Reps approve bill for host communities to get 5% from GENCOs’ revenue

William Ukpe

3 years ago

NCC, MDA, SEEPCO, local content laws, CBN Cashless Policy: Reps eye policy reversal, court Emiefele approval , Lawmakers tackle Finance Minister over failed CCTV project worth $460 million , Former Ghanaian President, Mahama begs Buhari to open border Former President of Ghana, John Mahama has appealed to President Muhammadu Buhari to open up its borders saying that Ghana has been heavily affected by Nigeria’s decision to close its borders. Mahama said that for economic activities to resume in West Africa, Nigeria needs to reconsider its decision on the total border closure. He made this plea while delivering the seventh anniversary lecture of investiture into The Realnews Hall of Fame and the unveiling of a book, titled: Pathways to Political and Economic Development of Africa. According to the former president as reported in The Nation, the closure of especially the Benin border, was taking a significant toll on many small and medium businesses, especially in Togo, Ghana and Cote D’Ivoire, which relied on inter-country trade. “I am sure that businesses in Nigeria that rely on supplies from these countries are also suffering. With the signing of the joint border task force agreement between Nigeria and her neighbours, I will like to take this opportunity to appeal to Nigeria to open up her border so that economic activities can resume,” Mahama said. While reacting to the shut down of shops owned by Nigerians by the Ghana Union of Traders’ Association (GUTA) as retaliation to the border closure, Mahama said; “Back home in Ghana, I also look forward to our government’s intervention that brings an immediate cessation to the forceful and illegal closure of shops of foreigners, especially Nigerians, by members of the local trade associations”. Mahama who is a former Chairman of the Economic Community of West Africa States (ECOWAS) spoke on how he still has an abiding interest in the progress of ECOWAS and its people. In this light, he said that Nigeria being the home of ECOWAS and the largest economy in West Africa should not allow the objective principles for establishment of ECOWAS to be lost. Meanwhile, the Vice Chancellor of Niger Delta University, Bayelsa State, Prof. Samuel Edoumiekumo, advised President Muhammadu Buhari not to yield to pressure to reopen the borders. Edoumiekumo who was also present at the lecture said President Buhari should remain firm in his resolve to ensure economic growth and the country’s development as the border closure will generate more revenue for the nation and tackle smuggling., Nigerians are enraged as lawmakers reject Innoson cars for latest Toyota Camry , FMBN ex-MD ordered to refund his salary, submit FMBN accounts over infractions

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.

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“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.