Aiyedatiwa signs new power law, opens Ondo sector to investors
By Julius Alabi, Akure
Ondo State Governor, Lucky Orimisan Aiyedatiwa, has assented to the Ondo State Electric Power Sector (Amendment) Law, 2026, a major legislative step aimed at strengthening electricity regulation, attracting private investment and improving power supply across the state.
The new law, passed by the Ondo State House of Assembly, amends the Ondo State Electric Power Sector Law, 2020, and aligns the state’s electricity regulatory framework with recent constitutional and statutory developments, particularly the Electricity Act, 2023.
A key feature of the legislation is the establishment of the State Electricity Regulatory Commission (SERC) as an independent body to regulate electricity activities and enforce standards across Ondo State.
The commission is empowered to regulate tariffs, open access, franchises, third-party investments, mini-grids and renewable energy development, while also issuing licences and permits for electricity generation, transmission and distribution facilities.
The law further provides for the establishment of the State Independent System Operator and State Market Operator to facilitate the efficient operation and development of the state’s electricity market.
The development comes as the Aiyedatiwa administration seeks to position the power sector as a major driver of industrialisation, economic growth and improved living standards.
Under the new framework, compulsory metering will apply to both grid-connected and off-grid electricity consumers. Electricity sellers are required to provide appropriate meters, while consumers will maintain direct service and payment relationships with their electricity providers.
The legislation also seeks to protect electricity infrastructure financed by communities, associations and private individuals. Transformers, distribution lines and other facilities connected to the public distribution network will be accorded legal protection against arbitrary interference.
In a significant provision aimed at preventing obstruction of power projects, 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 first conviction attracts a N2 million fine, alongside an additional N25,000 for every day the refusal continues after written notice from the regulatory authority.
The legislation also establishes the Equipment Standards and Competence Certification Agency (ESCCA), saddling it with responsibility for inspecting, testing and certifying electrical equipment and installations.
The agency will equally license and accredit electrical installers, technicians, contractors and operators in a bid to improve professionalism, safety and technical standards within the sector.
The amended law strengthens the commercial role of the Ondo State Power Company, empowering it to invest in electricity generation, transmission and distribution, including mini-grids, independent distribution networks, renewable energy, small hydro projects and emerging energy technologies.
It also provides mechanisms for specified exclusivity rights to be granted to investors developing electricity generation, transmission, distribution and related fuel-supply infrastructure.
To further strengthen investor confidence, the law designates electricity investments made by the state government, its agencies, communities, individuals and other recognised stakeholders as “State Protected Investments”.
The designation places an obligation on the state and its agents to protect such investments and provides a stronger measure of certainty for businesses seeking to commit capital to the sector.
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 administration’s drive to establish a modern, sustainable and investment-driven electricity market.
Alabi said the legislation had provided Ondo State with the legal foundation to take full advantage of opportunities created by the decentralisation of Nigeria’s electricity market.
He said the new framework would encourage private-sector participation, strengthen regulation, protect investments, improve metering and accelerate the expansion of electricity infrastructure across the state.
The commissioner added that the law would also promote renewable and alternative energy sources, creating opportunities for investors while supporting communities and businesses that require reliable electricity.
The Governor also reaffirmed his administration’s commitment to using the electricity sector as a catalyst for industrialisation, economic development and improved quality of life for the people of Ondo State.
The new law is expected to create an enabling environment for increased electricity generation and distribution, attract new investments and support the development of a more reliable and sustainable electricity market across the State.o
