The House of Representatives has approved for final reading, a law compelling Power Generating Companies in the country to set aside 5% of the revenue they generate from selling electricity for communities hosting electricity installations.
The bill titled “An Act to Amend the Electric Power Sector Reforms Act, to Provide for the Reservation of 5 Percent of all Revenue Accruing from Power Generating Companies in Nigeria for the Development of the Host Communities,” was sponsored by Rep. Babajimi Benson (APC-Lagos) and considered in the lower legislative chamber on Wednesday.
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What Rep Babajimi Benson said
According to Benson, the purpose of this amendment is to lawfully provide for the development of communities hosting power-generating companies across the country.
“Honourable colleagues, power generation, transmission, distribution and usage is known to cause huge harmful environmental and health challenges for host communities. In fact, it is almost impossible to produce, transmit and consume power without significant environmental impact. The electricity sector is unique among industrial sectors in its very large contribution to emissions associated with nearly all climatic and health issues.
“Honourable colleagues, when passed, this bill will help to ameliorate the untold hardship and infrastructural degradation often suffered by communities hosting power generating firms,” he said.
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Benson added that the revenue would be received, managed and administered by a trustee to be appointed by the GENCOs and representatives of the host communities.
He also stated that the necessity of the bill is to boost the development of host communities that generate power for transmission, citing that it would also help reverse hardships and infrastructure decay in the communities, and also further promote peaceful and harmonious coexistence in the communities.
What you should know
In the recently approved PIB by the National Assembly, the Host Community Development Fund is a Host Communities Development Trust which will oversee all Environmental, Social and Infrastructure projects in the communities where oil and gas assets are located.
Truly dumb legislation. Why stop there? Why not legislate that the Nigerian Stock Exchange pay 5% of its revenues to the Lagos Island community? SMH