Why Gov. Okpebholo must urgently constitute Edo electricity regulatory commission, By Odion Omonfoman

ESERC needs the right set of professionals to midwife the transition from NERC to state regulatory oversight.

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.

On 9th March, Governor Monday Okpebholo broke ground for a 100MW independent power plant in Ologbo, Edo State. The plant, owned by CCETC, a Chinese private power firm, is the first IPP to be built under the Edo State Electricity Law, signed by Governor Okpebholo in 2025.

The Ologbo IPP groundbreaking event represents a defining moment in Edo State’s journey towards delivering reliable power within its boundaries. 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. The persistent cries of our citizens — recently echoed in the protests at Ring Road, which Governor Monday Okpebholo remarkably joined in solidarity — are not just about darkness; they are about the stifling of small businesses, the high cost of living, and the frustration of an electricity monopoly that has long outlived its efficacy and necessity.

While the Governor’s solidarity with protesters against the Benin Electricity Distribution Company (BEDC) 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 lie in the immediate and effective constitution of the Edo State Electricity Regulatory Commission (ESERC).

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 Mandate

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 (NERC) has already issued the order to transfer regulatory oversight to the State.

Edo State has the law; it has the federal clearance. What is outstanding is to institute the ESERC — the “engine room” to bring the Edo State electricity market to life.

Breaking the Electricity Monopoly through Regulation

The primary grievance of electricity customers in Edo State and nationwide is the lack of choice of electricity service providers. Prior to the EA 2023, DisCos such as BEDC operated as electricity monopolies within their franchise areas. In the absence of competition, DisCos operate a service model that incentivise 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 (i) license new operators and create a competitive market similar to the telecommunications sector, (ii) ensure that electricity pricing is transparent, reflective of service quality and affordability, while assuring a fair return to investors in the sector, (iii) 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 (iv) ensure all market operators within the State adhere to both national and state technical, safety and environmental codes and standards in their operations.

The Need to Appoint Sound Professionals and Experts

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.

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.

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.

Lastly on this point, 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.

Prioritising Funding for ESERC’s operations

For the ESERC to remain truly independent and effective, the Edo State Government must prioritise funding for its regulatory operations. A regulator that relies on the “goodwill” of those it regulates is compromised from the start.

The state must provide the initial take-off grant and sustainable budgetary allocations to ensure the Commission can hire the best talent, invest in monitoring technology, and maintain its autonomy. This is not just another government overhead expenditure. Every naira spent on ESERC will yield multiples in industrial growth, job creation, and improved quality of life.

Odion Omonfoman is the lead consultant on power to the Nigeria Governors Forum (NGF). He can be reached through orionomon@outlook