Amid the persistent outages, the Lagos State Government signed power purchase agreements (PPAs) with three generation companies in April to strengthen electricity supply and reduce reliance on the national grid.
Governor Babajide Sanwo-Olu witnessed the signing at Lagos House, Marina, with the Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, signing on behalf of the state.
The agreements involve Mainland Power Limited, Fenchurch Power Limited and Viathan Engineering—three independent power producers operating within Lagos.
Mr Sanwo-Olu said the agreements were designed to improve reliability, particularly for critical public infrastructure, while correcting inefficiencies in earlier arrangements.
“Today at Lagos House, Marina, I witnessed the signing of three power purchase agreements designed to build on existing capacity and address what has not been working,” the governor said.
He explained that Fenchurch Power would support major water facilities in Adiyan and Iju, while Mainland Power would continue supplying electricity to Ikeja, Oshodi and Anthony, with room for expansion. Viathan Engineering, he added, would sustain supply to key public facilities on Lagos Island.
The governor noted that the agreements had been restructured to reflect market realities, with payments now tied strictly to metered electricity supplied.
“We will no longer pay for power that is not delivered. Payments are now tied to actual, metered supply,” he stressed.
Mr Ogunleye said the state aims to scale generation capacity from about 60 megawatts to between 200MW and 400MW within two to three years through private sector investment.
He added that the Akute Independent Power Plant—now operated by Fenchurch Power—is undergoing rehabilitation after years of inactivity and is expected to serve surrounding communities, including the Adiyan Water Works.
On Lagos Island, Viathan Engineering is overseeing the Peninsula Integrated Power Project, with a combined installed capacity of 21MW across Lekki and Marina, supplying electricity to major government and health facilities
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