- The 2024 Electricity Act (Amendment) Bill allocates five per cent of power-generating companies’ previous year’s operating expenditures to address developmental and environmental concerns in host communities.
- Proposed amendments ensure transparent and accountable utilization of these funds, managed by a Trustee/Manager jointly appointed by power-generating companies (GENCO) and their host communities.
President Bola Ahmed Tinubu has signed the 2024 Electricity Act (Amendment) Bill into law. The law aims to address both the developmental and environmental concerns within host communities.
A pivotal feature of this legislation is the allocation of five per cent from the actual annual operating expenditures of power-generating companies in the previous year.
This dedicated fund is specifically earmarked for the development of their respective host communities. Under the proposed amendments, the funds designated for community development will be channelled through a transparent and accountable process.
A trustworthy and esteemed Trustee/Manager, collaboratively selected by both the power-generating companies (GENCO) and the communities they serve, will assume the responsibility of overseeing the entire process, encompassing the receipt, management, and administration of the allocated funds. This ensures a transparent and accountable mechanism in the utilization of resources designated for community development.
This groundbreaking legislative initiative achieved a significant milestone by garnering approval in the House of Representatives on July 27, 2023. Subsequently, it received further endorsement through Senate approval on November 14, 2023.
The comprehensive support and validation from both chambers of the legislature underscore the importance and effectiveness of this proposed framework. At the forefront of this transformative endeavour is Babajimi Benson, the representative for the Ikorodu Federal Constituency in Lagos State.
His unwavering commitment to championing this bill signifies a broader dedication to advancing sustainable development and addressing the distinctive needs of the communities involved, particularly in the dynamic context of electricity generation. Through this legislation, a clear path is paved for enhanced collaboration, empowerment, and positive transformation within these communities.
Note that the Electricity Act was signed into law in 2023 by President Tinubu, empowering states to generate and distribute electricity from both on-grid and off-grid sources.