The Lagos State Government has signed a landmark Power Purchase Agreement (PPA) with three electricity generation firms to expand energy supply and strengthen power infrastructure across the state. The deal aims to increase generation capacity from approximately 60 megawatts (MW) to 400 MW within two to three years without placing additional financial burden on the state.
The agreement was formalized on Sunday, April 26, 2026, at Lagos House, Marina, in the presence of Governor Babajide Sanwo-Olu. Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, signed on behalf of the state. The partner companies—Mainland Power Limited, Akute Independent Power Plant, and Fenchurch Power Limited—are independent power producers operating within Lagos. Fenchurch joins the collaboration as a new entrant.
Governor Sanwo-Olu's Remarks
Speaking after the signing, Governor Sanwo-Olu described the deal as a people-centered initiative designed to improve living standards through more reliable electricity. He emphasized the need for all parties to honor their commitments, noting that the agreement signals the beginning of broader reforms in the energy sector. He stated: "This agreement is about the people and how easily we can solve problems. Let's keep promises from both sides. When people benefit, life becomes easier. This marks the beginning of the reforms we are seeing in the energy sector." He added that the deal means more reliable power for public infrastructure, better use of state resources, and a clear path to scale capacity over the next few years.
Details of the Agreement
Commissioner Ogunleye explained that the partnership aims to increase generation capacity while reviving underutilized assets without imposing additional financial pressure on the state. He disclosed that the firms currently produce about 60 MW, with plans to scale output to between 200 MW and 400 MW over the next two to three years.
Key Projects and Expected Impact
Mainland Power Limited, which operates the Ikeja GRA plant, has an installed capacity of 8.8 MW and currently delivers 5.8 MW to areas spanning from Ikeja to Oshodi. Major beneficiaries include the Lagos State University Teaching Hospital and the Lagos State Urban Renewal Agency, among other essential facilities.
The Akute Independent Power Plant, now managed by Fenchurch Power Limited, has a contracted capacity of 26 MW. After being inactive for about five years, the plant is undergoing upgrades to restore operations and supply electricity to nearby communities, including the Adiyan Water Works.
On the Island corridor, Viathan Engineering, operators of the Island Power Limited/Peninsula Integrated Power Project, oversee a combined capacity of 21 MW—6 MW in Lekki and 15 MW in Marina. The project is expected to support critical public infrastructure such as Lagos House, the deputy governor's residence, and key healthcare facilities like the Lagos Island General Hospital.
Positive Reactions from Partner Firms
The participating companies praised the Sanwo-Olu administration for fostering a conducive environment for infrastructure investment. They added that the agreement demonstrates Lagos' commitment to deepening its energy market and attracting long-term capital into the sector.
This power deal is expected to bring significant relief to Lagosians who have long endured blackouts. With a clear roadmap to increase generation capacity and revive dormant facilities, the state is poised for improved electricity supply that will benefit public institutions, businesses, and communities alike.
