Last friday March 6, by constituting an 11-member committee to actualize the incorporation of the
Grid Asset Management Company Limited (GAMCO), president Bola Tinubu seemed to have heeded
the call by Nigerians for him to fulfil his campaign promise that under his watch Nigeria will
experience steady electricity supply and spare the populace the menace of unsteady power supply
which the long suffering masses have been grappling with for decades.
The Chief of Staff to the President, my good friend, Rt.Hon.Femi Gbajabiamila, who inaugurated the
committee on behalf of President Tinubu, underscored the purpose of the committee:
“The proposed establishment of GAMCO is one of the revolutionary steps taken by Mr President and
this administration in the all – important power sector. We are here for the inauguration of the
Committee on Grid Asset Management Company (GAMCO), which is basically to optimise and
revolutionise power generation, and in particular, the grid and transmission sector.”
Continuing, he called on members to align with the President’s vision in proposing the formation of
GAMCO and to stick to the committee’s mandate, which is to conduct a comprehensive review of
existing laws, regulations, policies, and institutional frameworks governing the electricity value chain,
including generation, transmission, distribution, and market operations.
The task given the committee, which ordinarily falls within the purview of the line minister, suggests
to me that President Tinubu may not be satisfied with the policies and programmes of the incumbent
Minister of Power, Mr Adebayo Adelabu, who has been on the saddle since August 2023 and has
come up with a rash of policies and programmes such as the electricity multi-bands tariff system,
which most electricity consumers in Nigeria regard as a scam and therefore a sore point between the
administration and the masses.
Most recently, Minister Adelabu’s last policy decision before GAMCO was introduced last Friday,
March 6, was the unveiling of a so-called 10-year rescue plan to revive manpower shortage in the
electricity sector, which essentially is about breaking up the TCN into two government agencies,
instead of doing the ideal thing, which is to invite private sector investors to participate in the
transmission aspect of the electricity ecosystem in Nigeria.
Part of the minister’s plan was also the training of 1,200 electrical engineers and prioritization of local
contractors under a “Nigeria First” procurement policy.
Other initiatives under the watch of the minister include:
- Electricity Act 2023: Devolving regulatory powers to subnational governments and promoting
competition and private sector participation. - Metering Initiative: Securing ₦700 billion to deploy 1.1 million meters by end-2025 and 2 million
annually for five years. - Renewable Energy Expansion: Mobilizing $2 billion for renewable energy projects and increasing
power access across rural and underserved communities.
It is interesting to note that apart from the signing into law of the electricity act 2023, the objectives
of Adelabu’s power sector reforms did not make the desired impact.
Perhaps that is why President Tinubu seems to have discountenanced them by introducing the
GAMCO, which he is taking charge of from the presidency, as reflected by the fact that it is his chief of
staff, Gbajabiamila (not Minister of Power Adelabu), who is leading the committee, which is more or
less a rescue team for the electricity sector.
Incidentally, when Minister Adelabu introduced his last policy measures(10 years plan), which were
suboptimal in my view, l expressed my reservations with readers in my column of november 6 last
year.
Now, before reproducing the piece under reference, it is imperative that l point out that there is a
general belief by most members of the commentariat (media gate keepers and public intellectuals)
that government does not listen to public opionions conveyed via interventions by columnists and
television/radio show hosts.
But as evidenced by the formation of GAMCO by President Tinubu, Aso Rock Villa listens to the voices
of the critical mass of Nigerians on the streets, conveyed by the mass media and not only of those in
the corridors of power.
Hence, GAMCO has been introduced to remedy the age long electricity power shortage, which has
been a handicap and obstacle to Nigeria’s industrial development.
In the article titled “On Boosting Electricity Supply in Nigeria: Why Minister Adelabu’s Approach
Misses the Mark” which was published on November 6 in this column, l criticized Minister Adebayo
Adelabu’s strategy to improve Nigeria’s electricity supply by arguing that the minister’s proposal to
split the Transmission Company of Nigeria (TCN) into two government-controlled entities is flawed
and won’t address the root cause of the problem – a broken transmission system.
I then highlighted that Nigeria’s power generation capacity is around 12,000 megawatts, but only
5,000 megawatts are being utilised due to transmission constraints.
Therefore, I suggested that the government should liberalize transmission, encourage private
investment, and focus on renewable energy solutions to unlock Nigeria’s economic potential.
In that piece l also emphasized that Nigeria needs a modern, investment-driven grid, not more
bureaucracy.
