President Bola Ahmed Tinubu on Friday signed the Electricity Act (Amendment) Bill, 2024 into law.
This was disclosed in a press statement issued by his special adviser on Media and Publicity, 𝐀𝐣𝐮𝐫𝐢 𝐍𝐠𝐞𝐥𝐚𝐥𝐞, saying the new law was assented to by the President after it was passed by the National Assembly.
The statement said the bill, which was passed by the House of Representatives on July 27, 2023, and the Senate on November 14, 2023, was sponsored by Babajimi Benson, who represents Ikorodu Federal Constituency of Lagos State.
The statement continued: “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.”
Recall that President Tinubu shortly after he was inaugurated signed the Electricity Act of 2023 into law, marking an important development in Nigeria’s electricity sector.
This Act aims to break the monopoly in electricity generation, transmission, and distribution at the national level.
The Act grants the power to generate, transmit, and distribute electricity to states, companies, and individuals. To fully grasp the significance of this Act, it is essential to understand the distinction between this action and the constitutional amendment signed by former President Muhammadu Buhari in March 2023.
Recall that in March 2023, SaharaReporters reported how Nigeria’s former President Buhari also signed a constitutional amendment allowing states to licence the generation, transmission, and distribution of electricity.