President Bola Tinubu signed the Electricity Act (Amendment) Bill, 2024, into law on Friday after it was passed by the house of representatives and the senate.

The bill, sponsored by Babajimi Benson, representative of Ikorodu federal constituency of Lagos state, was passed by the house of representatives on July 27, 2023, and by the senate on November 14, 2023.

In a statement by Ajuri Ngelale, special adviser to the president on media and publicity, the bill seeks to address the development and environmental concerns of host communities.

Ngelale said it also sets aside five percent of the actual annual operating expenditures of power-generating companies (GENCOs) from the preceding year for the development of their respective host communities.

“The Bill further provides that the funds set aside for the development of host communities will be received, managed, and administered for infrastructure development in the host communities by a reputable Trustee/Manager to be jointly appointed by the respective GENCO and their host community,” Ngelale said.

The new electricity law repeals the Electricity and Power Sector Reform Act of 2005 and consolidates the laws relating to the Nigerian Electricity Supply Industry (NESI).

The Cable