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The House of Representatives has accelerated moves to get power generating companies in Nigeria to set aside 5 percent of their revenues for the development of their host communities.
The bill which passed for second reading during plenary seeks to compel Power Generating Companies to be socially and developmentally responsible, just as it was recently passed in the Petroleum Industry Bill, PIB.
The Bill entitled: “An Act to Amend the Electric Power Sector Reforms Act, to Provide for the Reservation of 5 Percent of all Revenue Accruing from Power Generating Companies in Nigeria for the Development of the Host Communities”, is sponsored by Rep. Babajimi Benson(APC-Lagos).
Leading the debate on the general principles of the bill, the sponsor, Hon. Babajimj Benson, said: “This bill seeks to amend the Principal Act as follows: Create a new Part V titled “Development Of Host Communities”.
It also states Deleting Part V to XII and renumbering them as Part V to XIII, and
Create a Section 77 under the new Part V.
Section 77 of the Act will highlight
“The adverse effects on the environment, human and aquatic lives on the communities hosting the power generating stations all over the country, particularly thermal pollution from the power generating stations are, hereby, recognised under this Act.
“Without prejudice to any existing right or rights that may be accruing to host communities under this Act or any other enactment, five per cent of the revenue accruing from power generated by the various power generating companies in Nigeria shall be set aside for the development of the respective host communities.
“The revenue referred to in Subsection 2 of this section shall be received, managed and administered by a trustee to be appointed by the GENCOs and representative of the host communities, upon agreement between the host communities and GENCOs on one part and the trustee on the other part.”
“The purpose of this amendment is to lawfully provide for the development of communities hosting power generating companies across the country. Hon. Colleagues, when passed, this 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. As stated above, host communities of all generating companies (GENCOs) shall be entitled to 5% of the firms’ previous year’s actual operating expenditure”, he said.
He noted that power generation, transmission, distribution and usage is known to cause huge harmful environmental and health challenges for host communities. In fact, it is almost impossible to produce, transmit and consume power without significant environmental impact. The electricity sector is unique among industrial sectors in its very large contribution to emissions associated with nearly all climatic and health issues.
He argued further that “power plants also require access roads, railroads and pipelines for fuel delivery as well as electricity transmission lines and cooling water supplies which could lead to soil erosion, deforestation, and water pollution from their construction work. This destabilizes the livelihood of the communities hosting them and also lead to water and soil contamination from waste and byproducts.
“Furthermore, the electricity sector is known to have significant impact on water habitat and species. Power generation leads to the destruction of aquatic life and consequently the disruption of sources of livelihood for host communities, especially the fishing communities. In particular, hydro dams, which is a major source of our power generation in Nigeria, and transmission lines have significant effects on water and biodiversity.
“Hydro power generation causes significant dislocation in the lives of people where the reservoirs are installed and often lead to flooding, and disruption of aquatic ecosystems. Water diversion or impoundment also affects people as well as plants and wildlife that depend on their access in certain locations. Changes can also impact water quality and change land uses. The host communities are even more at catastrophic risk when the dam wall fails”, he said.
He said power generation, especially through fossil fuels, biomass and municipal and industrial waste, is known to lead to the emission of the following substances:Carbon dioxide (CO2) – a greenhouse gas, which contributes to the greenhouse effect.
Sulfur dioxide (SO2) – causes acid rain, which is harmful to plants and animals that live in water. Nitrogen oxides (NOx) – contribute to the degradation of ground-level ozone. Particulate matter (PM) – causes hazy conditions in cites and scenic areas.
“As for human health, power generation causes serious health challenges for people living in their host communities. For instance, SO2 worsens respiratory illnesses and heart diseases, particularly in children and the elderly while Particulate Matter contributes to asthma and chronic bronchitis, most especially in children and old persons too. It also causes emphysema and lung cancer. Finally, NOx is believed to irritate and damage the lungs. The effect of carbon monoxide on human health is also common knowledge, while heavy metals such as mercury remain hazardous to human and animal health.
“All these and several other devastating effects of power generation on their host communities make it imperative that a particular amount of money is lawfully assigned for developmental projects there. What currently entails is merely corporate social responsibility (CSR) which is solely at the discretion of the GENCOs. This amendment will compel them to earmark a percentage of their revenue specifically for community development in their settler communities.
Meanwhile, House of Representatives has stressed the need to seek alternative sources of energy as the world is shifting from fossil fuel to cleaner, renewable energy.
The House also called for the formulation of a national policy on energy, which drives the power and petroleum sectors.
This was made known in Abuja on Wednesday at a public hearing organised by the House Committee on Science and Technology on three bills seeking to amend the Energy Commission of Nigeria Act and create a National Renewable Energy Development Agency.
The legislations are titled, ‘A Bill for an Act to Amend Energy Commission of Nigeria Act (Cap E10, Laws of the Federation of Nigeria, 2004) to Strengthen and to Make it the National Focal Point for New and Renewable Energy, Energy Efficiency and Conservation and Establish the Renewable Energy, Energy Efficiency and Conservation Fund (REECF) for Related Matters.’
‘A Bill for an Act to Amend the Energy Commission of Nigeria Act, Cap E10 Lfn, 2004 to Make it Compulsory for the Federal Government Through the Commission to Harness, Explore and Utilise Other Sources of Energy Other Than the Hydro and Gas Energy Sources in Nigeria and for Related Matters.’
‘A Bill for an Act to Establish the National Renewable Energy Development Agency (Establishment) Bill, 2020.’
Speaker of the House, Femi Gbajabiamila, while declaring the hearing open, noted that the bills, individually and collectively, seek to change the national approach to energy generation with the specific intent of ensuring that we embrace renewable energy options as a matter of national policy.
Gbajabiamila, who was represented by the Deputy Majority Leader, Peter Akpatason, said, “If we succeed in our present objectives, we have an opportunity to improve energy generation in our country whilst at the same time growing the economy in ways that will provide jobs and create economic opportunities for our citizens.
“However, our ability to do any of these depends on how well we can collaborate, first to ensure that the Bills that emerge from this process are well thought out, effectively written and capable of meeting the intended objectives. It also depends on our ability to ensure that the mandates of this Bill are implemented effectively by those to whom we will assign different responsibilities in the final legislation.”
Chairman of the House Committee on Science and Technology, Hon. Beni Lar, in her welcome address, also noted that the bills independently and collectively recognise the urgent shift in global energy need, and in different ways seek to proffer solutions to prioritising cleaner renewable energy sources.
Lar recalled that “In 2015, the United Nation, of which Nigeria is a signatory, adopted 17 goals themed ‘Sustainable Development Goals,’ one of which is Affordable Clean Energy. Following the adoption of SDGs, the global energy focus has shifted from carbon fuels to cleaner renewable sources and the implications are far reaching.”
“Pertinent is to note that in the near future, carbon fuel will not be attractive as it has been. On the brighter side, Nigeria is abundantly blessed with other cleaner renewable energy sources. May I unequivocally state that the potential of renewable energy is enormous and capable of huge employment generation among our teeming youths, foreign exchange earnings, boosting economic growth and diversification, which is a major thrust of this administration, etc., when properly harnessed and managed”, she said.
She warned that Nigeria might be stranded in about 30 years as the country is heavily dependent on fossil fuel for energy and revenue.
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