Expert Hails New Edo State Electricity Law as Policy Ushers in Competitive Power Market

Peter Uzoho

The Lead Consultant on Power to the Nigeria Governors Forum (NGF), Mr. Odion Omonfoman has applauded the signing of the Edo State Electricity Bill 2025 into law, describing the new law as a game-changer for Edo State’s electricity sector.

Omonfoman, who is also the Group Managing Director of New Hampshire Capital, a leading investment firm in the power sector, added that the law provides a stable and transparent regulatory framework that will attract investment, improve electricity access, and support industrialization.

The bill which was recently assented to by the Governor of Edo State, Monday Okpebholo, has repealed the Edo State Electricity Law 2022 and established a structured framework for intra-state electricity generation, transmission, distribution, and regulation, setting the stage for a more reliable and investor-friendly power sector in the state.

The legislation aligned with the Electricity Act 2023 that empowers states to regulate electricity within their jurisdictions, and represents a decisive step taken by the state government toward energy independence and improved electricity supply in Edo State.

With the signing of this law, Edo State joins a growing list of sub-national governments taking charge of their power infrastructure, aiming to reduce dependence on the national grid and drive industrial and economic growth.

The new Edo State Electricity law lays the foundation for a competitive electricity market in the state, opening opportunities for private sector participation and independent power producers (IPPs).

Some of the core provisions of the new law include the Establishment of the Edo State Electricity Market; creation of a structured market that allows public and private entities to generate, distribute, and trade electricity within the state and the market-driven approach is expected to improve service reliability and efficiency.

The law also establishes several key institutions, including the Edo State Electricity Regulatory Commission (ESERC), a regulatory body tasked with overseeing licensing, tariffs, compliance, and consumer protection; and creation of the Edo State Electrification Agency, focused on expanding electricity access to rural and underserved communities.

It equally provided for the creation of the Edo State Electricity Transmission Company, which is responsible for intra-state transmission infrastructure, working in synergy with the national grid.

Also, the new law prescribed the.creation of the Edo State Electricity Advisory Council, a body comprising industry experts and stakeholders, providing strategic guidance for sector development.

The law also placed sigjnificant emphasis on promotion of renewable energy by incentivizing investment in renewable energy projects, embedded generation, and distributed energy resources, aligning with global sustainability goals.

In addition, the Edo State Electricity Law 2025 made provision for consumer protection and service accountability by establishing clear standards for electricity billing, metering, and dispute resolution while imposing penalties for vandalism, energy theft, and service violations.

But commenting further in a statement sent to THISDAY, Omonfoman stated, “The Edo State Electricity Law 2025 is a landmark legislation that positions Edo State as a leader in sub-national electricity reform. It creates a structured and competitive market, which is critical for attracting private sector investments in power generation and distribution. By establishing the ESERC as an independent regulator, the law ensures transparency, regulatory certainty, and consumer protection—all of which are essential for a thriving electricity sector.”

Highlighting the investment prospects of the law, he emphasized that the law will unlock new opportunities for both local and international investors in power generation, mini-grid solutions, and renewable energy development.

“This law sets the foundation for decentralized power generation and distribution, which is crucial for meeting the electricity demand of Edo State’s industries, businesses, and households. As an investor in the power sector, I see enormous potential in leveraging this framework to develop embedded generation projects, renewable energy initiatives, and rural electrification schemes,” he added.

However, with the passage of the law, all eyes will now be on the Edo State Government and the newly established regulatory agencies to drive its full implementation, ensuring that the benefits reach businesses and residents alike.

The signing of the Edo State Electricity Law 2025 by Okpebholo marks the beginning of a new era for electricity governance in the state.

With its focus on market liberalization, regulatory clarity, and sustainable energy development, the law is expected to drive economic growth, enhance energy security, and position Edo as a model for other states seeking power sector reforms.

Following this enactment, the next steps for the government will include the establishment of ESERC, licensing of new power operators, and rollout of electrification initiatives to ensure that the objectives of the law translate into tangible benefits for the people of Edo State.