In a decisive move to tackle Nigeria’s long-standing electricity challenges, the Babajide Sanwo-Olu-led Lagos State Government has signed new Power Purchase Agreements (PPAs) with three independent power producers to significantly increase power supply across the state.
The agreements, signed at Lagos House, Marina, are aimed at scaling embedded generation capacity from the current 60 megawatts (MW) to between 200MW and 400MW within the next two to three years—marking a major leap toward energy stability in Lagos, Africa’s most populous city.
The Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, signed on behalf of the state government. The partner companies include Mainland Power Limited, Fenchurch Power Limited (in collaboration with Aggregate Utilities Limited), and Viathan Engineering Limited. Notably, Fenchurch Power joins the initiative as a new entrant.
Governor Sanwo-Olu described the development as a critical milestone in the state’s electricity reform drive, emphasizing that the updated PPAs now ensure payments are tied strictly to actual metered electricity delivered—addressing inefficiencies that plagued previous agreements.
“This is designed to build on existing capacity and fix what has not been working,” the governor said, adding that the agreements align with the Lagos State Electricity Law 2024 and the Electricity Act.
Key Highlights of the Agreements
- Immediate Impact: Strengthens commercial terms for the current ~60MW output.
- Expansion Plans: Private sector-led growth targeting up to 400MW within 2–3 years.
- Targeted Supply Areas:
- Mainland Power will continue supplying Ikeja, Oshodi, Anthony, and surrounding areas.
- Fenchurch Power will support major water facilities in Adiyan and Iju.
- Viathan Engineering will maintain supply to key Lagos Island facilities and improve grid integration.
