In a move hailed as a victory for community empowerment and sustainable development, President Bola Tinubu has put pen to paper, signing the Electricity Act (Amendment) Bill, 2024, into law.
This legislation, which passed through both chambers of the National Assembly last year, is set to revolutionize the relationship between power-generating companies and their host communities.
“This bill represents a crucial step towards addressing the pressing needs of our host communities,” remarked President Tinubu in a statement following the signing. “It underscores our commitment to fostering inclusive growth and environmental sustainability.”
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According to Ajuri Ngelale, Tinubu’s Special Adviser on Media and Publicity, the legislation mandates that five percent of the actual annual operating expenditures of power-generating companies from the preceding year be allocated for the development of their respective host communities.
“This is a significant departure from the status quo, where communities often bear the brunt of industrial activity without reaping commensurate benefits,” Ngelale emphasized.
Babajimi Benson, the bill’s sponsor, and representative of Ikorodu Federal Constituency of Lagos State, lauded the passage of the bill as a win for grassroots advocacy.
“This legislation is a testament to the power of collaboration and community engagement,” Benson asserted. “It signals a new era of accountability and social responsibility in the energy sector.”
Under the provisions of the bill, funds earmarked for community development will be managed and administered by a reputable Trustee/Manager jointly appointed by the respective power-generating companies and their host communities.
This ensures transparency and effective utilization of resources for infrastructure projects aimed at improving the quality of life for residents.
With the Electricity Act (Amendment) Bill now enshrined in law, stakeholders are optimistic about the positive impact it will have on host communities nationwide.
As Nigeria strives to meet its energy needs while promoting sustainable development, this legislative milestone marks a significant stride towards a brighter, more inclusive future.