By Isaac Akerele
President Bola Tinubu has enacted the Electricity Act (Amendment) Bill 2024 into law, with new obligations for electricity generating companies to allocate 5 percent of their annual operating expenditures in developing host Communities.
The bill, sponsored by Rep. Babajimi Benson, Ikorodu Federal Constituency, Lagos State, passed both legislative chambers late last year. Under the amended legislation, power generating companies must now set aside 5 percent of the prior year’s actual operating costs toward assisting respective host communities lacking reliable infrastructure.
The funds will be entrusted to a reputable manager jointly appointed by the GENCO and the local community leaders. The trustee will oversee infrastructure projects addressing pressing needs. Special Adviser Ajuri Ngelale said the law aims to mitigate host communities’ environmental concerns while also furthering local development priorities.
This move will prioritize impacts in regions housing power plants that bring electricity to the nation and is expected to ease tensions and foster more collaboration.
