News Infrastructures

Nigeria Considers New Company to Fix Weaknesses in Power Transmission Grid

Nigeria Considers New Company to Fix Weaknesses in Power Transmission Grid
Friday, 06 March 2026 16:07
  • Nigeria is considering creating a Grid Asset Management Company (GAMCO) to manage transmission infrastructure.

  • The move targets a key bottleneck in the country’s electricity system: limited transmission capacity.

  • The proposal is part of broader reforms in Nigeria’s power sector, including debt settlement and subsidy changes.

Nigeria is considering the creation of a new company responsible for managing and modernizing the country’s electricity transmission infrastructure, part of broader reforms aimed at improving the performance of the national power system.

President Bola Tinubu has proposed the establishment of a Grid Asset Management Company (GAMCO), according to reports published March 5 by local media outlets.

The proposed entity would oversee key components of the transmission network, including high-voltage transmission lines, substations, and transformers that move electricity across the country.

Authorities say weaknesses in the transmission network remain one of the main obstacles to improving Nigeria’s electricity supply.

Information Minister Mohammed Idris said the president has identified transmission as a central problem in efforts to address the country’s long-standing power crisis.

Even when generation capacity is available, limitations in the transmission grid often prevent electricity from being fully delivered to distribution companies and end users.

According to the Nigerian newspaper The Punch, establishing the new company could require legislation from Parliament. The proposal is currently under review by a government committee tasked with examining its legal and financial implications.

The initiative comes as the federal government continues broader reforms in the power sector. In late January, authorities announced they had raised 501 billion naira (about $360 million) through a bond issuance to help settle part of the sector’s accumulated debts.

These arrears include payments owed to power producers and other participants across the electricity value chain.

At the same time, the government has begun reforming how electricity subsidies are financed. Abuja has said the federal government will no longer bear the full cost of subsidies and is calling on state governments to contribute.

The change is part of wider efforts to ease fiscal pressure linked to supporting electricity tariffs.

Abdel-Latif Boureima

On the same topic
The World Bank is preparing a $175 million loan to rehabilitate Uganda's northeastern road corridor. The 340-kilometer trade artery links...
Zimbabwe and Zambia signed an MoU for a 311 km rail link to support mining exports. The project could reduce transport distances to Beira port by...
Funding would modernize signaling on Tema–Mpakadan line Upgrade aims to allow simultaneous train movements Project tied to broader push to...
World Bank to mobilize $550 million for Kenya road project Project to upgrade 508 km, boosting regional trade links Corridor to cut...
Most Read
01

EBID aims to allocate nearly 41% of its commitments to environmentally and socially impactful projec...

EBID Charts Green Shift to Finance West Africa’s Growth
02

M-PESA evolves into major financial platform with 35 million users Telecoms, fintechs expan...

In Africa, Banks Face a New Rival: Telecom Operators
03

Algeria launches bid for two NGSO satellite telecom licenses Move aims to expand broadband ac...

Algeria Opens Satellite Market to Competition, Inviting Global Operators
04

Coca-Cola unit trains 260+ SMEs in Namibia business skills Program targets women, youth, disabled...

Over 260 Namibian SME Owners Trained as Sector Faces Mounting Losses
05

Driven by above-average growth and rapidly expanding demographics, Francophone Africa is emerging as...

Francophone Africa: A Rising Economic Giant With Weak Internal Trade
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.