By Jimoh Ahmed
Ondo State has taken a major step towards transforming its electricity sector, following Governor Lucky Orimisan Aiyedatiwa’s assent to the Ondo State Electric Power Sector (Amendment) Law, 2026.
The new legislation is expected to strengthen electricity regulation, attract private-sector investment and create the foundation for increased power generation and distribution across the state.
The law, passed by the Ondo State House of Assembly, amends the 2020 Ondo State Electric Power Sector Law and brings the state’s electricity framework into greater alignment with Nigeria’s Electricity Act, 2023.
One of its most significant provisions is the establishment of the State Electricity Regulatory Commission (SERC) as an independent regulatory body responsible for overseeing electricity activities and standards in Ondo State.
The commission will regulate tariffs, open access, franchises, third-party investments, mini-grids and renewable energy development. It will also have powers to issue licences and permits for electricity generation, transmission and distribution facilities.
The legislation further provides for the establishment of the State Independent System Operator (SISO) and State Market Operator (SMO) to support the effective operation and development of the state’s electricity market.
Stronger Protection for Consumers and Investors
A major feature of the new law is compulsory metering for both grid-connected and off-grid electricity consumers.
Electricity providers will be required to provide appropriate metering facilities, while consumers will maintain direct service and payment relationships with their electricity providers.
The law also provides legal protection for electricity infrastructure financed by communities, associations and private individuals. Transformers, distribution lines and other facilities connected to the public distribution network are to be protected from arbitrary interference.
In a further move to discourage obstruction of electricity expansion, the law creates the offence of “Electricity Infrastructure Expansion Sabotage.”
A first conviction attracts a ₦2 million fine, in addition to ₦25,000 for every day that refusal to allow certified infrastructure to be connected to the grid continues after written notice from the regulatory authority.
The legislation also establishes the Equipment Standards and Competence Certification Agency (ESCCA) to inspect, test and certify electrical equipment and installations.
The agency will also be responsible for licensing and accrediting electrical installers, technicians, contractors and operators, potentially helping to improve safety and professional standards within the sector.
Ondo Power Company Gets Wider Mandate
The new law expands the role of the Ondo State Power Company, giving it greater authority to participate in electricity generation, transmission and distribution.
Its mandate includes investments in mini-grids, independent distribution networks, renewable energy, future energy technologies and small hydro projects.
The framework is also designed to provide investors with greater certainty, including provisions that could enable the state government to grant specified exclusivity rights to investors developing electricity generation, transmission, distribution and related fuel-supply infrastructure.
Electricity investments made by the state government, its agencies, communities, individuals and other recognised stakeholders will also be treated as “State Protected Investments.”
This places an obligation on the state and its agents to protect such investments.
Government Targets Industrial Growth
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 drive to establish a modern, sustainable and investment-driven electricity sector.
Alabi said the law provides the legal foundation for Ondo State to take advantage of the opportunities created by the decentralisation of Nigeria’s electricity market.
According to him, the legislation is expected to encourage private investment, strengthen regulation, improve metering, expand electricity infrastructure and promote renewable and alternative energy sources.
Governor Aiyedatiwa also reaffirmed his administration’s commitment to using electricity as a catalyst for industrialisation, economic development and an improved quality of life for residents.
With the new legal framework now in place, Ondo State is positioning its electricity sector for increased private-sector participation, expanded infrastructure and potentially more reliable electricity supply.
The success of the new law, however, will ultimately depend on effective implementation, transparent regulation, investor confidence and sustained protection of electricity infrastructure across the state.
The development marks a significant new chapter in Ondo State’s electricity story, with the government seeking to turn power from a persistent challenge into an engine of economic growth.
Source: Office of the Chief Press Secretary to the Governor of Ondo State, August 13, 2026.