Ondo State Governor Lucky Aiyedatiwa has signed the Ondo State Electric Power Sector (Amendment) Law 2026 into law, a move the state says will give it full control to regulate, generate and distribute electricity locally.
The bill, passed earlier by the Ondo State House of Assembly, updates the 2020 power sector law to align with the federal Electricity Act 2023 and Nigeria’s push to decentralize the power market.
What the new law sets up
- State Electricity Regulatory Commission (SERC): An independent body that will oversee tariffs, licensing, open access, franchises, mini-grids, and renewable energy projects in Ondo.
- State Independent System Operator (SISO) and State Market Operator (SMO): Two new entities tasked with running the day-to-day operations and trading in the state electricity market.
- Equipment Standards and Competence Certification Agency (ESCCA): Will test and certify equipment, and license electricians, contractors and other technical operators.
Key provisions for consumers and investors
Metering is now compulsory for both grid-connected and off-grid customers. Electricity providers must supply meters, and customers will deal directly with their provider for service and billing.
The law also protects infrastructure built by communities, associations and private individuals. Transformers, distribution lines and other assets tied to the public network cannot be tampered with arbitrarily.
A new offence called “electricity infrastructure expansion sabotage” was created. It targets anyone who deliberately blocks certified projects from connecting to the grid.
The Ondo State Power Company gets a stronger mandate as the state’s commercial vehicle in the sector. It can now invest directly in generation, transmission, distribution, mini-grids, independent networks, renewables, small hydro and other emerging energy technologies.
Investments made by the state government, agencies, communities and other recognized stakeholders are designated as “state protected investments,” meaning the government is legally bound to safeguard them.
Government’s take
Commissioner for Energy and Mineral Resources, Johnson Jaiyeola Alabi, said the assent marks a turning point for Ondo. He noted the law creates the legal backing needed to attract private capital, strengthen regulation, expand infrastructure, improve metering, and scale renewable and alternative energy across the state.
With the amendment, Ondo joins other states moving to take advantage of powers granted under the 2023 Electricity Act to run their own electricity markets.
