Aiyedatiwa Creates New Electricity Commission as Ondo Pushes for Better Power Supply

Ondo State is taking a bigger step towards controlling its electricity future after Governor Lucky Aiyedatiwa signed a new power-sector law establishing an independent electricity regulator with responsibility for overseeing generation, transmission and distribution across the state.

The Ondo State Electric Power Sector (Amendment) Law, 2026 amends the state's 2020 electricity law and creates the State Electricity Regulatory Commission (SERC) as the central regulatory body for the emerging state electricity market. The legislation is designed to strengthen regulation, attract private investment and ultimately improve the reliability of electricity supplied to homes and businesses.

The development is significant because Nigeria's electricity sector is gradually moving away from a purely centralised model.

Under the Electricity Act 2023, states that meet the requirements can take greater responsibility for regulating electricity markets within their territories. The Nigerian Electricity Regulatory Commission said in May that regulatory oversight for intrastate electricity operations had been transferred to 15 states, including Ondo. Residents in those states are now expected to take electricity-related complaints—including disputes over billing, metering and service quality—to their respective state regulators.

For Ondo, the new law gives that transition a much stronger institutional foundation.

A regulator with wider powers

The new SERC will have responsibility for regulating tariffs, open access, franchises, third-party investments, mini-grids and renewable-energy development. It will also issue licences and permits for electricity generation, transmission and distribution facilities operating within the state's jurisdiction.

The legislation goes further by creating a State Independent System Operator (SISO) and a State Market Operator (SMO) to coordinate the operation and development of the state's electricity market.

That could gradually change how electricity is produced and distributed in Ondo.

Rather than relying exclusively on the national grid and the existing distribution structure, the state can develop a more diversified electricity market involving independent power producers, mini-grids, renewable-energy projects and other private-sector players.

And Ondo has already started moving in that direction.

Earlier this year, the state granted generation and distribution licences to Ore Power Limited and ASB Valiant Electricity Limited, with the government describing the move as part of its effort to establish an independent, investor-driven electricity market.

Metering becomes compulsory

One of the provisions that could have the most immediate impact on consumers is the new law's requirement for compulsory metering in both grid-connected and off-grid areas.

Electricity sellers will be required to provide appropriate meters, while consumers will have direct service and payment relationships with their electricity providers.

That is particularly relevant in a country where estimated billing has remained a major source of frustration for electricity consumers.

The reform could make it easier for customers to know exactly how much electricity they have consumed and how much they should pay, while also giving providers clearer information about demand.

Protecting investments and the infrastructure itself

The legislation also seeks to make investment in Ondo's electricity market more attractive.

Electricity infrastructure financed by communities, private individuals and associations will receive legal protection, while the law designates qualifying electricity investments as “State Protected Investments.” The government can also grant specified exclusivity rights to investors developing electricity generation, transmission, distribution and related fuel-supply infrastructure.

There is also a new offence known as “Electricity Infrastructure Expansion Sabotage.”

A person who deliberately prevents certified electricity infrastructure from being connected to the grid could face a ₦2 million fine, plus an additional ₦25,000 for each day the obstruction continues after notice from the regulator.

The move reflects another problem that has repeatedly undermined Nigeria's electricity system: infrastructure vandalism and disputes over the connection of new facilities.

Ondo wants more than regulation

The state's strategy is not limited to creating another regulatory agency.

The amended law strengthens the Ondo State Power Company as the commercial arm of the government in the electricity sector. The company can invest in generation, transmission and distribution, including mini-grids, independent distribution networks, renewable energy and small hydro projects.

The law also establishes an Equipment Standards and Competence Certification Agency (ESCCA) to inspect and certify electrical equipment and installations and to license electrical technicians, contractors and other professionals operating in the sector.

That could prove important as more private operators enter the market.

A growing electricity market requires not just generation capacity, but standards that ensure the equipment being installed is safe, compatible and properly maintained.

The bigger challenge: turning reform into electricity

The legislation gives Ondo more tools, but it does not automatically solve the state's power problem.

The state still has to attract serious investors, develop viable generation projects, improve distribution infrastructure and ensure that electricity providers can operate commercially while consumers receive reliable service at reasonable prices.

That challenge is particularly important because Ondo has previously acknowledged that it was yet to fully exploit its new powers to generate and distribute electricity independently.

In February, Aiyedatiwa said his administration was initially concentrating on strengthening regulation, improving distribution and working with existing electricity companies rather than immediately launching an independent generation system.

The new law potentially marks the next stage of that process.

It gives the state a clearer legal structure within which generation and distribution can expand while allowing private companies to participate more directly.

For FollowGlobalTrends, the importance of Aiyedatiwa's move goes beyond the creation of another government institution. Ondo is effectively attempting to build its own electricity market, with an independent regulator, market operator, licensing framework, compulsory metering and stronger protections for investors. If the framework works as intended, the payoff could extend well beyond better lighting in homes.

Reliable electricity could reduce the cost of doing business, support manufacturing and small enterprises, encourage investment and help the state develop industries around its energy resources. The real test, however, begins now.

Ondo has created the framework. What residents will ultimately want to see is the power.