The Ondo State Government has declared that the Nigerian Electricity Regulatory Commission (NERC) no longer has authority over electricity assets within the state, insisting that full regulatory control now resides with the Ondo State Electricity Regulatory Bureau (OSERB). The Commissioner for Energy and Mineral Resources, Johnson Alabi, made this known……
The Ondo State Government has declared that the Nigerian Electricity Regulatory Commission (NERC) no longer has authority over electricity assets within the state, insisting that full regulatory control now resides with the Ondo State Electricity Regulatory Bureau (OSERB).
The Commissioner for Energy and Mineral Resources, Johnson Alabi, made this known while briefing journalists after a high-level stakeholders’ meeting in Akure.
In a statement issued by the Ministry’s Information Officer, Debbie Funmilayo, the Commissioner disclosed that OSERB has formally notified NERC of its approval of a leasing agreement between the Ondo State Power Company (OSPC) and the Niger Delta Power Holding Company (NDPHC) for the use of key distribution infrastructure in the state.
The infrastructure includes the 33kV distribution line from Omotosho to Rubber Estate and a 30-kilometre 33kV line extending to Fortune University, Igbotako.
Alabi explained that following the formal transfer of the assets from NDPHC to the Ondo State Government, regulatory authority over the facilities now lies entirely with OSERB, in line with the Electricity Act, 2023, and the Ondo State Electric Power Sector Law, 2020.
He described any attempt by NERC to issue directives or reassign control over the assets as “ultra vires, legally untenable, and an abuse of regulatory authority.”
According to him, the assets now form part of the state’s Regulatory Asset Base (RAB), placing them under OSERB’s jurisdiction for tariff regulation, utilisation, and operational oversight.
“Once an asset is domiciled within a state electricity market and recognised for regulatory purposes, its governance must align with the authority responsible for that market,” he said.
The Commissioner warned that federal interference could trigger regulatory conflicts, distort tariffs, discourage investment, and weaken accountability in electricity service delivery.
He further clarified that OSERB has approved the transfer and use of both the 54-kilometre Omotosho distribution line and the 30-kilometre Fortune University feeder line by the Ondo State Power Company.
Alabi stressed that NERC no longer has jurisdiction over distribution assets that have been fully transferred into the Ondo electricity market, cautioning against any attempt to assign such infrastructure to other operators, including BEDC Electricity Ondo Limited.
Citing provisions of the Electricity Act, 2023, he noted that states now have the power to regulate electricity within their territories and that asset transfers or leases require the consent of the relevant state regulator.
He added that OSERB assumed full regulatory oversight of BEDC operations in Ondo State in October 2024, in line with ongoing reforms decentralising the power sector.
Reaffirming the legal basis of the state’s position, Alabi said electricity regulation falls under the concurrent legislative list, allowing both federal and state governments to operate within defined boundaries.
He assured residents of the state government’s commitment to consumer protection, improved electricity supply, and a stable investment climate.
OSERB, however, warned that any action taken outside its approval would be treated as a regulatory violation and sanctioned accordingly.