Readers, can imagine how elated l am to observe that 5 months after l expressed the view, it would
appear as if president Tinubu shares my opinion on the poor performance of the minister of power,
hence he opted to take charge of the critically important electricity supply sector via the
establishment of GAMCO inaugurated last friday March 6 aimed at addressing most of the isssues
raised in my ealier referenced article which constitute the bulk of the terms of reference for GAMCO.
For context, below is the article first published five (5) months ago on November 6, 2025 titled : On
boosting electricity supply in Nigeria: Why minister Adelabu’s approach misses the mark?
“Twelve years after Nigeria privatised its power sector, the country — with over 220 million
citizens — still struggles to supply barely 5,000 megawatts of electricity. Meanwhile,
generation companies can produce up to 12,000 megawatts, but that power remains
stranded. The reason is clear: a broken transmission system.
The 2013 reform copied the telecom privatisation model, assuming similar success. Instead, it
created a fragmented electricity value chain — generation, transmission, and distribution —
run by disconnected entities. Critically, while generation and distribution were privatised,
transmission was left under government control through the Transmission Company of
Nigeria (TCN). That single decision has proven fatal.
TCN still operates colonial-era infrastructure incapable of wheeling current power needs, let
alone future demand. Grid collapses, load rejection, and stranded generation capacity are the
predictable consequences. The private-sector Gencos have invested and improved capacity;
TCN has stagnated.
The impact has cascaded downstream. Distribution companies (Discos) are chronically under-
supplied, unable to scale, and now saddled with an estimated ₦4 trillion debt burden.
Consumers remain in darkness, businesses rely on generators, and economic growth is
constrained.
Now, as the initial privatisation agreements expire, Nigeria has a rare chance to correct
course. However, the recent proposal by Power Minister Adebayo Adelabu to split TCN into
two government-controlled entities misses the point. Fragmenting failure does not produce
reform — it multiplies inefficiency.
What Nigeria needs is not more bureaucracy but a modern, investment-driven grid.
Transmission must be restructured, opened to private capital and expertise, and aligned with
performance incentives. This is how successful power markets operate globally, from Europe
to Asia.
Nigeria’s electricity challenge is not generation; it is transmission. Rather than doubling down
on a state structure that has failed, the government should pursue bold market-driven
reforms. The window to act is now. The cost of hesitation is another decade of darkness.
My objection to the policy matrix proposed by Minister Adelabu is anchored on the dictum
that the government has no business in business. Until the government completely hands off
the management of electricity — as it did with the telecommunications sector 25 years ago
— chaos in the power sector will persist.
Minister Adelabu, justifying continued government ownership of TCN, announced plans to
unbundle the Transmission Company of Nigeria into two entities: the Nigerian Independent
System Operator (NISO) and the Transmission Service Provider (TSP). According to him, the
objective is to promote operational clarity, transparency, and value creation through
improved corporate governance.
However, to me — and to many Nigerians thinking beyond conventional boundaries — this
appears to be a misguided move. The fundamental problem with TCN is bureaucracy and
corruption, features often associated with government-controlled enterprises. Splitting TCN
into two agencies still under state control cannot make it more efficient. It will only create
duplication, confusion, and further inefficiency.
In orther words , fix the transmission bottleneck, do not multiply it.
Nigeria’s history is clear: government-run enterprises are typically riddled with inefficiency,
redundancy, and corruption. That reality led to the creation of the Technical Committee on
Privatisation and Commercialisation (TCPC), later transformed into the Bureau of Public
Enterprises (BPE).
Yet here we are, re-entrenching government control where privatisation should be deepened.
A quick reminder: the four NNPC-owned refineries remain comatose despite years of
turnaround maintenance — an unfortunate but useful lesson.
Given this precedent, the government should not renew partnership contracts with the 11
DisCos that have failed to meet expectations. They should be dissolved, and alongside TCN
assets, transferred to existing GenCos (currently estimated at 23 operational firms with a
combined capacity of 13,461MW) and other competent investors. These entities should then
be assigned specific zones to manage, thus allowing a single operator to oversee generation,
transmission, and distribution within each region.
Nigeria already has six geopolitical zones, a ready framework for restructuring the electricity
market.
Some notable GenCos include Mainstream Energy (operator of Kainji, Jebba, and Zungeru
hydros), Afam, Alaoji NIPP, Azura-Edo, Egbin, Geregu, Odukpani, Shiroro, and Trans-Amadi,
among others. With this spread, it is feasible to allocate zones to capable operators who can
seamlessly manage the full electricity value chain.
This is the norm in Europe, North America, and many parts of Asia where free-market systems
thrive. In contrast, state-controlled utilities are common in monarchical or communist
economies like parts of the Middle East and China. Nigeria has officially transitioned from a
command-and-control economy to a market-driven one. So why the hesitation in liberalising
transmission?
