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President Bola Tinubu has taken a decisive step towards transforming Nigeria’s electricity sector by signing the Electricity Act (Amendment) Bill, 2024, into law. This landmark legislation, passed by both the House of Representatives on July 27, 2023, and the Senate on November 14, 2023, represents a significant milestone in the nation’s quest for sustainable energy development.
Sponsored by Hon. Babajimi Benson, representing the Ikorodu Federal Constituency of Lagos State, the bill aims to revolutionize the relationship between power firms and the communities they serve. Under this new law, power companies are mandated to contribute to the development of their host communities, ushering in a new era of social responsibility and community engagement within the electricity sector.
According to a statement by Presidential spokesman, Ajuri Ngelale, the Electricity Act (Amendment) Bill, 2024, seeks to address the development and environmental concerns of host communities, and sets aside five percent of the actual annual operating expenditures of power generating companies (GENCOs) from the preceding year for the development of their respective host communities.
The Bill further provides that the funds set aside for the development of host communities will be received, managed, and administered for infrastructure development in the host communities by a reputable Trustee/Manager to be jointly appointed by the respective GENCO and their host community.