By Seun Ibiyemi
The Ondo State Government has approved a leasing arrangement between the Ondo State Power Company (OSPC) and the Niger Delta Power Holding Company (NDPHC) for the utilisation of key electricity distribution infrastructure within the state, in a move that has reignited debate over regulatory authority in Nigeria’s evolving electricity market.
The approval, issued through the Ondo State Electricity Regulatory Bureau (OSERB), was formally communicated to the Nigerian Electricity Regulatory Commission (NERC), according to state officials.
The arrangement covers the 33kV distribution line from Omotosho to Rubber Estate and a 30-kilometre 33kV feeder line extending to Fortune University, Igbotako, both located in Ondo State.
Briefing journalists after a high-level strategic meeting, the Commissioner for Energy and Mineral Resources, Engr. (Dr.) Johnson Alabi, alongside the Chairman of the State Transitioning Committee, Engr. Tunji Light-Ariyomo, and OSERB Coordinator, Engr. Stephen Bolawole, said the state was concerned about what it described as continued regulatory interference by NERC in assets already transferred to the state.
Alabi stated that once the infrastructure was formally handed over by NDPHC to the state government, regulatory authority over such assets now rests solely with OSERB, in line with existing legal and constitutional provisions.
He warned that any attempt by NERC to issue directives or reassign control over the assets was “ultra vires, legally unsustainable, and an abuse of regulatory authority,” adding that such actions undermine the federal–state framework guiding Nigeria’s electricity sector.
The Commissioner anchored the state’s position on the Regulatory Asset Base (RAB) principle, explaining that electricity assets must be regulated by the authority within the jurisdiction where they are operationally controlled and utilised.
According to him, the Omotosho 33kV network and associated lines now form part of Ondo State’s regulatory asset base, and therefore fall exclusively under OSERB’s jurisdiction for regulation, leasing, and tariff decisions.
He cautioned that allowing federal oversight of assets already integrated into the state market could lead to regulatory duplication, tariff distortions, investment uncertainty, and weak accountability in service delivery.
“For the avoidance of doubt, OSERB has approved the transfer and utilisation of these assets. NERC has no residual jurisdiction over them,” Alabi stated.
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He also warned against any attempt to reassign the assets to other operators, including BEDC Electricity Ondo Limited, describing such moves as unlawful and counterproductive to efficient power delivery in the state.
Referencing the Electricity Act, 2023, and the Ondo State Electric Power Sector Law, 2020, Alabi maintained that electricity regulation is a concurrent responsibility between federal and state governments, with each operating within clearly defined jurisdictions.
He further cited provisions of the Act which, according to him, remove NERC’s regulatory authority once state-level transfers and oversight arrangements have been completed.
Reaffirming the state’s commitment, the Commissioner said Ondo State would continue to prioritise consumer protection, investment stability, and efficient electricity market operations under OSERB.
He added that any breach of the approved leasing arrangement or interference outside the state’s regulatory framework would attract sanctions under applicable laws.
