The Lagos State Government has signed Power Purchase Agreements (PPAs) with three independent power producers—Fenchurch Power, Mainland Power and Viathan Engineering—to supply approximately 60 MW of electricity to the state’s public facilities. The agreements, signed on behalf of the government by Commissioner for Energy and Mineral Resources Abiodun Ogunleye at Lagos House, Marina, are part of a broader strategy to increase the state’s generation capacity to between 200 MW and 400 MW within the next two to three years.
Governor Babajide Sanwo‑Olu announced that the PPAs are aligned with the Lagos State Electricity Law 2024 and the Nigerian Electricity Act, and will be funded through market‑driven investments rather than public expenditure. Under the new contracts, payments will be made only for power that is actually metered and delivered, a shift intended to reduce waste and improve cost management.
Fenchurch Power will operate the Akute Independent Power Plant, which has a contracted capacity of 26 MW and is being rehabilitated after five years of dormancy. The plant is expected to serve the Adiyan Water Works and surrounding communities. Mainland Power, with an installed capacity of 8.8 MW and a contracted output of 5.8 MW, will continue to supply power to strategic facilities in the Ikeja GRA area, including Lagos State University Teaching Hospital and other substations. Viathan Engineering will manage the Peninsula Integrated Power Project, comprising 21 MW of installed capacity (6 MW in Lekki and 15 MW in Marina), and will provide electricity to key government and health institutions on Lagos Island, such as the Governor’s Office, Lagos Island General Hospital and Lagos Island Maternity Hospital.
The commissioner emphasized that the agreements aim to revive dormant assets, expand generation, and create a sustainable energy supply for public infrastructure. By tying remuneration to actual delivery, the state seeks to ensure a reliable power supply while safeguarding fiscal resources.
These arrangements mark a significant step toward meeting Lagos’s growing electricity demand and enhancing the resilience of its power network. The government plans to monitor the performance of the three partners and pursue additional private‑sector investments to achieve the targeted 200‑400 MW capacity in the coming years.
