President Bola Tinubu, Friday, February 9, 2024 signed the Electricity Act (Amendment) Bill, 2024, into law.
This development was announced by Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale in a statement titled ‘President Tinubu assents to Electricity Act (amendment) bill.’
The amended bill 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 from the preceding year for the development of their respective host communities.
It would be recalled that earlier, on June 9 2023, President Bola Ahmed Tinubu assented to the Electricity Bill thereby making it an Act, empowering States, companies, and individuals to generate, transmit, and distribute electricity.
This in turn repealed the Electric Power Sector Reform Act (EPSRA) 2005 and creates a comprehensive legal and institutional framework to guide the Nigerian Electricity Supply Industry NESI. This enactment provides the necessary boost for the continued decentralisation and liberation of the NESI and stands to promote competitiveness and efficiency in the market.
The bill, which was passed by the House of Representatives on July 27, 2023, and the Senate on November 14, 2023, was sponsored by Babajimi Benson, who represents Ikorodu Federal Constituency of Lagos State.
It also further provides that the funds allocated 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 Generation Company GENCO and their host community.
Speaking on the amended bill recently signed by Tinubu, the statement said “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.
