Private Financing Powers Overhaul of Lagos Water Grid

Zenith Bank has stepped in to finance a complete rebuild of the 26-megawatt (MW) Akute Independent Power Plant to secure round-the-clock electricity for major water facilities in Lagos State. Fenchurch Group started site operations on Saturday, September 26, 2026, by removing old machinery at the plant.

Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, joined Zenith Bank representative Usifo Ogbebor on Monday to inspect new gas engines at the Oregun workshop of Jubaili Bros Engineering Ltd.

The project uses private capital to fix power shortages that restrict clean water production across the state.

Two-phase plan to restore steady water flow

Fenchurch Power Limited acts as developer, while Aggregate Utilities Limited holds the project concession under an agreement with the Lagos State Government.

Contractors will replace old engines with new MWM gas units in two stages. The team will deliver 10 MW of power within four months and supply the remaining 16 MW within 12 months.

Group CEO of Fenchurch Group, Olufemi Bakare, stated that public-private partnerships keep vital utility assets running.

"Water needs power. Lagos State has invested significantly in its water infrastructure, and our mandate is to keep it running reliably, around the clock," Bakare said.

"This project shows what effective public-private partnership can deliver."

Ogunleye stated that the 26 MW capacity targets peak electricity demand for the connected facilities.

"It's 26 MW we are saying now because 26 MW is your peak demand," Ogunleye said.

"Not only is the State Government investing a lot in our water production facilities, but we are also anticipating a lot of investment in power generation as a whole."

Ogunleye added that the Akute project site can expand generation capacity to 100 MW or 200 MW in future phases.

Connecting power infrastructure to major waterworks

The reconstructed Akute plant will supply dedicated power to Akute Intake, Iju Waterworks, and Adiyan Waterworks. The three sites will achieve a combined production capacity of 185 million gallons per day once the Adiyan Phase II project finishes.

Fenchurch will send any leftover electricity from the plant into Ikeja Electric's distribution network.

Engineers from Lagos Water Corporation (LWC) and the General Manager of Lagos State Electrification Agency, Engr. K.A.T. Balogun, participated in Monday's engine inspection alongside state officials.

Original equipment manufacturer Jubaili Bros Engineering Ltd. handles engine containerisation before site installation. LWC Managing Director, Engr.

Mukhtaar Tijani, confirmed that the state government approved separate pump repairs at Iju Headworks and Akute Intake. That eight-month repair exercise runs from February to October 2026.

Official data from the Ministry of Environment and Water Resources shows that public water pipes reach 44 per cent of Lagos residents, with 1.5 million people actively connected to the system.

Serviced locations include Akilo, Parkview Estate, Abesan, and parts of Lekki 1. A concession is a legal contract where a government allows a private company to rebuild, operate, and manage a public facility for a set period.

LWC announced plans in September 2025 to lease out seven smaller water plants to private investors. The scheme covers mini and micro waterworks at Lekki, Akilo, Victoria Island Annex, Magodo, Alexander, and Apapa.