ELECTRICITY (AMENDMENT) ACT
Act · Infrastructure
Policy date: 2026-03-04
An Act updates Nigeria's power sector law, strengthening hydroelectric funding and environmental protections. It mandates that power generating companies ensure host communities benefit from electricity projects. The law aims to make electricity supply more reliable while protecting local environments.
What Is This Policy?
The Electricity (Amendment) Act, 2024 is Nigeria’s updated law that makes sure host communities benefit from electricity projects, strengthens hydroelectric development funding, and enforces environmental protection while reforming the power sector.
Who Does It Target?
It targets host communities, hydroelectric host communities, and power generating companies, ensuring that communities benefit from electricity projects while enforcing environmental and funding obligations
What Does It Aim to Achieve?
The act aims to make electricity supply more reliable, ensure host communities benefit, protect the environment, and strengthen hydroelectric development funding.
Key Features
Host Community Development: Power generating companies (GenCos) must allocate 5% of their annual operating expenditure to infrastructure and development projects in host communities.
Environmental Protection: Mandates GenCos to integrate environmental safeguards into their operations.
Sector Reform: Addresses challenges in generation, transmission, distribution, and consumption.
Current Status
The Electricity (Amendment) Act, 2024 is in force, as it is described as Nigeria's updated law for the power sector.
Legal Framework
Electricity Act 2023 (principal Act being amended); Constitution of the Federal Republic of Nigeria 1999 (Section 14(2)(c) on derivation); Nigerian Electricity Regulatory Commission Act; National Electric Power Policy