President Bola Tinubu has approved the Electricity Act (Amendment) Bill, 2024, turning it into law. The announcement was made by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, in a statement issued on Friday.

Ngelale explained that the Electricity Act (Amendment) Bill, 2024, is designed to tackle the developmental and environmental concerns of host communities. It mandates that five percent of the actual annual operating expenditures of power generating companies (GENCOs) from the preceding year be allocated for the development of their respective host communities.

“The bill further stipulates that the allocated funds for host community development will be managed and administered for infrastructure projects in the host communities by a reputable Trustee/Manager jointly appointed by the respective GENCO and their host community,” the statement outlined.

Sponsored by Honourable Babajimi Benson, the representative of the Ikorodu federal constituency in Lagos State, the bill received approval from the House of Representatives on July 27, 2023, and from the Senate on November 14, 2023.