Ondo State Governor Lucky Aiyedatiwa has signed a new law aimed at strengthening the regulation and development of the state’s electricity market.
The Ondo State Electric Power Sector (Amendment) Law 2026, recently passed by the state House of Assembly, updates the state’s 2020 electricity law and brings its framework in line with Nigeria’s Electricity Act 2023.
The new legislation is expected to create a clearer regulatory structure for electricity generation, transmission and distribution while opening more opportunities for private investment.
New electricity regulator established
One of the major provisions of the law is the creation of the State Electricity Regulatory Commission (SERC) as an independent body responsible for regulating electricity activities across Ondo.
The commission will oversee areas including tariffs, open access, franchises, mini-grids, renewable energy and third-party investments.
It will also be responsible for issuing licences and permits for electricity generation, transmission and distribution facilities.
The law further establishes a State Independent System Operator (SISO) and State Market Operator (SMO) to support the effective running of the state’s electricity market.
Mandatory metering and stronger infrastructure protection
The amended law makes electricity metering compulsory in both grid-connected and off-grid areas.
Electricity providers will be required to supply appropriate meters, while consumers will have direct relationships with their respective providers for service and payment.
The legislation also protects electricity infrastructure financed by communities, private individuals and associations.
It creates an offence known as “electricity infrastructure expansion sabotage” for anyone who deliberately prevents certified electricity infrastructure from being connected to the grid.
Ondo targets investment and renewable energy
The law also establishes the Equipment Standards and Competence Certification Agency (ESCCA) to inspect and certify electrical equipment and installations.
The agency will also license and accredit electrical installers, technicians, contractors and other operators.
Meanwhile, the Ondo State Power Company has been given stronger commercial powers to invest in electricity generation, transmission and distribution, including mini-grids, renewable energy, small hydro projects and future energy technologies.
Electricity investments made by the state government, communities, individuals and other recognised stakeholders will also receive protection as “state protected investments.”
Ondo Commissioner for Energy and Mineral Resources, Johnson Jaiyeola Alabi, described the governor’s assent as a major step towards building a modern and investment-driven electricity sector.
He said the new law would encourage private-sector participation, improve regulation and metering, protect investments and expand electricity infrastructure across the state.
Source: Ondo State Government.
