The Lagos State House of Assembly, last week announced the passage of two bills expected to provide legal framework for the Embedded Power Supply Project and the review of the Land Use Charge Law. Both laws are expected to be signed this week by the State Governor, Mr. Akinwunmi Ambode.
The power project is aimed at delivering an estimated 3,000 Megawatts to homes and industries, and it is expected to lift the economy of Lagos which is Nigeria’s industrial hub, while the revised Land Use Charge Law had been designed to improve the values of property in the State.
The Commissioner for Information and Strategy; Mr Kehinde Bamigbetan Speaking on the development said, the two strategic laws were part of Governor Ambode’s plan to make Lagos residents comfortable and boost the economy of the state.
He said: “The Embedded Power Supply programme will provide the enabling environment for the private sector to generate not less than 1000 megawatts every year in the first phase of three years by using gas to produce power and distributing the electricity to consumers.
“As enabler, the Lagos State Government will guarantee the off-take of the generated power.
“This new product is expected to expand the distribution network and increase metering capacity of the electricity distribution firms in Lagos State including Eko Distribution Company and Ikeja Electricity Distribution Company.”
Bamigbetan further stated that, the law has been made in a way that it will provide the needed framework for the government to support the firms in the collections of tariffs and enforcement that will ensure return on investment by participating companies and encourage more electricity companies to invest in the embedded power sector.
“A novel feature of the law is the introduction of provisions for the prosecution and sentencing of those who tap electricity illegally or use the power produced through the embedded power system without entering into contracts with the companies.
“Defined as power theft, industry watchers believe that this is the first law to provide penalties for a major cause of financial failures of electricity companies and with regular power supply in homes and industries, the Lagos State Government expects a giant leap in the production and growth of the economy,” He said.
The Land Use Charge Law is considered as the answer to the agitations of residents for a transparent process of determining rates. Under the revised law, Estate valuers who are authorised to assess and value tenements will ensure that the data are reliable and the indices are explicit.
The revised law also exempts tenements owned by non-profit organisations, religious bodies and public cemeteries and burial grounds.
