The establishment of Grid Asset Management Company (GAMCO), aimed at addressing the national grid and blackout issues, is sparking controversy across Nigeria.
The Federal Executive Council, FEC, made the approval at its meeting on Wednesday.
Minister of Information and National Orientation, Mohammed Idris, said the firm’s establishment would strengthen the electricity transmission value chain.
“The President has seen that where the problem is mainly in our quest to solve the power problem is largely in the transmission section,” the minister said while announcing the approval after the FEC meeting.
However, the approval has stirred controversy as experts in the country’s electricity sector raised alarm over duplication of roles with Nigeria Integrated System Operator, NISO, and Transmission Company of Nigeria, TCN, at a time the sector faces a liquidity crisis.
The Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, queried the duplication of roles with NISO and GAMCO’s legality in line with the Electricity Act, 2023.
“This raises many questions. What is NISO’s role? Is this formation in accordance with the EA 2023? Is TSP being phased out or will it operate side by side? What asset is this GAMCO going to manage?” She queried.
Also, the President of the Nigeria Consumer Protection Network, Kunle Olubiyo, said the move could lead to massive job losses in TCN.
“What happenes to the existing staff of the current Transmission Company of Nigeria?” Olubiyo asked.
This comes as the country grapples with a drop in power supply in the past weeks, which NISO attributed to a shortage in gas supply.
GenCos and the Nigerian Labour recently clashed over the N6.6 trillion power sector legacy debt.
