KEY POINTS

• Aiyedatiwa signed Ondo’s new electricity law.
• SERC will regulate the state’s power market.
• The law makes metering compulsory and protects power investments.

Ondo State has introduced a new legal framework aimed at transforming its electricity market, attracting private investment and expanding access to reliable power across the state.

Governor Lucky Aiyedatiwa has signed the Ondo State Electric Power Sector (Amendment) Law 2026 into law, strengthening the state’s authority to regulate electricity generation, transmission and distribution.

The legislation amends the 2020 electricity law and brings Ondo’s power sector framework in line with Nigeria’s Electricity Act 2023 and the ongoing decentralisation of the country’s electricity market.

A major provision of the law is the creation of the State Electricity Regulatory Commission (SERC) as an independent body responsible for regulating electricity activities across Ondo.

The commission will oversee tariffs, licensing, open access arrangements, franchises and third-party investments. It will also regulate mini-grids, renewable energy projects and other electricity generation, transmission and distribution activities.

The commission is expected to provide stronger oversight of the sector while creating clearer rules for businesses and investors seeking to operate within the state.

New market operators to improve electricity management

The law also provides for the establishment of the State Independent System Operator (SISO) and State Market Operator (SMO).

These institutions are expected to support the effective operation and development of Ondo’s electricity market, helping to coordinate electricity supply and improve the functioning of the state’s emerging power system.

The reforms are designed to give Ondo greater control over its electricity market while encouraging more investment in power infrastructure.

Another key provision is the mandatory installation of electricity meters in both grid-connected and off-grid areas.

Electricity providers will be required to supply appropriate metering equipment, while consumers will maintain direct service and payment relationships with their electricity providers.

The government is expected to use the measure to improve transparency in electricity billing and reduce disputes between consumers and service providers.

The legislation introduces protections for electricity infrastructure financed by communities, private individuals and associations.

Transformers, distribution lines and other facilities connected to the public distribution network will be protected from arbitrary interference.

The law also creates an offence known as “electricity infrastructure expansion sabotage”. Anyone who deliberately prevents certified electricity infrastructure from being connected to the grid could face sanctions under the new framework.

The legislation further classifies electricity investments made by the state government, its agencies, communities, individuals and other recognised stakeholders as “state protected investments”.

This means the state government and its agencies are expected to safeguard such investments and provide an environment that supports their continued operation.