Ondo State Governor, Lucky Orimisan Aiyedatiwa, on Thursday, August 13, 2026, in Ondo State, assented to the Ondo State Electric Power Sector (Amendment) Law, 2026, introducing a strengthened legal and regulatory framework for electricity generation, transmission and distribution across the state.

The legislation establishes the State Electricity Regulatory Commission, giving the state a dedicated institution to oversee tariffs, licensing, investments, mini-grids, renewable energy and other activities within the electricity market.

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It also provides for a State Independent System Operator and a State Market Operator, institutions intended to support a more organised and competitive electricity market.

Among the law’s notable provisions is compulsory metering, alongside measures designed to protect electricity infrastructure funded by communities and private investors.

The legislation also introduces penalties for the sabotage of electricity facilities, an issue that has long posed challenges to infrastructure protection and reliable power supply across Nigeria.

Another significant provision establishes the Equipment Standards and Competence Certification Agency.

The agency will be responsible for regulating electrical equipment and ensuring that professionals working in the sector meet prescribed standards.

The law further strengthens the Ondo State Power Company and provides greater regulatory certainty for investors involved in electricity generation, distribution, renewable energy and related infrastructure.

The Ondo State Government said the new framework was designed to “attract private investment, expand electricity access, promote renewable energy” and use dependable electricity to support industrialisation and economic development.

The government’s position comes as Nigeria continues its transition towards a more decentralised electricity market.

The Electricity Act 2023 empowered states to establish and regulate their own intrastate electricity markets, while the Nigerian Electricity Regulatory Commission retains responsibility for national grid, inter-state and other federally regulated electricity activities.

Ondo is not entering that transition from scratch.

NERC says the state formally transitioned to regulating its own electricity market on October 23, 2024.

By May 2026, NERC had reported that 15 states had completed the transition, with further states subsequently joining the framework.

NERC’s July 2026 update said 16 states had fully transitioned to state electricity regulation, highlighting the growing role of subnational governments in shaping Nigeria’s power markets.

The development gives the new Ondo legislation added significance.

Rather than simply creating another administrative framework, the law comes as the state seeks to build institutions capable of regulating electricity activity closer to consumers and investors.

For households and businesses, however, the ultimate test will be whether the new framework translates into better service, wider access, effective metering and a more dependable electricity supply.

The government’s emphasis on investor protection also reflects the substantial capital required to develop generation, distribution, mini-grid and renewable-energy infrastructure.

Regulatory clarity can help reduce uncertainty for companies considering projects in the state, although actual investment will depend on market conditions, tariffs, infrastructure and the effectiveness of the new institutions.

The law’s provisions on equipment standards and professional competence could also have a practical impact beyond regulation.

Properly certified equipment and qualified personnel are central to electrical safety, system reliability and the long-term performance of power infrastructure.

Aiyedatiwa’s assent therefore marks an important legislative step in Ondo’s attempt to shape its own electricity market.

The more consequential phase will now be implementation, as the institutions created by the law begin translating its provisions into licences, standards, market rules and protections for consumers and investors.

If effectively implemented, the new Ondo power sector law could provide a more structured platform for private investment, renewable-energy expansion and improved electricity access.