Governor Lucky Orimisan Aiyedatiwa has signed into law the Ondo State Electric Power Sector (Amendment) Law, 2026, a landmark legislation aimed at transforming the state’s electricity sector and attracting private investment.
The new law, which amends the Ondo State Electric Power Sector Law, 2020, aligns the state’s electricity framework with recent constitutional reforms and the provisions of Nigeria’s Electricity Act, 2023.
A key feature of the legislation is the establishment of the State Electricity Regulatory Commission (SERC), an independent body tasked with regulating electricity generation, transmission and distribution activities within Ondo State.
The Commission will oversee tariff regulation, open access, franchises, third-party investments, mini-grids and renewable energy development. It will also be responsible for issuing licences and permits for electricity-related operations across the state.
The law further creates the State Independent System Operator (SISO) and the State Market Operator (SMO) to facilitate efficient management and development of the state’s electricity market.
In a move aimed at improving accountability and service delivery, the legislation makes metering compulsory in both grid-connected and off-grid areas. Electricity providers will be required to supply appropriate meters, while consumers will maintain direct service and payment relationships with their providers.
The amended law also provides legal protection for electricity infrastructure funded by communities, associations and private individuals. Facilities such as transformers and distribution lines connected to the public network will be safeguarded against unlawful interference.
To discourage obstruction of power projects, the law introduces the offence of Electricity Infrastructure Expansion Sabotage. Offenders risk a fine of ₦2 million upon conviction, in addition to a daily penalty of ₦25,000 for continued non-compliance after official notice from the regulatory authority.
Another major provision is the establishment of the Equipment Standards and Competence Certification Agency (ESCCA), which will inspect, test and certify electrical equipment and installations. The agency will also license and accredit electrical technicians, installers, contractors and operators.
The legislation strengthens the role of the Ondo State Power Company as the state’s commercial vehicle for investments in electricity generation, transmission and distribution. The company is empowered to invest in mini-grids, renewable energy projects, independent distribution networks, small hydro projects and emerging energy technologies.
The law is also expected to boost investor confidence by allowing the state government to grant specified exclusivity rights for electricity generation, transmission, distribution and related fuel-supply infrastructure projects.
Additionally, electricity investments made by the state government, communities, individuals and other recognised stakeholders have been designated as State Protected Investments, placing a responsibility on government institutions to safeguard such assets.
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 drive to build a modern, sustainable and investment-friendly power sector.
According to him, the legislation provides the legal foundation for Ondo State to fully leverage opportunities arising from the decentralisation of Nigeria’s electricity market, while encouraging private-sector participation, strengthening regulation, protecting investments and expanding electricity infrastructure.
Governor Aiyedatiwa reaffirmed his administration’s commitment to using the power sector as a catalyst for industrial growth, economic development and improved living standards for residents.
The new legal framework is expected to accelerate electricity generation and distribution projects, attract fresh investments and support the emergence of a more reliable and sustainable electricity market across Ondo State.