The Ondo State Government has declared that the Nigerian Electricity Regulatory Commission has no supervisory authority over electricity assets domiciled within the state, insisting that regulatory control rests solely with its own agency.
The Commissioner for Energy and Mineral Resources, Engr. Johnson Alabi, stated this on Friday while briefing journalists after a high-level meeting in Akure.
Alabi said the position followed the approval granted by the Ondo State Electricity Regulatory Bureau for a leasing arrangement between the Ondo State Power Company and the Niger Delta Power Holding Company.
The deal covers the use of key distribution infrastructure, including the 33kV line from Omotosho to Rubber Estate and a 30-kilometre feeder line extending to Fortune University, Igbotako.
The commissioner, who addressed the press alongside the Chairman of the State Transitioning Committee, Tunji Light-Ariyomo, and the OSERB State Coordinator, Stephen Bolawole, expressed concern over what he described as continued interference by the federal regulator in state electricity matters.
He maintained that following the formal transfer of the assets to the Ondo State Government, regulatory authority over them had shifted entirely to the state.
According to him, any attempt by NERC to issue directives or reassign control of the infrastructure is unlawful and undermines the emerging framework for electricity governance in Nigeria.
Alabi anchored the state’s position on the Regulatory Asset Base principle, explaining that electricity assets must be regulated within the jurisdiction where they are operationally controlled and utilised.
He warned that overlapping regulatory actions could create conflicts, distort tariff systems, and discourage investment in the power sector.
“Once an asset is operational within a state electricity market, it must be governed by the regulator responsible for that market,” he said.
The commissioner further clarified that OSERB had approved the transfer and utilisation of the Omotosho distribution network and the Fortune University feeder line, stressing that the federal regulator no longer has jurisdiction over such assets.
He added that any attempt to reallocate the infrastructure to another operator would contravene existing laws and disrupt power delivery in the state.
Citing provisions of the Electricity Act, 2023, Alabi noted that state governments now have clear constitutional backing to regulate electricity markets within their territories.
He also referenced an OSERB directive issued on April 23, 2026, affirming that the bureau had assumed full oversight of electricity operations in Ondo State since October 2024.
The commissioner emphasised that the relationship between federal and state regulators is not hierarchical but based on shared constitutional powers.
He assured residents that the state government would continue to protect consumers, ensure efficient service delivery, and promote investment in the electricity sector.
The bureau, however, warned that any action outside its approval framework would be treated as a regulatory breach and sanctioned accordingly.
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