The Ondo State Government has asserted that the Nigerian Electricity Regulatory Commission (NERC) holds no superior authority over state regulators within the Ondo State electricity market.
The Honourable Commissioner for Energy and Mineral Resources, Engr. (Dr.) Johnson Alabi, reaffirmed the Ondo State Government regulatory authority over electricity assets on Friday through a statement issued by the Press Secretary of the Ministry of Energy and Mineral Resources, Debbie Funmilayo on Wednesday.
Starnews NG reports that the statement comes in light of the formal notification to NERC regarding the state’s approval of a leasing arrangement between the Ondo State Power Company (OSPC) and the Niger Delta Power Holding Company (NDPHC).
Engr. Alabi emphasized that the approval includes the utilization of the “33kV distribution line spanning Omotosho to Rubber Estate” and a “30km 33kV line extending to Fortune University, Igbotako.” These infrastructural assets are now under the jurisdiction of the Ondo State Electricity Regulatory Bureau (OSERB).
During a press briefing after a strategic meeting, Alabi, alongside the State Transitioning Committee Chairman Engr. Tunji Light-Ariyomo and OSERB State Coordinator Engr. Stephen Bolawole, expressed deep concern over what they perceive as ongoing regulatory interference by NERC. “Any attempt by NERC to issue directives or reassign operational control over these assets is ultra vires, legally unsustainable, and an abuse of regulatory authority,” he stated.
Alabi asserted that following the formal handover of the electricity infrastructure, “all regulatory authority over such assets now resides with OSERB,” in accordance with the constitutional and statutory provisions governing electricity regulation in Nigeria.
Regulatory Asset Base Justification
The Commissioner outlined the state’s position regarding the Regulatory Asset Base (RAB), which governs the recognition and valuation of electricity assets. He noted that the Omotosho 33kV network now forms part of the RAB of the Ondo State electricity market, emphasizing that only “the competent regulator within that jurisdiction,” in this case OSERB, has the authority to determine the commercial utilization and tariff treatment of such assets.
Alabi warned that allowing a federal regulator to control assets already integrated into a state’s RAB could lead to “regulatory duplication and conflict,” as well as “distortion of tariff determination frameworks” and “uncertainty in investment recovery mechanisms.”
Clear Position on Jurisdiction
To clarify the matter, the Commissioner reaffirmed that OSERB has approved the transfer and utilization of both the “54km, 33kV Omotosho distribution line” and the “30km Fortune University feeder line” from NDPHC to OSPC. He made it clear that NERC lacks any residual jurisdiction over these distribution assets and cannot lawfully interfere with decisions regarding them.
Legal and Regulatory Framework
In referencing legal frameworks, Alabi pointed out that OSERB had assumed full regulatory oversight over BEDC Electricity Ondo Limited (BEOL) since October 22, 2024. He cited the Electricity Act, 2023, which prohibits the transfer of electricity undertakings without the consent of the relevant regulator, and emphasized that the “Omotosho 33kV network constitutes distribution infrastructure geographically located within Ondo State.”
Commitment to Market Development
Engr. Alabi concluded with a commitment that the Ondo State Government, through OSERB, will continue to protect electricity consumers, ensure fair market operations, promote investment certainty, and enforce regulatory discipline among all operators in the state.
In a final note, OSERB issued a caution that any operation or directive outside the approved leasing arrangement would be considered a regulatory breach, subject to appropriate sanctions.
This press statement underscores the Ondo State Government’s determination to assert its regulatory authority and ensure efficient electricity delivery within its jurisdiction, Starnews reports.
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