New Telegraph

Tinubu Assents to New Electricity Act

…As FG Sets up Inter-Ministerial Panel on Gas Shortage

President Bola Tinubu has signed the Electricity Act (Amendment) Bill, 2024, into law. This was disclosed yesterday by the Special Adviser to the President (Media & Publicity), Ajuri Ngelale. Ngelale explained that the bill, which was passed by the House of Representatives on July 27, 2023, and the Senate on November 14, 2023, was sponsored by Hon. Babajimi Benson, who represents Ikorodu Federal Constituency in Lagos State. According to him, the Electricity Act (Amendment) Bill, 2024, seeks to address the development and environmental concerns of host communities and sets aside five per cent 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, man- aged, 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. Meanwhile, the Minister of Power, Chief Adebayo Adelabu, alongside his counterpart in the Ministry of Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, have set up a committee towards resolving gas shortage crisis affecting power generating companies. When operational, the committee will consist of representatives from the two ministries, gas suppliers, the Nigeria Electricity Regulatory Commission (NERC) and stakeholders in the electricity value chain sector.

This is coming just as the minister also had a meeting with foreign development partners operating in the country during the week with a view to improve the country’s capacity to shore up power sector. At the meeting, Adelabu urged them not to relent in their continued support for the country just as he also briefed the partners on the federal government’s transformation master plan being undertaken by his ministry to improve power supply across the nooks and crannies of the country. “When we resumed here, we spent the first three months to diagnose and investigate issues that have affected development in the power sector and why the sector is still at the level it is today and the factors militating against the turnaround that is envisaged in the sector.

“We consulted, we engaged all the stakeholders. At the end of the diagnosis and investigation, we had a full understanding of the situation. “We discovered that most of the problems in the sector are not all technical or engineering-related, it actually has to do with liquidity, funding, structural or operational issues which anybody, that has the commitment, could resolve. “Though they are simple issues, they are in multiples, complicated and permeate all the sectors in the value chain. “We met as a team to provide practical solutions and came up with a timing template on those issues that can be resolved in the short term, mid-term and those that can be resolved on the long haul and we capped these activities up in December, last year when we had a ministerial retreat where we had the various stakeholders, cutting across the value chain, in attendance.”

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