President Bola Tinubu, has formally approved and enacted the Electricity Act (Amendment) Bill, 2024, thus making it legally binding.
The legislation, which received approval from the House of Representatives on July 27, 2023, and later from the Senate on November 14, 2023, was supported by Honourable Babajimi Benson, who serves as the representative of the Ikorodu Federal Constituency in Lagos State.
The primary objective of the 2024 Electricity Act (Amendment) Bill is to take into account the developmental and environmental concerns of host communities.
The bill proposes allocating five percent of the total annual operating expenses of power generating companies (GENCOs) from the previous year towards the development of their respective host communities.
The proposed legislation also states that the funds allocated for the progress of host communities will be received, handled, and overseen for the purpose of developing infrastructure in the host communities. This responsibility will be entrusted to a trusted Trustee/Manager who will be jointly chosen by the respective power generation companies (GENCOs) and their respective host communities.
