Lagos Signs Power Deals Aimed at Raising Supply to 400MW

The Lagos State Government has signed a power purchase agreement with three electricity generation companies in a move to expand energy supply and strengthen infrastructure across the state.

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

The partner firms; Mainland Power Limited, Akute Independent Power Plant and Fenchurch Power Limited, are expected to play a central role in scaling up electricity generation capacity within Lagos.

Speaking after the signing, Sanwo-Olu described the agreement as a people-focused initiative aimed at improving living conditions through more reliable power supply. He said the partnership marks the beginning of broader reforms in the state’s energy sector and urged all parties to uphold their commitments.

Ogunleye said the agreement is structured to increase generation capacity while reviving underutilised assets without placing additional financial pressure on the state.

He noted that the three firms currently generate about 60 megawatts, with plans to scale output to between 200MW and 400MW over the next two to three years.

Mainland Power Limited, which operates the Ikeja GRA plant, currently supplies electricity to areas spanning Ikeja to Oshodi, including critical facilities such as the Lagos State University Teaching Hospital and the Lagos State Urban Renewal Agency.

The Akute Independent Power Plant, now under Fenchurch Power Limited, is being repositioned as a major energy hub after remaining dormant for several years. Rehabilitation efforts are underway to restore supply to surrounding communities, including the Adiyan Water Works.

On the Island corridor, power infrastructure operated by Viathan Engineering under the Peninsula Integrated Power Project is expected to support key government facilities, including Lagos House, the deputy governor’s residence and Lagos Island General Hospital.

Nigeria’s 36 states have increasingly sought independent power solutions as the national grid, with an installed capacity exceeding 13,000 megawatts, routinely delivers less than 4,000 megawatts to consumers nationwide.

Lagos, which accounts for roughly a quarter of the country’s GDP, has positioned energy security as a prerequisite for sustaining its economic primacy.