A call has been made to the Governor of Edo State, Monday Okpebholo, to urgently constitute the Edo State Electricity Regulatory Commission, as the move is critical to breaking the electricity monopoly and attracting investment into the state’s power sector.
The Lead Consultant on power to the Nigeria Governors’ Forum, Odion Omonfoman, made the call in a statement made available to our correspondent.
This follows the March 9 groundbreaking for a 100MW independent power plant in Ologbo, owned by CCETC, which he described as a key milestone under the Edo State Electricity Law.
Omonfoman said, “For decades, the promise of industrialisation and shared prosperity in Edo State has been hamstrung by a single, systemic bottleneck: the lack of reliable, affordable electricity.”
While commending the governor’s solidarity with residents protesting against the Benin Electricity Distribution Company, he stressed that action was now required.
“While the governor’s solidarity with protesters against the Benin Electricity Distribution Company is commendable, political empathy must now transition into firm policy and regulatory action. The path to breaking the BEDC monopoly and lighting up Edo State lies in the immediate and effective constitution of the Edo State Electricity Regulatory Commission,” he said.
Omonfoman noted that as Edo State attracts investors into its electricity market, a regulatory framework would be required. He explained that the legal basis for the commission already exists, adding that the state only needed to operationalise it.
“As Edo attracts more investors, such as CCETC, into its electricity market, it will require a licensing framework in compliance with its own laws and the Electricity Act 2023. It will also require a fair, transparent determination of wholesale and retail electricity tariffs within the state to support these multi-million-dollar investments.
“The legal foundation for establishing ESERC already exists. The Edo State Electricity Law 2025 creates and gives powers to the ESERC to license and regulate all aspects of the electricity value chain — from generation, transmission, and distribution — within Edo State. Furthermore, the Nigerian Electricity Regulatory Commission has already issued the order to transfer regulatory oversight to the state.
“Edo State has the law; Edo State has the federal clearance. What is outstanding is to institute the ESERC—the ‘engine room’ to bring the Edo State electricity market to life,” he added.
He further argued that the commission would help address long-standing consumer complaints. Omonfoman noted that the primary grievance of electricity customers in Edo State and nationwide is the lack of choice of electricity service providers.
He maintained that prior to the Electricity Act 2023, DisCos such as BEDC operated as electricity monopolies within their franchise areas. In the absence of competition, he said, “DisCos operate a service model that incentivises the distribution of darkness” rather than electricity.
“The ESERC is designed to change this. By setting up a localised, market-based regulatory framework, the commission can license new operators and create a competitive market similar to the telecommunications sector; ensure that electricity pricing is transparent and reflective of service quality and affordability, while assuring a fair return to investors in the sector; protect electricity consumers from exploitative actions of BEDC and other electricity service providers, such as unfair billing, poor customer service, and even rampant extortion by a few unscrupulous staff; and ensure all market operators within the state adhere to both national and state technical, safety and environmental codes and standards in their operations,” he stated.
Omonfoman also warned against politicising appointments to the commission. “To achieve its mandate, the ESERC cannot be a dumping ground for political patronage. There should be no political considerations in the appointment of the chairman and executive commissioners of the ESERC.
“The governor must constitute the commission with seasoned professionals—engineers, energy economists, legal experts, and other professionals with deep experience in power markets,” he stated.
He emphasised that the state must compete for investments with others that have already established electricity markets. “Edo State will be competing for investments with other states that have established their electricity markets. Edo State must create the right regulatory framework to attract local and international investors to its electricity market,” he said.
Omonfoman added that competent professionals were needed to manage the transition from federal to state regulation.
“Setting up a market-based electricity regulatory institution is a complex task. It requires individuals who understand how to de-risk investments for private capital while balancing the socio-economic energy needs of the populace. Investors will only bring their billions into Edo’s electricity market if they see a regulatory environment that is stable, predictable, and led by competent hands.
“ESERC needs the right set of professionals to midwife the transition from NERC to state regulatory oversight. A poorly midwifed transition handled by inexperienced regulators will be costly to electricity consumers in Edo State. It may even politically affect Governor Okpebholo’s second-term ambitions,” he added.
He also stressed the need for adequate funding for the commission’s operations.
