Yesterday, the Electricity Act (Amendment) Bill, 2024 was signed into law by President Bola Tinubu.
The law was introduced by Hon. Babajimi Benson, a representative for Lagos State’s Ikorodu Federal Constituency. It was approved by the House of Representatives on July 27, 2023, and the Senate on November 14, 2023.
In order to address the development and environmental concerns of host communities, the Electricity Act (Amendment) Bill, 2024 allocates 5% of the actual yearly operating expenditures of power generating companies (GENCOs) from the previous year to the development of those communities.

The Act additionally stipulates that a respected Trustee/Manager, to be jointly nominated by the relevant GENCO and their host community, will receive, manage, and administer the money set aside for the development of host communities for the purpose of developing infrastructure in the host communities.
The Act permits states, businesses, and individuals to produce, transmit, and distribute electricity and ensures the decentralization and demonopolization of Nigeria’s power generation, transmission, and distribution at the national level.
The Act gives States the authority to provide licenses to private investors, allowing them to establish and run power plants and mini-grids within their borders.

The following licenses can be obtained: a license for the production of electricity (excluding captive generation); a license for the transmission, distribution, and supply of electricity; a license for system operation; and a license for electricity trading. With the use of these permits, private companies can engage in all facets of the electrical value chain, fostering innovation and competition to meet Nigeria’s expanding energy demands. In addition, the Act states that an individual may operate or build an undertaking without a license if it is intended to generate electricity at a site with a total capacity of no more than one megawatt (MW), distribute electricity at a site with a total capacity of no more than one hundred kilowatts (KW), or use any other capacity that the Commission deems appropriate. To put it another way, someone can build, own, or run a business for the purpose of producing electricity or distributing electricity without needing a license, as long as the business’s construction, ownership, or operation doesn’t exceed 1MW or its distribution doesn’t exceed 100KW. Nonetheless, the Act forbids the distribution of power across state lines and internationally.

In a related event, Oyo State Electricity Regulatory Commission Bill 2024 was signed into law by Governor Seyi Makinde yesterday.
The signing ceremony took place at the Conference Room of the Governor’s Office, Secretariat, Agodi, Ibadan. The governor stated that the purpose of the signing was to provide the state with the chance to create its own plan for achieving sustainable power.

According to the governor, decentralization of energy generation, transmission, and distribution has made it clear that Nigerians may benefit from democratic dividends if federalism is implemented correctly and more authority is given to the states.

“We are signing the Oyo State Electricity Regulatory Commission Bill 2024 into law today, as promised earlier in the week,” he declared. Oyo State will be able to produce, transmit, and distribute power within the State thanks to this law.

“When we support fiscal federalism, we mean constitutional amendments such as these. As we strive toward energy independence in the next years, our citizens will be able to hold state governments responsible for the provision of electricity.
Deputy Speaker of the Oyo State House of Assembly, Hon. Mohammed Fadeyi, stated during the bill’s earlier presentation that this is the first time the state has developed an autonomous electrical plant.

Deputy Governor Barr. Bayo Lawal, Secretary to the State Government Prof. Olanike Adeyemo, Governor Segun Ogunwuyi’s Chief of Staff, and Head of Service Mrs. Olubunmi Oni (mni) were present at the bill signing.
Deputy Speaker of the House of Assembly, Hon. Fadeyi; Chairman of the House Committee on Energy, Hon. Deji Oparinde; and Committee Member, Hon. Gabriel Babajide were present.

Additionally present were Mr. Temilolu Ashamu, Commissioner for Energy, Mr. Biodun Aikomo, Commissioner for Justice and Attorney General, and Dr. Saka Balogun, Chairman and Elder Wole Oyelese, Co-Chairman of the Oyo State Elders’ Council.

By xplora

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