ABUJA, Nigeria (VOICE OF NAIJA)-The Federal Executive Council has approved the creation of a Grid Asset Management Company to tackle Nigeria’s long-standing power transmission problems.
The Minister of Information and National Orientation, Mohammed Idris, disclosed the decision on Wednesday after the FEC meeting held at the State House in Abuja.
He described the initiative as a major step toward resolving the country’s electricity challenges “once and for all.”
“The President has seen that in our quest to solve the power sector challenges, the main problem is largely in the transmission section.
Therefore, Mr President came with a bill mulling the idea of setting up what is called the Grid Asset Management Company, GAMCO,” Idris stated.
He revealed that a committee has been set up to facilitate the smooth establishment of the company.
The committee includes the Ministers of Power, State for Gas, Works, Finance, Science and Technology, the Chairman of the Federal Inland Revenue Service, the Secretary to the Government of the Federation, and other co-opted members.
According to the minister, the committee will review regulatory matters, relevant legislation, and investments already made by operators within the transmission sector before submitting recommendations to the National Assembly for appropriate legislation.
“Of course, the regulatory part of it will all be looked at, all the laws will be looked at, those who are also practicing in that sector, those who have invested in that sector, their level of investment will also be looked at,” Idris stated.
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He described the plan as “work in progress,” explaining that all necessary frameworks would be carefully assessed to ensure proper implementation.
Idris also linked the power sector reform to the Tinubu administration’s broader efforts to stabilise the economy, highlighting growth in the country’s foreign reserves.
“As Nigeria stabilises, its economy is improving, and our foreign reserve is going up, as we can see, over $50bn, the highest in over eight years.
The President feels that for us to actually industrialise, the power sector must be fixed, and that is why he has taken this initiative,” Idris stated.
Nigeria’s electricity sector was unbundled and privatised in 2013 during the administration of former President Goodluck Jonathan, dividing the industry into three key segments: generation, transmission, and distribution.
While generation and distribution companies were sold to private investors, the Transmission Company of Nigeria remained under government ownership and was previously managed under a contract with Manitoba Hydro International of Canada, which ended in 2019.
The transmission network has long been considered the weakest segment of Nigeria’s electricity value chain, with frequent grid collapses and limited wheeling capacity preventing generated power from being efficiently delivered to consumers.
Meanwhile, Idris also announced that the FEC approved an exit benefit scheme that will provide up to 100 per cent of total emoluments for retiring civil servants.
He said the council approved an additional benefit that will grant up to 100 per cent of employees’ total emoluments to retiring staff of all treasury-funded ministries, departments, and agencies operating under the Contributory Pension Scheme.
“This is consistent with the provision of Section 4, Sub-section 4A of the Pension Reform Act. This is a move that is designed to improve efficiency in our civil service arrangement,” Idris stated.
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The scheme is expected to encourage voluntary retirement among senior civil servants, creating opportunities for younger officers to advance and bringing renewed energy into the public service.
The exit benefit will be separate from and in addition to pension entitlements under the Contributory Pension Scheme, which civil servants accumulate through monthly salary deductions and employer contributions.
Idris explained that the initiative forms part of the government’s wider civil service reforms aimed at boosting efficiency, lowering the wage bill, and building a more productive public sector.
Nigeria’s civil service has often been criticised for being oversized, inefficient, and resistant to reform, with many observers arguing that older employees occupying senior roles for long periods have slowed innovation and performance.
The exit benefit scheme, according to Idris, is expected to encourage older workers to retire voluntarily.
However, the minister did not provide details on eligibility requirements, the minimum years of service needed, or the timeline for implementation.
He noted that both initiatives outlined in the memos are still at the early stages of development.