Tinubu Signs Electricity Act 2024 Mandating GENCOs To Fund Development Of Host Communities
President Bola Tinubu on Friday signed into law the Electricity Act (Amendment) Bill, 2024, which seeks to address grievances and foster development in communities impacted by power generation activities.
The bill, sponsored by Hon. Babajimi Benson, who represents Ikorodu Federal Constituency of Lagos State, was passed by the House of Representatives on July 27, 2023, and the Senate on November 14, 2023.
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The amendment to the enacted Electricity Act 2023 requires power generating companies (GENCOs) to contribute directly to the development of their host communities.
Five percent of their annual operating expenditures will be allocated for infrastructure projects.
The funds will be received, managed, and administered for infrastructure development by trustees/managers jointly appointed by the respective GENCOs and their host communities.
In 2023, President Tinubu signed the Electricity Act 2023, replacing the Electricity and Power Sector Reform Act of 2005, in a move aimed to break the monopoly in power generation, transmission, and distribution, and paving the way for private sector participation.
