President Bola Tinubu has taken a significant step forward in the nation’s energy sector by signing the Electricity Act (Amendment) Bill, 2024, into law. The announcement was made by Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale, in a statement released on Friday, titled ‘President Tinubu assents to Electricity Act (amendment) bill.’
The amended Electricity Act, 2024, is designed to address crucial issues related to the development and environmental concerns of host communities. One of its key provisions mandates power generating companies to allocate five percent of their actual annual operating expenditures from the preceding year for the development of their respective host communities. This move signifies a significant commitment to community development and environmental sustainability within the energy sector.
The bill, which received unanimous support in both chambers of the National Assembly, was sponsored by Babajimi Benson, representing the Ikorodu Federal Constituency of Lagos State. Its passage through the legislative process underscores the collaborative efforts of lawmakers in prioritizing the nation’s energy infrastructure and addressing the needs of host communities.
Among its notable features, the amended Electricity Act stipulates that the funds allocated for the development of host communities will be managed and administered for infrastructure development by a reputable Trustee/Manager. This mechanism ensures transparency and accountability in the utilization of resources, thereby fostering trust and cooperation between power generating companies and their host communities.
The signing of the Electricity Act (Amendment) Bill, 2024, represents a significant milestone in the ongoing efforts to reform Nigeria’s energy sector. By enacting legislation that prioritizes community development and environmental stewardship, President Tinubu demonstrates his administration’s commitment to fostering sustainable growth and progress.
Furthermore, the amended Electricity Act reflects a broader vision for the nation’s energy future, one that embraces innovation, efficiency, and inclusivity. By incorporating provisions that address the needs of host communities, the legislation not only promotes economic development but also ensures that the benefits of energy production are equitably distributed across society.
In light of Nigeria’s aspirations for economic advancement and environmental sustainability, the signing of the Electricity Act (Amendment) Bill, 2024, is a welcome development. It signals a proactive approach to addressing the challenges facing the energy sector while laying the groundwork for a more resilient and prosperous future.
Looking ahead, the implementation of the amended Electricity Act will be crucial in realizing its objectives and delivering tangible benefits to host communities. It will require close collaboration between government agencies, regulatory bodies, power sector stakeholders, and local communities to ensure effective implementation and oversight.
