THE establishment of Grid Asset Management Company (GAMCO) to address national grid and blackout challenges in Nigeria is raising questions about agency duplication responsibilities in the power sector.
The Transmission Company of Nigeria (TCN) has been unbundled, and currently maintains the grid, repairs lines and substation. It also sustains field operations related to transmission.
The Nigerian Independent System Operator (NISO) currently controls power supply flow, dispatches electricity and ensures grid stability.
At a time when the electricity sector is struggling with debt problems, questions are being raised over duplication of responsibilities with GAMCO, which has already been approved by the FEC.
“GAMCO, TCN, NDPHC and FGN PowerCo all deal with aspects of transmission infrastructure. There’s a need for streamlining to ensure a wholistic and harmonised approach to transmission issues, including alignment with NISO on resolving dispatch bottlenecks,” said former managing director of the Niger Delta Power Holding Company of Nigeria (NDPHC), Nnaemeka Ewelukwa.
The ICIR reports that the Federal Executive Council (FEC) approved GAMCO at its meeting on Wednesday, March 4.
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…largely in the transmission section,” the minister said while announcing the approval after the FEC meeting.
However, the approval has raised some dust as electricity sector governance experts 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 (APGC), 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 happens 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.
The ICIR reports that GenCos and the Nigerian government recently clashed over the N6.6 trillion power sector legacy debt.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.
It a welcome development provide they work according to the laws & regulations of their roles.