How Ondo is Building a State-Independent Electricity Market — Commissioner

–Outlines Ondo’s Energy Revolution

In an interview with Olumide Akinrinlola, the Publisher and Editor-in-Chief of Starnews NG, Engr. Alabi Johnson, the Commissioner for Energy and Mineral Resources in Ondo State, shared insights into the strategic reforms being implemented in the energy sector under Governor Lucky Aiyedatiwa’s EASE Agenda. He highlighted the ministry’s commitment to transforming the power and mineral sectors while addressing the challenges faced by the state.

What are some of the reforms your ministry is embarking upon or has embarked upon?

The ministry has initiated and is implementing several strategic reforms aimed at transforming the power and mineral sectors in Ondo State. These include:

• Establishment and operationalisation of the Ondo State Electricity Regulatory Bureau (OSERB)
• Implementation of the O’Datiwa Mass Metering Scheme to eliminate estimated billing
• Creation and strengthening of the Ondo State Power Company (OSPC) as a state utility vehicle
• Development of a state electricity market framework in line with the Electricity Act 2023
• Unbundling and restructuring of electricity distribution within the state (ongoing)
• Facilitation of embedded and captive power generation projects (e.g., Ore Power Plant, AS Valiant)
• Electrification initiatives targeting underserved and rural communities (mini-grids across the state)
• Introduction of cost-reflective and service-based tariff structures (ongoing)
• Strengthening regulatory oversight over operators within the state
• Development of a mineral resources value chain framework to formalise mining activities

Has any of these reforms been implemented?

Yes, several of these reforms have moved beyond planning into active implementation:

• The Ondo State Electricity Regulatory Bureau (OSERB) has been established and is already issuing regulatory directives.
• The O’Datiwa Mass Metering Scheme is currently being deployed, with meters procured and installations ongoing.
• The Ondo State Power Company (OSPC) is operational and leading strategic projects within the state.
• The Ore Power Plant project is at an advanced stage and is expected to deliver power to the corridor in Ore.
• Regulatory engagement with distribution operators has commenced, particularly in enforcing compliance and protecting consumers.

Beyond press statements, what has your ministry achieved under Governor Lucky Aiyedatiwa’s EASE AGENDA?

Under the leadership of Governor Lucky Aiyedatiwa, the ministry has delivered tangible, measurable progress:

• Improved electricity access strategy: Transition from dependence on the national grid to a hybrid state-controlled electricity market.
• Metering rollout: Thousands of households and businesses are being metered, reducing exploitation through estimated billing.
• Power infrastructure development:
• Investor confidence: Attraction of private sector participation in power generation and distribution.
• Regulatory clarity: Establishment of a functional state regulator to provide certainty and protect both investors and consumers.
• Rural electrification planning: A structured approach to expanding electricity to underserved communities.
• Mineral sector structuring: Ongoing work to formalise artisanal mining and increase state revenue.

These are practical, on-ground interventions—not just policy declarations.

What are your challenges as you embark on these reforms?

Like any major structural reform, we face a number of challenges:

• Legacy issues in the power sector, including weak infrastructure and historical inefficiencies.
• Resistance from existing operators who are adjusting to a new regulatory and operational environment.
• Financing constraints, especially for large-scale infrastructure investments.
• Gas supply and pricing volatility, which affects power generation costs.
• Foreign exchange fluctuations, impacting equipment procurement and project costs.
• Public perception and a trust gap, due to years of poor electricity service.
• Legal and transitional complexities arising from the shift to a state electricity market.

Despite these challenges, we remain focused and are making steady progress.

What message do you have for the good people of Ondo State?

To the good people of Ondo State:
This administration is committed to delivering reliable, affordable, and sustainable electricity. The reforms you are seeing today are designed not just for immediate relief but for long-term transformation.

We ask for your patience and cooperation as these changes take root. The era of estimated billing, unreliable supply, and lack of accountability is being addressed decisively.

Under the leadership of Lucky Aiyedatiwa, we are building an energy sector that will power economic growth, create jobs, and improve the quality of life for all residents.The future of electricity in Ondo State is bright.