Effective October 22, 2024, Ondo State has officially assumed oversight of its electricity market, marking a historic step toward local energy governance as the Nigerian Electricity Regulatory Commission (NERC) cedes control. This transfer aligns with NERC’s directive issued on April 22, 2024, after Ondo completed all regulatory prerequisites to independently manage its energy market.
This transition falls under the provisions of the Constitution’s amended sections on concurrent legislative authority and the 2023 Electricity Act, bringing Ondo’s power sector under the purview of the newly established Ondo State Electricity Regulatory Bureau (OSERB). In this capacity, OSERB is set to issue an interim license to BEDC Electricity Ondo Limited, a local subsidiary of Benin Electricity Distribution Plc, which is officially registered with the Corporate Affairs Commission (CAC).
Earlier in 2024, Governor Lucky Aiyedatiwa formed a high-powered committee led by Engr. Tunji Ariyomo to oversee the transition. This committee, which includes key state officials, has completed vital regulations for the state’s power market, alongside a draft amendment of the State Power Sector Law. Governor Aiyedatiwa emphasized that this transition positions Ondo State to implement more localized energy solutions, which are expected to enhance power delivery, reduce outages, and boost economic development.
In recent years, Ondo State has pioneered efforts to decentralize Nigeria’s electricity sector, beginning with the passage of its state power law in 2020, followed by the establishment of a state electricity regulatory commission in 2021. Now, with the ability to issue state-sanctioned electricity generation licenses, Ondo sets a precedent for other states looking to leverage constitutional provisions for energy autonomy.
OSERB now has the authority to regulate local power distribution operations, ensuring compliance with both state and federal guidelines while fostering a responsive and efficient electricity system tailored to Ondo’s unique needs.