Ondo State Governor, Lucky Orimisan Aiyedatiwa, has signed the Ondo State Electric Power Sector (Amendment) Law, 2026, into law, paving the way for greater private-sector participation and investment in the state’s electricity market.
The legislation, passed by the Ondo State House of Assembly, provides a new regulatory framework for electricity generation, transmission and distribution while aligning the state’s power sector with the provisions of the Electricity Act, 2023.
One of the major changes introduced by the law is the establishment of the State Electricity Regulatory Commission (SERC), an independent body that will oversee electricity activities and standards across the state.
SERC will regulate tariffs, licences, franchises, open access, mini-grids, renewable energy projects and third-party investments, among other activities.
The commission will also issue permits and licences for electricity generation, transmission and distribution facilities.
The law provides for the establishment of the State Independent System Operator (SISO) and State Market Operator (SMO) to support the effective functioning of the state’s electricity market.
It also makes metering compulsory for both grid-connected and off-grid consumers, directing electricity providers to supply appropriate meters to customers.
Another provision protects electricity infrastructure financed by communities, private individuals and associations, including transformers and distribution lines connected to the public network.
The law creates the offence of “Electricity Infrastructure Expansion Sabotage” for anyone who deliberately prevents certified electricity infrastructure from being connected to the grid.
A person convicted of the offence will face a ₦2 million fine, in addition to a ₦25,000 daily penalty for continued refusal after receiving written notice from the regulatory authority.
The legislation further establishes the Equipment Standards and Competence Certification Agency (ESCCA) to inspect and certify electrical equipment and installations and regulate the licensing and accreditation of electrical installers, technicians, contractors and operators.
The Ondo State Power Company has also been empowered to operate as the commercial arm of the state government in the electricity sector.
Under the law, the company can invest in electricity generation, transmission and distribution, including mini-grids, independent distribution networks, renewable energy, small hydro projects and emerging energy technologies.
The new legislation also allows the state government to grant specified exclusivity rights to investors involved in electricity generation, transmission, distribution and related fuel-supply infrastructure.
It further classifies electricity investments made by government, communities, individuals and other recognised stakeholders as “State Protected Investments”, requiring the state and its agencies to safeguard 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’s efforts to build an investment-driven electricity sector.
Alabi said the legislation would enable Ondo State to take advantage of the decentralisation of Nigeria’s electricity market while creating opportunities for private investors.
He said the law would strengthen regulation, improve metering, expand electricity infrastructure and encourage the development of renewable and alternative energy sources.
Aiyedatiwa said his administration would continue to position the electricity sector as a driver of industrialisation, economic growth and improved living standards for residents.
The state government expects the new legal framework to attract fresh investment, expand electricity infrastructure and support the development of a more reliable and sustainable power market in Ondo State.
