Ondo Opens Energy Market To Investors As Gov Aiyedatiwa Signs Power Bill
The Governor of Ondo State, His Excellency, Hon. Lucky Orimisan Aiyedatiwa, has assented to the Ondo State Electric Power Sector (Amendment) Law, 2026, strengthening the legal and institutional framework for electricity generation, transmission and distribution across the State.
The new law, which was passed by the Ondo State House of Assembly, amends the Ondo State Electric Power Sector Law, 2020, and brings the State’s electricity framework in line with the constitutional and statutory developments in Nigeria’s electricity sector, particularly the Electricity Act, 2023.
A major highlight of the amended law is the establishment of the State Electricity Regulatory Commission (SERC) as an independent regulatory body responsible for overseeing electricity activities and standards across Ondo State.
The Commission will regulate tariffs, open access, franchises, third-party investments, mini-grids, renewable energy development and other aspects of the State’s electricity market. It will also issue licences and permits for electricity generation, transmission and distribution facilities.
The law further provides for the establishment of the State Independent System Operator (SISO) and State Market Operator (SMO) to facilitate the effective operation and development of the State electricity market.
Another significant provision is the requirement for compulsory metering in both grid-connected and off-grid areas. Electricity sellers are required to provide appropriate metering devices, while consumers will have direct service and payment relationships with their respective electricity providers.
The amended law also provides strong protection for electricity infrastructure financed by communities, associations and private individuals. Transformers, distribution lines and other facilities connected to the public distribution network will enjoy legal protection against arbitrary interference.
It creates the offence of “Electricity Infrastructure Expansion Sabotage” for anyone who deliberately prevents certified electricity infrastructure from being connected to the grid. A first conviction attracts a ₦2 million fine, in addition to ₦25,000 for every day the refusal continues after written notice from the regulatory authority.
The law also establishes the Equipment Standards and Competence Certification Agency (ESCCA), which will be responsible for inspecting, testing and certifying electrical equipment and installations, as well as licensing and accrediting electrical installers, technicians, contractors and operators.
In addition, the legislation strengthens the role of the Ondo State Power Company as the commercial arm of the State in the power sector. The company is empowered to undertake investments in electricity generation, transmission and distribution, including mini-grids, independent distribution networks, renewable energy, future energy technologies and small hydro projects.
The new framework is expected to provide greater confidence and certainty for investors, with provisions enabling the State Government to grant specified exclusivity rights to investors for the development of electricity generation, transmission, distribution and related fuel-supply infrastructure.
The law also designates electricity investments made by the State Government, its agencies, communities, individuals and other recognised stakeholders as “State Protected Investments,” thereby placing an obligation on the State and its agents to protect such investments.
Speaking on the development, the Commissioner for Energy and Mineral Resources, Engr. Johnson Jaiyeola Alabi, described the Governor’s assent as a major milestone in the State Government’s efforts to build a modern, sustainable and investment-driven electricity sector.
According to him, the law provides the legal foundation for Ondo State to take full advantage of the opportunities created by the decentralisation of Nigeria’s electricity market.
He said the legislation would encourage private-sector participation, strengthen regulation, protect investments, improve metering, expand electricity infrastructure and promote renewable and alternative energy sources across the State.
The Governor also reaffirmed his administration’s commitment to using the electricity sector as a catalyst for industrialisation, economic development and improved quality of life for the people of Ondo State.
The new law is expected to create an enabling environment for increased electricity generation and distribution, attract new investments and support the development of a more reliable and sustainable electricity market across the State.
