…questioned GAMCO’s legality under the Electricity Act 2023.
Abuja, Nigeria — The iNews Times reports that the GAMCO establishment in Nigeria to fix the national grid and tackle persistent blackouts has generated controversy among electricity experts. The Federal Executive Council (FEC) approved the move during its meeting on Wednesday.
Announcing the approval, Minister of Information and National Orientation, Mohammed Idris, said the firm 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,” Idris said.
However, the approval has raised alarm among sector stakeholders over duplication of roles with the Nigeria Integrated System Operator (NISO) and the Transmission Company of Nigeria (TCN), especially at a time when the electricity sector faces a severe liquidity crisis.
The Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, questioned GAMCO’s legality under the Electricity Act 2023 and how it would operate alongside existing institutions.
“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?” Ogaji asked.
Similarly, Kunle Olubiyo, President of the Nigeria Consumer Protection Network, warned that the move could result in massive job losses at TCN.
“What happens to the existing staff of the current Transmission Company of Nigeria?” Olubiyo asked.
The controversy comes as the country has experienced declining power supply in recent weeks, which NISO attributed to gas shortages. Meanwhile, Generation Companies (GenCos) and the Nigerian Labour Congress recently clashed over the N6.6 trillion legacy debt plaguing the sector.
