Ondo State Governor, Lucky Aiyedatiwa, has assented to the 2026 amendment to the state’s electricity law, paving the way for stronger regulation and increased private sector participation in the power industry.
The new legislation, known as the Ondo State Electric Power Sector (Amendment) Law, 2026, seeks to reposition the state’s electricity market and provide a clearer framework for generation, transmission and distribution.
The law, passed by the Ondo State House of Assembly, amends the 2020 electricity law and incorporates provisions arising from recent changes in Nigeria’s electricity regulatory framework, particularly the Electricity Act, 2023.
A key provision of the legislation is the establishment of the State Electricity Regulatory Commission, an independent body that will supervise electricity activities and enforce standards across the state.
The commission is empowered to regulate tariffs, licences, franchises, mini-grids, renewable energy projects, open access arrangements and third-party investments in the electricity market.
It will also issue permits and licences for electricity generation, transmission and distribution facilities, while separate institutions known as the State Independent System Operator and State Market Operator will oversee the effective operation of the state electricity market.
The law makes metering compulsory for electricity consumers in both grid-connected and off-grid locations, requiring providers to supply appropriate meters and maintain direct service and payment relationships with their customers.
It also provides legal protection for power infrastructure funded by communities, private individuals and associations, including transformers and distribution lines connected to the public electricity network.
Under the law, deliberately frustrating the connection of certified electricity infrastructure to the grid constitutes “Electricity Infrastructure Expansion Sabotage.” A first conviction attracts a N2m fine, as well as an additional N25,000 for each day the violation continues after written notice by the regulatory authority.
The legislation further establishes the Equipment Standards and Competence Certification Agency to inspect and certify electrical equipment and installations and regulate the accreditation and licensing of electrical installers, technicians, contractors and operators.
It also expands the investment mandate of the Ondo State Power Company, allowing it to participate in generation, transmission and distribution projects, including mini-grids, renewable energy, independent distribution networks, future energy technologies and small hydro schemes.
The law provides for investment protections and allows the state government to grant specified exclusivity rights to investors undertaking approved electricity and related fuel-supply projects.
Electricity investments by the state government, its agencies, communities, individuals and other recognised stakeholders are also designated as “State Protected Investments,” requiring the government and its agents to safeguard them.
Reacting to the development, the Commissioner for Energy and Mineral Resources, Johnson Alabi, described the governor’s assent as a major step towards transforming Ondo’s electricity sector.
Alabi said the legislation would enable the state to take advantage of opportunities created by the decentralisation of Nigeria’s electricity market while attracting more private capital into the sector.
He added that the new framework would strengthen regulation, improve metering, protect investments, expand electricity infrastructure and encourage renewable and alternative energy development.
Aiyedatiwa, according to a statement issued by his Chief Press Secretary, Ebenezer Adeniyan, also reaffirmed his administration’s determination to deploy the power sector as a driver of industrial growth, economic development and improved living standards in the state.
The new framework is expected to create greater certainty for investors and support efforts to increase electricity generation and distribution across Ondo State.
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