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ONDO BEGINS REVIEW OF ELECTRICITY LAW TO STRENGTHEN POWER SECTOR
The Ondo State Government has commenced a comprehensive review of the Ondo State Electric Power Sector Law 2020, as part of ongoing efforts to strengthen governance, improve regulatory efficiency, and accelerate electricity development across the state.
The review session was held during a public hearing in Akure, bringing together officials from the Ondo State Ministry of Energy and Mineral Resources, members of the Ondo State House of Assembly, and other key stakeholders in the state’s electricity sector.
Declaring the hearing open at the Assembly Complex, the Speaker of the House, Rt. Hon. Olamide Oladiji, explained that the exercise aligns with the statutory responsibility of the Ondo State House of Assembly to ensure that the intent of the proposed amendment is fully realized.
He noted that the bill would strengthen infrastructure sustainability through expanded commercial activities while also enhancing security through improved street lighting across the state.
In his remarks, the Commissioner for Energy and Mineral Resources, Engr. (Dr.) Johnson Alabi, stated that the electricity sector began experiencing significant transformation following the Electricity Act signed by the President of Nigeria in 2023, which decentralized the electricity market and empowered states to play a larger role in electricity regulation and development.
According to a statement signed by the Information Officer in the ministry, Debbie Funmilayo, the commissioner said the review is necessary to ensure that Ondo State’s electricity laws align with current national reforms and evolving industry realities.
Key Areas of the Proposed Amendments:
The proposed amendments are aimed at modernizing the state’s electricity framework in line with ongoing reforms in Nigeria’s power sector and the growing role of subnational governments in electricity regulation and market development.
Key provisions of the bill include:
1. Strengthening Governance and Institutional Structures:
The amendments formally establish the Ondo State Power Company Limited (OSPC) as the commercial arm responsible for implementing power projects and managing the state’s electricity assets.
The bill also reinforces the role of the Ondo State Electricity Regulatory Bureau (OSERB) as the independent regulator responsible for licensing, market oversight, technical regulation, and consumer protection within the state’s electricity market.
Under the proposed framework, the bureau will operate through specialized directorates handling:
Regulatory compliance
Technical standards
Licensing
Electricity market monitoring
A new Equipment Standards and Competence Certification Department will also be created to enforce strict technical and safety standards in electricity infrastructure and operations.
2. Stronger Regulatory Enforcement:
The amendments introduce stricter regulatory enforcement measures, including sanctions and penalties for violations such as: Electricity infrastructure sabotage, refusal to connect eligible consumers and non-compliance with regulatory standards.
3. Encouraging Private Sector Participation:
The bill includes financial and legal provisions designed to protect state investments in electricity infrastructure while encouraging private sector participation. These provisions include:
Clearer tariff guidelines, Open access to electricity infrastructure, Regulation of third-party investments in generation, transmission, and distribution.
4. Accelerated Infrastructure development:
To support faster electricity infrastructure development, the proposed law will require regulatory approval before installing new electricity facilities and mandate advance notice for infrastructure projects in areas already connected to the national grid.
5. Consumer Protection:
The amended framework emphasizes consumer protection through the promotion of universal electricity metering across the state.
Additionally, the state government will be empowered to grant exclusive electricity service rights to qualified investors in specific areas where such arrangements would improve electricity supply and support infrastructure expansion.
Stakeholders at the hearing described the review as a critical step toward positioning Ondo State as a leading subnational electricity market capable of attracting investments and delivering reliable power supply to homes, businesses, and industries.
The amended law will be finalized and subsequently presented to the Ondo State House of Assembly for legislative consideration and passage.
Those present at the hearing included:
Permanent Secretary, Ministry of Energy and Mineral Resources, Alh. Olabode Yusuf; State Coordinator, Ondo State Electricity Regulatory Bureau, Engr. Stephen Bolawole; General Manager, Ondo State Electricity Board, Engr. Akindolani Ogunmakinwa; Acting Managing Director, Ondo State Power Company, Engr. Olumayowa Ajimobi; Administrative Secretary, Ondo State Rural Electrification Agency, Mr. Samson Adejube; Pioneer Chairman, Ondo State Electricity Board, Engr. Paul Oguntimehin; Chairman, Ondo State Electricity Transition Committee, Engr. Olatunji Light Ariyomo, represented by Mrs. Iyabo Adefemi and Other industry stakeholders.
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