Epileptic power supply: Experts mull comprehensive sector reform

•Say GAMCO not a silver bullet

Apparently not impressed by the epileptic power supply in the country, some concerned citizens have said that the solution to Nigeria’s power crisis will require a comprehensive sector reform and not a single intervention.

Even though they welcome the idea of President Bola Tinubu’s Grid Asset Management Company (GAMCO), they pointed out that the initiative it’s not a silver bullet.

They explained that the crisis in the sector is caused by various factors such as funding problems, energy loss, inadequate budgetary provision, corruption, leadership crisis, poor maintenance and neglect of projects, lack of technical skills, infrastructural decay, gas shortages, electricity bills/tariff shortages and low energy, among others.

The latest outburst followed the inauguration of 11-member committee by President Bola Tinubu on Grid Asset Management Company (GAMCO) recently to fast-track a quick-fix solution to the endemic problems of stranded power, grid management and transmission in the country’s electricity sector.

Chief of Staff to the President, Femi Gbajabiamila, who performed the inauguration on behalf of the president, said the committee was critical to the realisation of President Tinubu’s aspirations in Nigeria’s power sector.

Report has it that Nigeria needed about 30,000MW to power its economy properly, but currently struggling with 4,000–5,000MW for more than 200 million people.

For most Nigerians, the nation’s power crisis remains a product of systemic failure built over decades

While welcoming the idea of GAMCO, Partner/Head, Governance Advisory Practice, Olisa Agbakoba Legal, Collins Okeke, said:”It’s not a silver bullet.”

He pointed out that Nigeria’s power crisis is structural, spanning generation, transmission, distribution, and most critically, a broken tariff regime.

He explained that optimising stranded assets on the Benin-Lagos corridor by GAMCO would only address one symptom, suggesting that the solution lies in a comprehensive sector reform rather than a single intervention.

According to him, until Nigeria resolves its cost-reflective tariff deficit, gas supply constraints, and distribution inefficiencies, asset management is merely treating the symptom while the disease progresses.

 “It must be one component of a broader, disciplined reform agenda.

“GAMCO’s success depends entirely on governance discipline, insulation from political interference, and whether private capital is genuinely mobilized, not just promised,” he said.

Differentiating between GAMBO

He pointed out that GAMCO and Assets Management Company of Nigeria (AMCON), he said the latter was created to recover non-performing loans and stabilise the banking sector, describing it as a “financial rescue vehicle”.

According to him, GAMCO is an operational asset management company focused on unlocking stranded electricity capacity.

 “Different mandates, different sectors. The common thread is the state stepping in where markets have failed,” he said.

He pointed out that GAMCO can’t alone solve the power sector crisis, but can optimise what exists.

On the possibility of paying N6trillion debt  owed GenCos by the Federal Government, he said: ”Hope without a payment framework is delusion.”

Okeke pointed out that GenCo’s debt crisis reflected a systemic liquidity failure across the entire value chain.

According to him, until  government commits to a structured, time-bound payment plan backed by law, not policy pronouncements, the sector will remain technically insolvent.

To resolve power sector crisis, he wants government to implement cost-reflective tariffs with targeted subsidies for the poor.

He also called on the government to resolve the gas-to-power supply chain, and to also decentralise and empower states and private operators in distribution.

He urged the authority to insulate sector regulators from executive interference.

“GAMCO can play a role, but only within this architecture,” he said.

A social commentator, Ugoji Maximillian, noted that from 2023 to early 2025, electricity supply actually improved in many parts of Nigeria, saying that several cities reported to have 15 to 20 hours of power daily.

Also in 2025,  he said Nigeria recorded power generation peaks above 5,700 megawatts, one of the highest levels in years.

“The average national generation was around 5,000–5,700MW, a significant improvement compared to previous years,” he said

But suddenly in late 2025 and early 2026, he noted that darkness returned.

“Today many Nigerians struggle to get 6–8 hours of electricity,” he said.

It is reported that Nigeria has about 13,600MW installed power capacity, but about 4,000–5,000MW is actually generated and delivered, while more than half of Nigeria’s electricity capacity is sitting idle.

According to him, the problem wasn’t lack of power plants, but of politics, corruption and economic sabotage within the electricity system.

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He noted that gas supply to power plants suddenly dropped.

