The Federal Executive Council (FEC) has approved the establishment of the Grid Asset Management Company (GAMCO), a move aimed at addressing persistent national grid failures and widespread power outages, sparking debate across Nigeria.

Announcing the approval after Wednesday’s FEC meeting, Minister of Information and National Orientation, Mohammed Idris, stated that the initiative is designed to strengthen the electricity transmission value chain

“The President has observed that the main challenge in solving Nigeria’s power problem lies largely in the transmission section,” Idris said.

However, the decision has raised concerns among stakeholders in the electricity sector, who warn that GAMCO may duplicate the roles of the Nigeria Integrated System Operator (NISO) and the Transmission Company of Nigeria (TCN), particularly at a time when the sector is facing a severe liquidity crisis.

Dr. Joy Ogaji, CEO of the Association of Power Generation Companies, questioned the legality and necessity of the new company under the Electricity Act, 2023.

“This raises many questions. What is NISO’s role? Is this formation in accordance with the EA 2023? Will TSP operate alongside GAMCO, or is it being phased out? What assets will GAMCO manage?” she asked.

Kunle Olubiyo, President of the Nigeria Consumer Protection Network, also expressed concern over potential job losses at TCN, asking: “What happens to the existing staff of the Transmission Company of Nigeria?”

The development comes amid a recent decline in power supply, which NISO has attributed to a shortage in gas. The sector is also grappling with longstanding financial challenges, including a recent dispute between Generation Companies (GenCos) and the **Nigerian Labour Congress** over a ₦6.6 trillion legacy debt.

As Nigeria continues to struggle with unstable electricity supply, the establishment of GAMCO underscores both the urgency of transmission reforms and the contentious debates over sector governance and structural efficiency.