President Tinubu Signs Electricity Act (Amendment) Bill into Law
By Matthew Eloyi
President Bola Tinubu has officially signed the Electricity Act (Amendment) Bill, 2024, solidifying a significant step towards addressing developmental and environmental concerns within host communities.
This crucial legislative move was confirmed by Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale, in a statement released on Friday under the title ‘President Tinubu assents to Electricity Act (amendment) bill.’
The newly enacted bill, which gained bipartisan support, aims to allocate five per cent of the previous year’s actual annual operating expenditures of power-generating companies towards the development of their respective host communities. This allocation is specifically intended to address infrastructure needs and environmental considerations within these communities.
Originally introduced by Babajimi Benson, the representative of Ikorodu Federal Constituency of Lagos State, the bill successfully navigated through the legislative process, passing both the House of Representatives on July 27, 2023, and the Senate on November 14, 2023.
Key provisions of the bill include the establishment of a mechanism for the receipt, management, and administration of the allocated funds by a trusted Trustee/Manager jointly appointed by the respective power generating companies (GENCOs) and their host communities. This ensures transparency and accountability in utilizing the funds for infrastructure development within these communities.
With the signing of this bill into law, President Tinubu underscores the government’s commitment to fostering sustainable development and addressing the needs of communities hosting power generation facilities. This legislative milestone signifies a collaborative effort towards achieving equitable growth and environmental stewardship in Nigeria’s energy sector.