ELECTRICITY (AMENDMENT) ACT
Act · Energy
Policy date: 2024-01-01
An Act amends electricity laws to ensure host communities benefit from projects and strengthen environmental protection. It targets power generating companies and hydroelectric host communities. This aims to make electricity supply more reliable and sustainable.
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
Rollout Stage: early implementation stage Coverage: applies nationwide Beneficiaries to Date: host communities & consumers Nationwide Funding: GenCos contribution, N-HYPPADEC funds
Important Terms
Term 1- Host Communities Communities where power generating companies (GenCos) operate. The Act mandates GenCos to allocate 5% of their annual operating expenditure for infrastructure and development projects in these communities. Term 2- Environmental Protection The Act emphasizes sustainability by requiring GenCos to integrate environmental safeguards into their operations. Aligns with Nigeria’s energy transition goals 📌 Official Access Points Nigerian Electricity Regulatory Commission (NERC) NERC is the primary regulator of Nigeria’s electricity sector. Official Website: https://nerc.gov.ng Federal Ministry of Power Oversees electricity policy and implementation. Official website: https://power.gov.ng National Assembly of Nigeria (NASS) Provides legislative records and acts. Website: https://nass.gov.ng 📞 Contact Information Nigerian Electricity Regulatory Commission (NERC) Headquarters: Plot 1387, Cadastral Zone A00, Central Business District, Abuja, Nigeria. Phone: +234 (0) 9 462 1400 Email: [email protected] Federal Ministry of Power Headquarters: Federal Secretariat Complex, Abuja, Nigeria. Phone: +234 (0) 9 234 0627 Email: [email protected]
Legal Framework
The Electricity (Amendment) Act 2024 amends the Electricity Act 2023 and operates within the same framework — the 1999 Constitution (Item 14 of the Exclusive Legislative List on electricity, as amended by the Fifth Alteration to allow state electricity markets), the Nigerian Electricity Regulatory Commission (NERC) Rules, and the Nigerian Bulk Electricity Trading (NBET) Act. It aligns with the National Renewable Energy and Energy Efficiency Policy and Nigeria's SDG 7 commitments.