The House of Representatives has advocated the direct payment of five per cent of revenue from electricity generated by power generating companies (GenCos) to their host communities.
This is as the House passed for a second reading, ‘A Bill For An Act to Amend the Electricity Act, 2023’ to address concerns of host communities.
The proposed piece of legislation, sponsored by Hon. Babajimi Benson (APC, Lagos), seeks the removal of sections 95(2c and d) of the principal Act in order to include Geregu Power Plant in the schedule of the GenCos in the country and discontinue the release of host communities 5% fund to Hydro Power Producing Areas Development Agency (HYPPADEC).
In a lead debate, Hon. Benson explained that the Bill seeks to address some lacunas in the existing Act, particularly the exclusion of Geregu Power Plant from the schedule of the 19 GenCos and host concerns by communities.
He argued that: “Going through the bill, there are 19 GENCOS in Nigeria but the bill omits one, and the one omitted is Igeregu power plant. My request is that we include Igeregu in the schedule of the GENCOS we have in Nigeria.
“Secondly, the host communities that are cited, that percentage of the revenue from the GENCOS companies apply directly them.
“However, what the bill says is that the amount earmarked for host communities development should be sent to HYPPADEC which is hydro producing area agency. I do not think that is appropriate.”
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