A Bill for an Act to amend the electric power sector to provide five per cent revenue from power generating companies for the host communities has passed the second reading.
The bill was considered in the House of Representatives on Wednesday in Abuja at the plenary.
Rep. Babajimi Benson (APC-Lagos) in his lead debate said that under the Act, five per cent of the revenue accruing from power generated by the power generating companies would be set aside for the development of host communities.
He said the revenue would be received, managed and administered by a trustee to be appointed by the GENCOs and representative of the host communities.
This, according to him, is upon agreement between the host communities and GENCOs on one part and the trustee on the other part.
According to him, the purpose of this amendment is to lawfully provide for the development of communities hosting power-generating companies across the country.
“Honourable colleagues, when passed, this bill will help to ameliorate the untold hardship and infrastructural degradation often suffered by communities hosting power generating firms.
This he added was a result of the adverse climatic, livelihood and public health effects of their activities.
He said that setting aside five per cent of revenue generated by GENCOs for developmental projects in host communities would further promote peaceful and harmonious coexistence in the communities.
He added that it would also foster sustainable shared prosperity among the communities and across the country.
He said that it would also provide direct social and economic benefits from the power generation companies to the host communities.
He said that it was pertinent to note that provision of certain funds for the development of host communities is a global best practice.
Rep. Ahmed Wase, the Deputy Speaker of the House of Representatives, while lending his voice said was a very good bill and must be allowed to pass for second reading.
He said it would take care of any unforeseen circumstances resulting from the power generation in terms of accidents that happened in the communities.
The Speaker of the House of Reps, Mr Femi Gbajabiamila, however, referred the bill to the committee on power for further consideration.
