Controversy has emerged following the Federal Government’s approval for the establishment of the Grid Asset Management Company to address persistent national grid failures and electricity blackouts in Nigeria.
The approval was granted during a meeting of the Federal Executive Council.
Announcing the decision after the meeting, the Minister of Information and National Orientation, Mohammed Idris, said the new company would strengthen the electricity transmission value chain.
According to him, the government identified the transmission segment as the major challenge in resolving the country’s electricity supply problems.
However, the decision has drawn criticism from experts in the power sector who warned that the new entity could duplicate the functions of the Nigeria Integrated System Operator and the Transmission Company of Nigeria.
The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, questioned the legality of establishing GAMCO under the Electricity Act 2023.
Ogaji raised concerns about the roles GAMCO would perform in relation to existing institutions in the sector.
Similarly, the President of the Nigeria Consumer Protection Network, Kunle Olubiyo, warned that the move could lead to significant job losses within the Transmission Company of Nigeria.
He questioned the fate of existing staff of the agency if the new company assumes similar responsibilities.
The development comes as Nigeria continues to struggle with declining power supply in recent weeks. The Nigeria Integrated System Operator recently attributed the drop in electricity generation to shortages in gas supply.
The controversy also follows ongoing tensions within the sector over the N6.6 trillion legacy debt owed to power generation companies.
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