Get Paid to Read News Everyday!

Sign up below...

Whatsapp Channel

President Tinubu Signs Amended Electricity Bill into Law

Federal Government Reveals 92 Million Nigerians Lack Access to Electricity Geometric Power and NCC Collaborate to Enhance Electricity Supply in Aba, Abia State Nigerians Anxious as Tinubu Government Considers Removing Electricity Subsidy President Tinubu Signs Amended Electricity Bill into Law

New Legislation Aims to Address Developmental and Environmental Concerns in Host Communities

President Bola Tinubu has officially signed the Electricity Act (Amendment) Bill, 2024, into law, marking a significant milestone in Nigeria’s energy sector reform.

The bill, sponsored by Babajimi Benson of Lagos State’s Ikorodu Federal Constituency, was passed by both the House of Representatives on July 27, 2023, and the Senate on November 14, 2023.

The amended legislation targets the developmental and environmental challenges faced by host communities of power-generating companies (GENCOs).

It mandates that five per cent of the previous year’s actual annual operating expenditures of GENCOs be allocated for infrastructure advancements within these communities.

According to Ajuri Ngelale, the Special Adviser on Media and Publicity to President Tinubu, the funds earmarked for host community development will be managed and disbursed for infrastructure advancements by a reputable Trustee/Manager jointly appointed by the respective GENCO and their host community.

This move builds upon previous energy sector reforms initiated by President Tinubu, including the assent to the 2023 Electricity Act, which replaced the Electricity and Power Sector Reform Act of 2005.

The 2023 Act aimed to decentralize Nigeria’s electricity generation, transmission, and distribution, empowering states, companies, and individuals to participate in these processes.

Under the provisions of the Electricity Act, states have the authority to issue licenses to private investors for the operation of mini-grids and power plants within their jurisdictions, thereby promoting localized energy solutions. However, interstate and transnational electricity distribution remain excluded from the Act’s scope.

President Tinubu’s endorsement of the Electricity Act (Amendment) Bill signifies a continued commitment to addressing the challenges and promoting sustainable development in Nigeria’s energy sector, particularly in the welfare of host communities.


This Article is Fact-Checked. See Policy.
Total
0
Shares

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Posts