Ondo State Government Moves to Take Over Power Distribution from BEDC
By peterside Rejoice Eneky
The Ondo State Government has announced its intention to assume control of electricity distribution across the state from the Benin Electricity Distribution Company (BEDC), citing the latter’s consistent failure to provide adequate power supply.
This development was disclosed by Engr. Johnson Alabi, Special Adviser to Governor Lucky Aiyedatiwa on Power, during a stakeholders’ meeting in Akure, the state capital.
Alabi explained that despite numerous engagements with BEDC, there had been no significant improvements in electricity supply, prompting the state government to take decisive action. He stated that the administration is prepared to inject $5 million into revamping the state’s electricity distribution infrastructure to improve service delivery.
“You all know the power situation in Ondo State is not at its best,” Alabi said. “We have engaged BEDC repeatedly, but progress has been unsatisfactory. It appears the company lacks the financial capacity to meet the needs of our people. The state government is therefore prepared to take over distribution operations to bring electricity to the doorstep of all residents.”
Alabi stressed that it was no longer acceptable for communities to contribute funds for transformers, poles, and cables, adding that it is the responsibility of the utility company to handle such provisions. He also noted that legal provisions allow the state to take over the distribution network, compensating BEDC under the “Distribution Use of System” framework while potentially partnering with consultants and investors.
The proposed takeover will involve the state managing financial operations, while BEDC retains some technical and staffing responsibilities, Alabi added.
However, BEDC’s Acting Managing Director, Jonathan Lawal, through Chief Commercial Officer Akinyele Ogunleye, criticized the use of the term “takeover,” asserting that such language was inappropriate in a democratic setting. He emphasized that the company remains open to franchising arrangements, which he said are more collaborative and mutually beneficial.
“There is nothing wrong with franchising,” Ogunleye said. “We acknowledge there are underserved areas, and we welcome investors to manage power supply in those zones. But it is important to remember that electricity supply is a national issue. The limited megawatts available nationally constrain what we can distribute.”
The unfolding situation has sparked a broader debate about the role of state governments in electricity distribution, amid widespread dissatisfaction with Nigeria’s power supply system.
About Author
