Lagos signs Power deal with three firms to boost Electricity supply

The Lagos State Government has signed a Power Purchase Agreement (PPA) with three electricity generation companies in a move aimed at strengthening power supply and accelerating energy reforms across the state.

The agreement, signed on Sunday at Lagos House, Marina, was witnessed by Governor Babajide Sanwo-Olu, with the Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, signing on behalf of the state.

The partner firms-Mainland Power Limited, Akute Independent Power Plant, and Fenchurch Power Limited, form part of the Independent Power Plants (IPPs) operating within Lagos, with Fenchurch joining as a new entrant in the collaboration.

Speaking after the signing ceremony, Sanwo-Olu described the agreement as people-focused and urged all parties to honour their commitments to ensure its success.

“This agreement is about the people and how easily we can solve problems. Let’s keep promises from both sides. When people benefit, it makes life easier. This is the beginning of reforms we are seeing in the energy sector,” he said.

Ogunleye explained that the agreement is designed to boost generation capacity and revitalise existing infrastructure, particularly dormant power assets, to ensure more reliable electricity supply.

He noted that the three plants currently have a combined capacity of about 60 megawatts (MW), with projections to scale up to between 200MW and 400MW within two to three years through market-driven expansion rather than direct government funding.

According to the commissioner, Mainland Power Limited, which operates the Ikeja GRA plant, has an installed capacity of 8.8MW and supplies power to critical facilities, including the Lagos State University Teaching Hospital (LASUTH) and the Lagos State Urban Renewal Agency (LASURA).

He added that the Akute Independent Power Plant, now to be managed by Fenchurch Power Limited, is being repositioned after years of inactivity. The plant, with a contracted capacity of 26MW, is undergoing rehabilitation and is expected to serve surrounding communities, including the Adiyan Water Works.

For the Island corridor, Ogunleye said Viathan Engineering, which oversees the Island Power Limited/Peninsula Integrated Power Project, operates a combined capacity of 21MW across Lekki and Marina.

The project supplies electricity to key government infrastructure, including the Government House, the Deputy Governor’s residence, and major health facilities.

The participating firms commended the Sanwo-Olu administration for creating an enabling environment for investment, noting that the agreement sends a strong signal about Lagos’ commitment to improving its energy ecosystem and attracting private sector participation.

The initiative is part of broader efforts by the state government to deepen energy reforms, improve electricity access, and support economic growth through reliable power supply.