On Friday, President Bola Tinubu officially enacted the Electricity Act (Amendment) Bill of 2024, turning it into law.
Ajuri Ngelale, the Special Adviser on Media and Publicity to President Tinubu, conveyed this announcement in Abuja through a statement titled ‘President Tinubu’s endorsement of Electricity Act (Amendment) Bill’.
This bill, championed by Babajimi Benson of Lagos State’s Ikorodu Federal Constituency, received approval from the House of Representatives on July 27, 2023, and subsequently from the Senate on November 14, 2023.
Furthermore, it mandates that funds allocated for the development of host communities shall be overseen and distributed for infrastructure enhancements within those communities by a reputable Trustee/Manager, appointed in collaboration with the relevant GENCO and their respective host community.
In line with the President’s remarks, the Electricity Act (Amendment) Bill of 2024 is geared towards addressing the developmental and environmental concerns affecting host communities. It designates five percent of the previous year’s actual annual operating expenditures of power-generating companies for the progress of their respective host communities.
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What The Bill Addresses
“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.”
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Key Points to Remember
- Earlier in 2023, President Tinubu endorsed the 2023 Electricity Act, replacing the Electricity and Power Sector Reform Act of 2005.
- The Act aimed to decentralize Nigeria’s electricity generation, transmission, and distribution at the National level, empowering states, companies, and individuals to engage in these activities.
- The Electricity Act was initially passed in July 2022 under the Muhammadu Buhari administration.
- The Act allows states to grant licenses to private investors for operating mini-grids and power plants within their jurisdiction, excluding interstate and transnational electricity distribution.
