nigerians.