by Adetayo Adegbemle

Osun State is at a pivotal moment, transitioning from a power consumer dependent on the often-failing national grid to an emerging hub for regulation and generation.

With the recent passage of the Osun State Electricity Market Regulatory Bill 2025, the state has signaled a robust readiness to seize control of its electricity destiny, setting the stage for aggressive electrification and a corresponding boost in industrialization.

This landmark legislation, a direct response to the Electricity Act 2023 which devolved power sector authority to states, is the essential policy framework required to power Osun’s economic future.

The Legislative and Regulatory Foundation

Osun’s preparedness is firmly rooted in its decisive legal and institutional actions.

The Osun State House of Assembly’s passage of the Electricity Market Regulatory Bill 2025 is the foundational step.

This bill paves the way for the establishment of the State Electricity Regulatory Agency (SERA) or Osun State Electricity Regulatory Commission (OSERC).

This body will be empowered to:
Issue licenses to private power producers, mini-grid operators, and other sector investors.

Regulate and monitor the in-state electricity market.

Set rules and standards for electricity generation and distribution.

Address customer-service complaints and act as a watchdog against the alleged exploitation by existing distribution companies (DisCos) like the Ibadan Electricity Distribution Company (IBEDC).

The state government, through the Ministry of Energy, has already been directed to develop a detailed implementation plan with clear timelines and deliverables.

This proactive step, including a mandate to seek supportive assistance from the National Electricity Regulatory Commission (NERC), demonstrates a practical commitment to a smooth and effective transition of regulatory authority.

The legal and institutional frameworks are not just proposed; they are rapidly being instantiated.

Catalysing Electrification and Investment

The new electricity framework is expressly designed to address the chronic power supply crisis in Osun and drive widespread electrification.

By diversifying and regulating its power sources, the state aims to achieve self-sufficiency and even potentially export power to neighbouring states.

Unlocking Private Sector Participation

The new law is an open invitation to investors. The regulatory commission will grant licenses for off-grid and mini-grid power generation, providing a clear path for private firms to participate in the local electricity market.

The key benefits for investors include:

Regulatory Certainty: A state-level regulator will provide clearer, more localized rules, removing bureaucratic hurdles previously managed at the federal level.

Diversified Energy Mix: Osun is rich in natural resources, including solar and river assets.

The policy encourages the adoption of renewable energy (solar and hydro) to complement traditional power sources, attracting investment in clean and sustainable energy projects.

This is critical for powering communities currently without grid access through schemes like the “Electrify Osun” program, which targets all towns and villages.

Consumer Protection: By regulating service delivery and addressing issues like arbitrary billing and lack of smart meters, the commission will create a more stable and predictable market environment, boost consumer confidence and ensuring a more viable revenue stream for investors.

The Engine of Industrialization

Reliable, affordable electricity is the bedrock of industrial growth.

The persistent power shortages previously limited Osun’s industrial output.

The new framework directly tackles this constraint, positioning the state for an industrial boom.

Reliable Power for Businesses: Governor Adeleke himself stressed that a regular power supply is the “engine room of economic growth.”

Industries, whether large manufacturing plants or small and medium enterprises (SMEs), require predictable, high-quality power to operate efficiently.

The new decentralized market allows industrial clusters and new business hubs, such as the proposed International Trade Centre with its own independent power plants, to secure uninterrupted power supplies, thereby reducing operational costs and increasing competitiveness.

Attracting New Industries: The confidence provided by a state-controlled, transparent, and investment-friendly electricity market will be a significant factor for companies looking to establish new facilities.

By ensuring that industrial zones have priority access to stable power, Osun is making a strong case as a preferred destination for manufacturing and processing industries.

Research has consistently shown that in Nigeria, the positive effect of electricity on economic growth is channeled primarily through electricity-induced industrial growth.

Economic Transformation: By resolving the chronic power crisis, the state is deepening and boosting its overall economy.

The investment in power infrastructure and generation creates local jobs, while the subsequent industrial expansion enhances the state’s Gross Domestic Product (GDP) and improves the living standards of its citizens.

In conclusion, Osun State has moved past the planning phase and into the implementation stage of its electricity sector reform.

The Electricity Market Law is the policy lightning rod that will attract the necessary private capital to electrify the state, diversify its energy portfolio, and finally provide the stable, regulated power that is essential to ignite a lasting and sustainable wave of industrialization.

The path is clear: through regulatory independence and a strategic focus on energy self-sufficiency, Osun is ready to illuminate its future.

– Adetayo Adegbemle is an Executive Director of PowerUp Nigeria is a leading power sector advocacy organization championing universal access to sustainable energy and resilient infrastructure.

Through policy engagement, community empowerment, and partnerships, we strive to eradicate energy poverty and drive equitable development nationwide.

Adetayo Adegbemle is also pivotal and involved in developing the State Electricity Market Law