Edo State: New Law Facilitates Electricity Private Investment

• Edo State is actively seeking private investment to enhance its electricity supply and position itself as a key player in the power sector.
• The Edo State Electricity Law 2024 and the establishment of the Edo State Electricity Regulatory Commission (ESERC) provide a new framework for private sector participation.
• Twelve companies have already received electricity generation and distribution licenses under the state's new regulatory regime.
• Edo State holds a 10% equity stake in the proposed 100MW Ologbo power plant, which also includes a 300-tonne-per-day LNG facility.
• The state is also pursuing a 200MW independent power project in Edo North and implementing a mass metering program.

The Edo State Electricity Law 2024, enacted by Governor Okpebholo in February 2025, establishes a comprehensive legal framework specifically designed to facilitate private sector involvement across the entire electricity value chain, from generation to transmission and distribution.

Edo State is actively seeking private capital to revitalize its electricity market and enhance power provision across the region. This strategic push aims to improve power supply throughout the state, addressing critical infrastructure needs.

Paul Usenbo, the State Commissioner for Power, recently affirmed this strategic direction, highlighting that ongoing regulatory adjustments, independent power generation schemes, and calculated equity stakes are designed to elevate Edo's standing within the broader energy landscape. These initiatives are central to the state's vision for a robust and self-sufficient power sector.

Under Governor Monday Okpebholo's administration, which is nearing its second anniversary, the state's electricity framework has undergone substantial policy and institutional transformations. These changes encompass a shift towards state-level regulatory authority, the issuance of licenses to private operators, an increase in generation capacity, new metering programs, and the formation of strategic alliances, all aimed at broadening electricity access and fostering industrial expansion.

A cornerstone of Edo State's energy transformation is the implementation of the Edo State Electricity Law 2024, enacted by Governor Okpebholo in February 2025. This legislation establishes a comprehensive legal framework specifically designed to facilitate private sector involvement across the entire electricity value chain, from generation to transmission and distribution. This significant regulatory shift is poised to unlock new opportunities for Edo State electricity private investment.

Complementing this legal reform is the establishment of the Edo State Electricity Regulatory Commission (ESERC). This body assumes regulatory oversight previously held by the Nigerian Electricity Regulatory Commission (NERC), marking a significant devolution of power and strengthening the state's capacity to govern its own electricity market. This transition represents a key aspect of Nigeria electricity market reforms at the sub-national level, creating a more localized and responsive regulatory environment for investors.

Under this updated regulatory structure, ESERC has already granted electricity generation and distribution licenses to a dozen private entities. These include CCETC Ogua Energy Limited, GTL Power Limited, IZ Energy, Etin Power Limited, Edo North Electricity Limited, Mid-Western Bulk Electricity Company Limited, Tetracore Power Company Limited, Victoria Power and Infrastructure, New Hampshire Capital Limited, Hydra Energy Solutions Limited, Nigeria Bottling Company Limited, and Halimatu Musa Hospital Limited. Furthermore, BEDC Electricity Edo Limited has received a six-month provisional license, contingent on meeting specific regulatory standards concerning compliance, transparency, accountability, and consumer protection, underscoring the state's commitment to a robust and fair market.

A key component of Edo State's strategy to bolster its power supply involves significant investment in generation projects. The state has secured a 10% equity interest in the proposed 100-megawatt power plant located in Ologbo, a deal negotiated with CCETC and First Bank. This participation positions the state as an equity partner, promising not only recurring revenue streams and job creation but also a stable electricity supply for local businesses and industries.

The Ologbo development extends beyond power generation, incorporating plans for a 300-tonne-per-day liquefied natural gas facility, for which Governor Okpebholo conducted the groundbreaking ceremony in February 2026. This integrated approach is designed to fortify the state's energy value chain and address the increasing electricity demands of its industrial sector, making the Ologbo 100MW power plant a pivotal project.

Beyond the Ologbo initiative, the government is also advancing a proposed 200MW independent power project in Edo North. Concurrently, efforts are underway to foster distributed generation and renewable energy investments, with the overarching goal of expanding electricity availability and improving access across all three senatorial districts of the state. These diverse Edo independent power projects collectively underscore Edo State's commitment to enhancing its energy infrastructure through strategic partnerships and varied generation sources. Additionally, the Ministry of Power is implementing a mass metering program, having deployed over 30,000 meters and allocated more than 38,000 under the initial phase of the free metering initiative, with plans to establish a meter assembly facility through private-sector collaboration.

Lawyers advising clients in the energy sector should note the significant regulatory shift in Edo State, Nigeria, with the implementation of the Edo State Electricity Law 2024 and the establishment of the Edo State Electricity Regulatory Commission. This creates new opportunities for private sector investment and development in generation, transmission, and distribution, requiring careful review of state-specific licensing and compliance frameworks.

Source: Original reporting via PUNCH.