- Ondo State has launched a new electricity law to attract private investment and expand power supply.
- The law establishes state regulators and supports renewables, mini-grids and private power projects.
Ondo State has moved to strengthen its electricity market and attract private investment after Governor Lucky Aiyedatiwa signed the State Electric Power Sector (Amendment) Law, 2026.
The legislation updates the state’s 2020 electricity law and brings its regulatory framework in line with Nigeria’s Electricity Act 2023. It gives Ondo greater control over electricity activities within the state while creating new structures for investment and market development.
A key provision is the establishment of the State Electricity Regulatory Commission (SERC). The commission will regulate tariffs, licenses, open access, franchises, mini-grids and renewable energy projects. It will also oversee electricity generation, transmission and distribution within the state. The law also creates a State Independent System Operator and a State Market Operator to support the operation of Ondo’s electricity market.
Metering is another major focus. Electricity providers will be required to meter both grid-connected and off-grid customers. Consumers will maintain direct payment relationships with their electricity providers.
The legislation also introduces protections for privately and community-funded electricity infrastructure. Transformers, distribution lines and other facilities connected to the public network will receive legal protection from interference.
It further creates an offence known as Electricity Infrastructure Expansion Sabotage. Anyone convicted of deliberately preventing certified electricity infrastructure from being connected to the grid will face a ₦2 million fine. A further ₦25,000 daily penalty may apply if the obstruction continues after written notice.
The new framework also establishes the Equipment Standards and Competence Certification Agency (ESCCA). The agency will inspect and certify electrical equipment and installations. It will also license and accredit installers, technicians, contractors and other electricity-sector operators.
The law expands the mandate of the Ondo State Power Company, allowing it to invest across the electricity value chain. Its activities can include generation, transmission, distribution, mini-grids, independent distribution networks, renewable energy and small hydro projects.
For investors, the legislation provides another important incentive. The state government can grant specified exclusivity rights for projects involving electricity generation, transmission, distribution and related fuel infrastructure.
Electricity projects funded by the state, communities, individuals and other recognized investors will also be classified as State Protected Investments. The designation places an obligation on the state to protect such assets.
Commissioner for Energy and Mineral Resources Johnson Jaiyeola Alabi said the law would help Ondo take advantage of the decentralization of Nigeria’s electricity market.
He said the framework should improve regulatory certainty, attract private capital, expand electricity infrastructure and encourage renewable energy development.
The broader objective is to use electricity investment to support industrial activity and economic growth across the state. With the new regulatory structures now established, Ondo will need to translate the legislation into functioning institutions, bankable projects and additional power supply for consumers.