In January and February 2026, it was reported that gas supply to these plants dropped to only 43 per cent of what they need, forcing national generation to fall to about 4,300MW.

However, a Public analyst, Olufemi Adedamola Oyedele, said that in order to solve the challenges associated with power generation, transmission, distribution and incessant grid collapses,  GAMCO should be given the benefit of the doubt by allowing it to operate and see the difference the committee would be able to make

 He said the introduction of GAMBO  presented the best attempt to solve the problem of power provision through generation and distribution in Nigeria.

If economically, efficiently and effectively managed, he is of the opinion that GAMBO might be the solution to the Nigerian power problem.

“If GAMCO is devoid of corruption and political intervention, it will record tremendous improvement in the electricity transmission sector. That will be the magic.

“Assets management company like GAMCO can solve the problem of the  Nigerian Power sector. In the UK, National Grid Plc is in charge of managing the UK’s electricity transmission grid. Specifically, National Grid Electricity Transmission (NGET) operates the transmission network in England and Wales, while Scottish transmission is handled by Scottish Power and Scottish and Southern Energy (SSE),” Oyedele said.

GAMCO

Gbajabiamila said 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,” the Chief of Staff said.

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.

The Chief of Staff said the committee will conduct a comprehensive review of existing laws, regulations, policies, and institutional frameworks governing the electricity value chain, including generation, transmission, distribution, and market operations.

It will examine the implications of the Electricity Reform Laws (2025) and related unbundling arrangements on asset ownership, management, and regulatory oversight. It will identify areas of conflict, overlap, or inconsistency between the proposed GAMCO framework and extant legal and regulatory instruments.

The committee will also assess the legal status, ownership structure, and contractual obligations of the Niger Delta Power Holding Company (NDPHC) and National Integrated Power Project (NIPP) assets, including the Omotosho, Olorunshogo, and Ihovbor plants, which GAMCO plans to use for its pilot phase.

It will evaluate the interface between GAMCO’s proposed mandate and the statutory functions of the Nigeria Electricity Regulatory Commission, and determine the fiscal, financial, and market implications of the proposal, including subsidy exposure, market liquidity, and revenue frameworks.

In addition, the committee will determine whether the establishment and operationalisation of GAMCO require amendments to primary legislation, subsidy regulations, and executive directives.

The initiative is expected to address Nigeria’s power sector challenges through optimisation, private capital mobilisation, and disciplined asset management, ultimately improving electricity reliability and national competitiveness.

The Federal Government will fully own GAMCO as a commercial venture, with the shares held by the Ministry of Finance Incorporated.

The pilot phase will focus on optimising power output from the Omotosho, Olorunsogo and Ihovbor National Integrated Power Plants (NIPP plants). Omotoso’s installed capacity is 513MW, Olorunsogo’s 754 MW, and Ihovbor’s 508 MW.

GAMCO projects to recover at least 1,600 MW within 18-24 months, alongside the development of a new high-capacity 330V+ double-circuit transmission line along the same corridor.

The success of the new company during the pilot phase will lead to the establishment of a scalable model that can be extended across additional plants and corridors, forming the backbone of long-term grid stabilisation and expansion.

At present, substantial Federal Government investment in NIPP generation assets remains under-optimised due to operational inefficiencies and transmission evacuation bottlenecks, resulting in stranded capacity and suboptimal return on public capital. 

GAMCO plans to unlock the stranded power of the three selected NIPP and develop a parallel high-capacity transmission corridor along the Benin-Lagos axis, thus translating underperforming national assets into reliably delivered megawatts.

As proposed, the Niger Delta Power Holding Company will grant GAMCO the concession and lease arrangements for the three plants. TCN will grant GAMCO the right to develop, finance, and operate a greenfield 330KV+ double-circuit independent power transmission line along the identified corridor.

The ultimate aim of the initiative is to enhance industrial productivity, safeguard jobs, improve investor confidence, and boost welfare outcomes for Nigerian households, aligning with the Renewed Hope Agenda of the Tinubu administration.

GAMCO will focus on five strategic outcomes: Recover stranded generation capacity, strengthen transmission evacuation infrastructure, mobilise private capital for projects, improve market liquidity and reduce subsidy reliance, and create a scalable model for long-term grid stabilisation and expansion.