Aiyedatiwa Signs Ondo Electricity Law, Opens Power Sector to Private Investment
Ondo State Governor, Lucky Orimisan Aiyedatiwa, has signed the Ondo State Electric Power Sector (Amendment) Law, 2026, introducing a new regulatory framework aimed at attracting private investment, expanding electricity infrastructure and improving power supply across the state.
The new legislation, passed by the Ondo State House of Assembly, amends the Ondo State Electric Power Sector Law of 2020 and aligns the state’s electricity framework with Nigeria’s Electricity Act 2023 and other recent constitutional changes that expanded the role of states in the electricity market.
A major component of the law is the establishment of the State Electricity Regulatory Commission (SERC) as an independent regulator responsible for overseeing electricity activities and enforcing standards within Ondo State.
Under the new framework, the commission will regulate tariffs, open access, franchises and third-party investments while supervising mini-grids and renewable energy development. It will also issue licences and permits covering electricity generation, transmission and distribution facilities.
The legislation also establishes the State Independent System Operator (SISO) and State Market Operator (SMO), institutions expected to coordinate the operation and development of the emerging Ondo electricity market.
The reforms are expected to provide greater regulatory certainty for investors seeking opportunities in electricity generation and distribution, renewable energy, mini-grids and other power infrastructure projects.
Another significant provision of the law is compulsory electricity metering for consumers in both grid-connected and off-grid areas.
Electricity providers will be required to supply appropriate meters to their customers, establishing a direct service and payment relationship between consumers and electricity suppliers. The measure could also strengthen transparency in electricity billing and reduce disputes associated with estimated bills.
The law provides additional protection for electricity infrastructure financed by communities, associations and private individuals, including transformers and distribution lines connected to public distribution networks.
It also creates the offence of Electricity Infrastructure Expansion Sabotage to address deliberate obstruction of certified electricity infrastructure from being connected to the grid.
An offender faces a N2 million fine, with an additional N25,000 payable for every day the violation continues after notice from the regulator.
The legislation further establishes the Equipment Standards and Competence Certification Agency (ESCCA), which will inspect, test and certify electrical equipment and installations.
The agency will also regulate professional standards by licensing and accrediting electrical installers, technicians, contractors and other operators within the state’s electricity industry.
Another important element of the reform is the strengthening of the Ondo State Power Company as the commercial arm of the state government in the electricity sector.
The company will be able to participate in electricity generation, transmission and distribution as well as investments in mini-grids, renewable energy, independent distribution networks and small hydro projects.
The new framework also empowers the state to grant exclusivity rights to investors and provides legal protection for qualifying electricity investments undertaken by government, communities and private individuals.
Commissioner for Energy and Mineral Resources, Johnson Jaiyeola Alabi, described the governor’s assent as a major milestone in the state’s efforts to establish a modern, sustainable and investment-driven electricity industry.
Governor Aiyedatiwa said his administration intends to position reliable electricity as a catalyst for industrialisation, business expansion and economic development across Ondo State.
The new law could be particularly significant for businesses and industries that have historically struggled with unreliable electricity supply and the high cost of alternative power generation.
By creating a state-level electricity market and opening additional opportunities for private investors, mini-grid operators and renewable-energy developers, the government hopes to increase competition, attract capital and accelerate electricity infrastructure development.
The effectiveness of the reform, however, will ultimately depend on implementation, including the independence and capacity of the new regulator, investor response, enforcement of metering requirements and the ability to translate new investments into reliable electricity for households and businesses.
With the amended law now in force, Ondo State joins the growing push by Nigerian states to take greater responsibility for electricity regulation and investment following the decentralisation enabled by recent national power-sector reforms.
For the Aiyedatiwa administration, the legislation represents more than a regulatory change. Its bigger test will be whether the new framework can translate private investment and regulatory reforms into improved electricity supply, industrial growth, job creation and lower operating pressures for businesses across the state.
