Lagos State Government has signed Power Purchase Agreements with three electricity generating companies in a strategic move to significantly boost energy supply across Nigeria’s commercial capital.
The agreements were signed on Sunday at Lagos House, Marina, with Governor Babajide Sanwo-Olu witnessing the ceremony. The Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, signed on behalf of the state government.
The three companies, Mainland Power Limited, Fenchurch Power Limited, and Viathan Engineering, represent three of the four Independent Power Plants currently operating in Lagos State. While Mainland Power Limited and Akute Independent Power Plant have been operating in the state, Fenchurch is a new partner coming on board.
Speaking after the signing ceremony, Governor Sanwo-Olu urged all partners to uphold the sanctity of the agreements, exhibit commitment, and maintain professionalism to make the projects viable and improve residents’ lives.
“This agreement is about the people and how easily we can solve problems. Let’s keep promises from both sides. When people benefit, it makes life easier. This is the beginning of reforms we are seeing in the energy sector,” the governor said.
Commissioner Ogunleye described the agreements as a strategic move to increase power generation and revitalize dormant assets to provide reliable power supply to Lagosians. He revealed ambitious plans to scale up capacity significantly in the coming years.
“The three companies already have a combined generating capacity of 60MW. With this agreement, they can scale up to over 200 to 400MW in two or three years without draining the treasury but competing in the marketplace to provide sustainable energy to our citizens,” Ogunleye stated.
The commissioner provided detailed insights into each plant’s capacity and coverage areas:
“Mainland Power Limited handles the Ikeja GRA plant with an installed capacity of up to 8.8MW and a contracted capacity of 5.8MW. The plant serves a wide coverage area stretching from Ikeja to Oshodi, providing power to key public infrastructure including Lagos State University Teaching Hospital (LASUTH), Lagos State Urban Renewal Agency (LASURA), and other strategic substations within the state’s power network.
“Fenchurch Power Limited now manages the Akute Independent Power Plant, which has a contracted capacity of 26MW and is being repositioned as a major energy hub for Lagos State. Though previously moribund for the past five years, the plant is now being resuscitated through a comprehensive rehabilitation, upgrade, and long-term operational agreement. It will provide power to surrounding communities including the crucial Adiyan Water Works.
“Viathan Engineering, which oversees the Island Power Limited/Peninsula Integrated Power Project, operates plants with a combined installed capacity of 21MW — comprising 6MW at Lekki and 15MW at Marina. These facilities will supply power to critical public infrastructure including the Lagos State Government House, the Deputy Governor’s residence, and key health facilities such as Lagos Island General Hospital, Odan, and Lagos Island Maternity Hospital.”
The partner companies commended the Sanwo-Olu administration for setting the pace for infrastructural development in the country, noting that the government is sending clear signals to investors that Lagos provides a viable environment to improve the energy ecosystem.
The development represents a significant milestone in Lagos State’s ongoing power sector reforms and demonstrates the government’s commitment to addressing one of Nigeria’s most persistent infrastructure challenges through private sector partnerships. With the state targeting a fourfold increase in generating capacity within three years, residents and businesses can expect gradual but substantial improvements in electricity supply across the metropolis.