The House of Representatives has passed the second reading of a Bill to Amend the Electric Power Sector Reforms Act 2005 to provide for the reservation of five per cent of all Revenue Accruing from Power Generated by all Power Generating Companies in Nigeria for the Development of the Host Communities.
Leading debate on the bill, sponsor, Mr. Babajimi Benson from Lagos State explained that the bill is to lawfully provide for the development of communities hosting power generating companies across the country.
He expressed concern that the electricity sector is known to have significant impact on water habitat and species, leading to the destruction of aquatic life and consequently the disruption of sources of livelihood for host communities.
The lawmaker, stated that “when passed, the bill will help to ameliorate the untold hardship and infrastructural degradation often suffered by communities hosting power generating firms as a result of the adverse climatic, livelihood and public health effect of their activities.
According to him, host communities of all generating companies (GENCOs) shall be entitled to 5% of the firms’ previous year’s actual operating expenditure.”
The sponsor of the bill stated that money accruing from this fund will be applied to sustainable infrastructure development projects, job creation, and improvement of education, empowerment and skills acquisition for youths, women and other vulnerable groups.
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