The Lagos State Government has taken a significant step toward improving electricity supply by signing a 60-megawatt (MW) Power Purchase Agreement (PPA) with three independent power firms, as part of efforts to strengthen energy infrastructure across the state.
Governor Babajide Sanwo-Olu disclosed that the agreements, executed with Fenchurch Power, Mainland Power, and Viathan Engineering, will deliver an initial combined generation capacity of about 60MW. The signing ceremony took place at Lagos House, Marina, with the Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, representing the state government alongside executives of the partner firms.
According to the governor, the initiative is part of a broader strategy to scale electricity generation capacity to between 200MW and 400MW within the next two to three years. This expansion will be driven primarily by private-sector investment under the framework of the Lagos State Electricity Law 2024, in alignment with the Nigerian Electricity Act.
Sanwo-Olu explained that the agreements are structured to address longstanding inefficiencies in the power sector by prioritizing performance-based delivery. Under the revised terms, payments will now be tied strictly to verified, metered electricity supply, a move aimed at eliminating waste and ensuring value for public expenditure. He emphasized that the government would no longer pay for undelivered power, signaling a shift toward greater accountability in energy procurement.
The distribution of power under the agreements will target key public infrastructure across Lagos. Fenchurch Power is expected to support major water facilities, including those in Adiyan and Iju, while Mainland Power will continue supplying electricity to areas such as Ikeja, Oshodi, and Anthony, with provisions for future expansion. Viathan Engineering will focus on maintaining stable electricity supply to critical facilities on Lagos Island, alongside efforts to enhance integration with the state’s distribution network.
Providing further details, Ogunleye noted that the combined 60MW capacity currently operated by the firms is expected to increase significantly as dormant assets are rehabilitated and new investments are introduced. He highlighted that Mainland Power operates an installed capacity of 8.8MW in the Ikeja GRA axis, with a contracted supply of 5.8MW serving strategic institutions, including the Lagos State University Teaching Hospital.
He also revealed that the Akute Independent Power Plant, now under Fenchurch Power, has a contracted capacity of 26MW and is undergoing extensive upgrades after being inactive for nearly five years. Once fully restored, the plant is expected to function as a major energy hub, supplying electricity to surrounding communities and critical facilities such as the Adiyan Water Works.
Meanwhile, Viathan Engineering will oversee the Peninsula Integrated Power Project, which has a combined installed capacity of 21MW, comprising 6MW in Lekki and 15MW in Marina. These facilities are expected to provide stable electricity to key government institutions, including Lagos Government House, Lagos Island General Hospital, and Lagos Island Maternity Hospital.
The state government noted that the agreements mark a shift toward a more sustainable, market-driven energy model, with a focus on reliability, efficiency, and long-term capacity growth.
