President Bola Tinubu has officially signed the Electricity Act (Amendment) Bill, 2024 into law, marking a significant milestone in Nigeria’s energy sector.
The announcement was made by Ajuri Ngelale, the Special Adviser on Media and Publicity to President Tinubu, in a statement titled: ‘President Tinubu’s Endorsement of Electricity Act (Amendment) Bill’, issued in Abuja.
The bill, sponsored by Babajimi Benson of Lagos State’s Ikorodu Federal Constituency, received ratification from the House of Representatives on July 27, 2023, and the Senate on November 14, 2023.
The amended Electricity Act aims to address developmental and environmental concerns affecting host communities.
One of its key provisions allocates five percent of the previous year’s actual annual operating expenditures of power generating companies (GENCOs) for the advancement of their respective host communities.
In the statement, President Tinubu emphasized the significance of the bill in addressing the needs of host communities and ensuring their sustainable development.
He highlighted that the funds earmarked for host community development will be managed and disbursed for infrastructure advancements within the host communities by a reputable Trustee/Manager jointly appointed by the relevant GENCO and their respective host community.
Earlier in 2023, President Tinubu had assented to the 2023 Electricity Act, which replaced the Electricity and Power Sector Reform Act of 2005.
The Act aimed to de-monopolize Nigeria’s electricity generation, transmission, and distribution at the national level, empowering states, companies, and individuals to participate in the electricity sector.
One of the key features of the Electricity Act is the provision allowing states to issue licenses to private investors for operating mini-grids and power plants within their jurisdictions.
However, the Act restricts interstate and transnational electricity distribution, focusing on enhancing local electricity generation and distribution.
President Tinubu’s endorsement of the amended Electricity Act underscores the government’s commitment to addressing critical issues in the energy sector and promoting sustainable development in Nigeria’s host communities.
