The Federal Government’s recent announcement to establish the Grid Asset Management Company (GAMCO) has sparked a critical debate among energy experts and industry observers. While the government frames this as a structural solution to the nation’s erratic power supply, stakeholders argue that creating a new agency may be a deficient strategy if it fails to address the fundamental issues of transmission monopoly and investment attractiveness.
Industry stakeholders who spoke with NewsDirect have reacted with skepticism to the news, suggesting that the primary bottleneck remains the government’s continued control over the transmission segment.
Speaking to NewsDirect, a prominent power sector stakeholder argued that the creation of GAMCO would be ineffective unless private sector players are permitted to operate in the transmission space mirroring the privatization of the distribution sector.
The stakeholder noted that Nigeria’s core power struggles stem from the transmission angle.
“By keeping this segment centralized under the Transmission Company of Nigeria (TCN) or a new government-managed entity like GAMCO, the systemic inefficiencies are likely to persist.”
“Decentralizing the transmission network is the only way to significantly reduce the frequency of system collapses,” he argued.
Also commenting, an investment analyst contended that the government must address the investor fatigue plaguing the sector.
The proposal for GAMCO was brought forward directly by President Bola Tinubu during a Federal Executive Council (FEC) meeting.
The Minister of Information and National Orientation, Mohammed Idris, explained that the President identified the transmission segment as the main problem in the power value chain.
According to Idris, GAMCO is intended to manage grid assets more professionally to support the nation’s industrialization goals.
The government has already set up an inter-ministerial committee including the Ministers of Power, Finance, and Justice to design a regulatory and investment framework that considers the interests of existing operators.
The push for a new asset management company comes on the heels of repeated warnings from the Minister of Power, Adebayo Adelabu, regarding the state of the national grid.
Adelabu has previously described the grid as aging and fragile, noting that most of the country’s transmission infrastructure is over 50 years old.
The Minister has frequently pointed out that the current infrastructure cannot support the increased generation capacity the government is aiming for.
In his previous comments, Adelabu emphasized that without a total overhaul or a super grid to provide backup, the system would remain susceptible to the frequent collapses that have come to define the Nigerian power experience.
The establishment of GAMCO represents a recognition by the presidency that the status quo at TCN is no longer sustainable. However, as stakeholders have pointed out, the real challenge in the power sector is one of liquidity and technical decentralization. If GAMCO remains a purely state-run entity without opening the doors to private transmission franchises, it risks becoming another bureaucratic body managing the same decaying assets. For the government’s industrialization dream to become a reality, the new company must not only manage assets but also serve as a vehicle to bridge the massive investment gap and integrate the private sector into the transmission backbone.
OPL 245 resolution will strengthen Nigeria’s fiscal muscle – AGF
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has said that the resolution of the longstanding dispute over OPL 245 will reposition the economy and strengthen the country’s fiscal muscle.
The Attorney-General and Minister of Justic spoke after the signing of the legal agreement that brought the dispute to an end in Abuja.
Acordibg to him, the resolution of the dispute was achieved based on President Bola Tinubu’s visionary leadership.
He further described the development as a milestone in repositioning Nigeria’s economic landscape.
“The agreement marks a turning point for Nigeria’s oil and gas sector after more than two decades of legal battles and international arbitration,” he said.
The federal government reached this settlement with Eni and Nigerian Agip Exploration Limited (NAEL), effectively ending the protracted dispute over OPL 245.
Fagbemi emphasised that resolving the dispute over OPL 245 will recalibrate the national economy and bolster the federal government’s fiscal position.
According to him, early in the administration, President Tinubu directed that all disputes over the oil block be resolved amicably in the best interests of the Nigerian people.
“The clear vision and deep commitment of President Tinubu provided the political will required to bring closure to this protracted dispute. The agreement demonstrates Nigeria’s commitment to transparency, accountability, and the rule of law.”
The Attorney-General explained that the settlement, which will culminate in a Consent Arbitral Award, not only resolves a complex international dispute but also restores Nigeria’s credibility as a responsible partner in global business.
He further highlighted several strategic economic benefits expected from the resolution, including the removal of legal and fiscal uncertainties that previously hindered the development of the oil block.
“This development will pave the way for large-scale investments, stimulate job creation, and reinforce Nigeria’s position as a leading energy producer in Africa,” he said.
Fagbemi also noted that projected revenues from the asset could now be included in the country’s medium-term fiscal framework, thereby supporting budget stability, long-term economic planning, and debt sustainability.
He added that resolving the dispute through negotiated settlement rather than prolonged arbitration underscores Nigeria’s commitment to alternative dispute resolution and enhances the country’s credibility in international commercial and arbitration circles.
“This settlement sends a clear signal to the global community that Nigeria is open for business and committed to fairness and respect for contractual obligations,” he said.
The Attorney-General also commended key institutions and stakeholders that contributed to the successful resolution, including the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian National Petroleum Company Limited, the Economic and Financial Crimes Commission, and international partners such as Eni and Shell.
He emphasised that the settlement represents the triumph of dialogue over conflict and national interest over narrow considerations.
“With this agreement, Nigeria can now move forward with confidence, ensuring that the development of OPL 245 becomes a source of prosperity for the nation and future generations,” Fagbemi stated.