The argument that electricity is a security-sensitive asset and must remain state-controlled no
longer holds water. Telecommunications — equally sensitive — was fully liberalised 25 years
ago with no negative security consequences. On the contrary, it has flourished, creating
indigenous champions like Globacom, owned by Chief Mike Adenuga, which is operating
beyond Nigeria’s borders and helping the country earn foreign exchange.
Why should we accept fear-mongering in the power sector when liberalisation succeeded in
telecoms?
Globally, ownership models vary. France’s EDF and Norway’s Statnett remain state-
controlled; the U.K. and U.S. systems are largely private. China’s State Grid is state-owned,
while Japan and South Korea maintain mixed systems. The rule is clear: no one-size-fits-all.
Pragmatism must guide policy.
Nigeria followed global liberalization trends when it reformed banking in the 1990s, enabling
indigenous entrepreneurs like Jim Ovia (Zenith) and the founders of GTBank- Fola Adeola and
late Tayo Aderinokun to reshape the industry, now dominant across Africa and expanding
globally. Tony Elumelu’s United Bank For Africa, UBA, already flourishing across Africa’s
business landscape, is already present in Europe, the USA, and the Middle East, including
Dubai in the United Arab Emirates , UAE and poised to open a branch jn Saudi Arabia.
Electricity reform should follow a similar trajectory.
Instead, the government appears determined to retain control by splitting TCN — an action
that contradicts global best practice and perpetuates inefficiency.
Furthermore, Nigeria is lagging in renewable energy despite enormous potential in solar,
wind, and hydro. Countries like Ethiopia 100%, DRC 100%, and Eswatini 96% have leveraged
PPPs to scale renewable adoption. Nigeria must do the same if it intends to unlock projected
benefits — including IRENA’s forecast that renewables could provide 60% of Nigeria’s energy
needs by 2050.
Rather than clinging to outdated control models, we should be developing mini-grids and
decentralised systems to bypass an overstretched, outdated national grid that collapses
under loads above 4-5GW, leaving 7-12GW stranded.
Overcoming energy poverty is essential to achieving Nigeria’s ambition of becoming a $1
trillion economy, like Indonesia, our peer in the 1960s. The current economy effectively
operates only between 6 a.m. and 6 p.m., running at half capacity due to unreliable
electricity.
Opening the economy 24/7 would unlock productivity , double our GDP, currently at the number four (4) position in Africa, a little over $118 billion behind South Africa’s at
$410.34, Egypt’s $337.34, and Algeria’s $268.89 accelerate industrialisation.
With adequate and stable electricity, Nigeria’s GDP can even be quadrupled when the
existing factories and even more factories are set up and running in full capacity, thereby
increasing productivity in the economy, such that our country can reclaim its prime position
not only as Africa’s most populous nation but also the largest economy on the continent.
Underscoring the critical role electricity plays in economic development, China became “the
world’s factory” after achieving surplus electricity through mega-projects like the Three
Gorges Dam. India expanded access and reliability through mini-grids. Nigeria must study
and apply these lessons.
To remain trapped in perpetual darkness after 12 years of partial deregulation is
unacceptable. Nigeria must declare an emergency in the power sector, dismantle outdated
structures, liberalize transmission, encourage private investment, and embrace renewable
solutions. Only then can we unlock economic potential, expand manufacturing, and drive
sustainable growth.”
Incidentally, this is not the first time in the past decade that the federal government has been
strategically intervening in the power sector. Like what the president has just done last friday, former
President Muhamadu Buhari of blessed memory had also saddled his chief of staff, Mallam Abba
Kyari, with the responsibility of working with Siemens of Germany to deliver a stable electricity supply
in Nigeria.
The task was unaccomplished before he suddenly passed away, and the project is still ongoing.
The diference between the initiative by the last administration driven by Abba kyari to boost
electricity supply is that while the effort was a one man show driven by then Chief of Staff to the
president, in the current dispensation, under the watch of president Tinubu, a multi discipline
approach, through setting up of a committee comprising of ministries, departments and agencies led
by Chief of staff Gbajabiamila to tackle the seemingly intractable challenge of electricity power
poverty hobbling the progress and development of our country.
Given the compostion of the current handicapped electricity power sector rescue team, it may not be
too hasty to spread the optimism that help is on the way and encourage Nigerians to renew their
hope that the long sought transition from darkness to light is on track.
Magnus Onyibe is an entrepreneur, public policy analyst, author, democracy advocate, development
strategist, and alumnus of the Fletcher School of Law and Diplomacy, Tufts University, Massachusetts,
USA. A Commonwealth Institute scholar and former commissioner in the Delta State Government, he
sent this piece from Lagos.