President Bola Tinubu has officially signed the Electricity Act (Amendment) Bill 2024 into law, marking a significant milestone in Nigeria’s energy sector.
The bill, which was sponsored by Babajimi Benson, a representative of the Ikorodu federal constituency of Lagos State, passed through the House of Representatives on July 27, 2023, and the Senate on November 14, 2023.
One of the key provisions of the Electricity Act (Amendment) Bill 2024 is the allocation of five per cent of the actual annual operating expenditures of power-generating companies (GenCos) from the preceding year for the development of their respective host communities. This move is aimed at addressing the development and environmental concerns of these communities.
Furthermore, the bill outlines the establishment of a framework for the proper management and administration of the funds designated for the development of host communities. A reputable trustee or manager, jointly appointed by the respective GenCos and their host community, will oversee the allocation and utilization of these funds for infrastructure development within the host communities.
With the signing of this bill into law, it is expected that there will be a more concerted effort towards sustainable community development, as well as an increased focus on environmental considerations within the energy sector.
The enactment of the Electricity Act (Amendment) Bill 2024 reflects a commitment to addressing the needs of local communities and signifies a positive step towards ensuring a more inclusive and environmentally conscious approach to power generation and distribution in Nigeria.
