Governor Lucky Orimisan Aiyedatiwa has signed a new law expanding Ondo State’s regulatory control over electricity generation, transmission, and distribution, the biggest step yet since the state took over its power market from the federal regulator nearly two years ago.
The Ondo State Electric Power Sector (Amendment) Law, 2026, updates the original 2020 law and builds directly on the framework Ondo adopted in 2024, when it became one of four states alongside Enugu, Ekiti and Imo to assume full regulatory control of its electricity market following constitutional amendments and the 2023 Electricity Act.
The earlier transition led to the creation of the Ondo State Electricity Regulatory Bureau, which issued an interim licence to BEDC Electricity Ondo, the local subsidiary of Benin Electricity Distribution Plc.
The newly signed law goes further. It formally establishes a State Electricity Regulatory Commission with authority over tariffs, licensing, private investment approvals, mini-grid development, and renewable energy activity, effectively consolidating and strengthening the regulatory architecture the state began building in 2024.
Alongside it, the law creates a State Independent System Operator and a State Market Operator, institutions designed to coordinate grid operations and foster a more competitive electricity marketplace within Ondo.
Among its most consumer-facing provisions, the law makes electricity metering compulsory for all users and introduces legal protections for infrastructure funded by communities or private investors, a measure paired with newly defined penalties for vandalism or sabotage of power facilities, a persistent problem for distribution networks across Nigeria.
The legislation also sets up an Equipment Standards and Competence Certification Agency, tasked with certifying electrical equipment and vetting the qualifications of professionals working in the sector, and it strengthens the mandate of the Ondo State Power Company.
Announcing the governor’s assent on its official X account on Thursday, the state government framed the law as central to its industrialisation strategy, saying it would “attract private investment, expand electricity access, promote renewable energy” and use dependable power supply to drive broader economic development.
Officials argued that dedicated regulatory and market institutions would bring more structure to a sector long characterized by unreliable supply, while giving investors greater confidence to commit capital.
The move comes weeks after Aiyedatiwa acknowledged publicly that Ondo has not yet begun generating its own electricity, even though regulatory oversight was transferred to the state in 2024.
Speaking at an event marking the state’s 50th anniversary in February, the governor said his administration was still focused on strengthening regulation and improving distribution in partnership with existing distribution companies, rather than independent generation a distinction the new law appears designed to address by creating clearer legal and institutional conditions for future generation and mini-grid projects.
Whether the expanded framework translates into tangible improvements in supply reliability will likely depend on how quickly the new Commission, System Operator and Market Operator become operational, and on the pace at which private investors respond to the strengthened legal protections now on offer.
WHAT YOU SHOULD KNOW
Ondo State has taken a major legislative step to fully own and regulate its electricity market, creating dedicated institutions (a Regulatory Commission, System Operator, and Market Operator) to oversee tariffs, licensing, and competition, while making metering compulsory and criminalizing infrastructure sabotage to protect investments.
It builds on the state’s 2024 takeover of regulatory oversight from the federal government, signaling Ondo’s intent to attract private capital and expand power access.
However, as Aiyedatiwa himself admitted only months ago, the state still isn’t generating its own electricity so this law lays the legal groundwork for reform, but real impact on power reliability will depend on how fast these new institutions become functional and how investors respond.
