The Lagos State Government has signed Power Purchase Agreements (PPAs) with three independent power producers—Mainland Power Limited, Akute Independent Power Plant, and Fenchurch Power Limited—in a move aimed at significantly improving electricity supply across the state.
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The agreements were executed on Sunday at Lagos House, Marina, witnessed by Governor Babajide Sanwo-Olu.
The agreements were executed on Sunday at Lagos House, Marina, witnessed by Governor Babajide Sanwo-Olu. Abiodun Ogunleye, the state Commissioner for Energy and Mineral Resources, signed on behalf of the state government.
While Mainland Power Limited and the Akute Independent Power Plant are existing operators within Lagos, Fenchurch Power Limited joins as a new partner. The three firms represent part of the state’s growing network of Independent Power Plants (IPPs).
Speaking at the signing ceremony, Sanwo-Olu urged the partners to uphold the terms of the agreements and demonstrate professionalism in delivering on their commitments.
“This agreement is about the people and how quickly we can solve problems. We must keep our promises on both sides. When people benefit, life becomes easier. This marks the beginning of the reforms we are driving in the energy sector,” the governor said.
Ogunleye, the state Commissioner for Mineral and Energy Resources, described the agreements as a strategic step toward increasing generation capacity and revitalising underutilised assets. He noted that the three companies currently have a combined generating capacity of about 60 megawatts (MW), with the potential to scale up to between 200MW and 400MW within the next two to three years.
He added that the expansion would be achieved without placing additional strain on public finances, as the firms are expected to operate competitively within the market to deliver sustainable power.
According to the commissioner, Mainland Power Limited, which operates the Ikeja GRA plant, has an installed capacity of 8.8MW and a contracted capacity of 5.8MW. The plant supplies electricity to key public infrastructure, including the Lagos State University Teaching Hospital (LASUTH) and facilities under the Lagos State Urban Renewal Agency (LASURA), as well as strategic substations across Ikeja and Oshodi.
The Akute Independent Power Plant, now to be managed by Fenchurch Power Limited, has a contracted capacity of 26MW. Previously dormant for about five years, the plant is undergoing rehabilitation and upgrade under a long-term operational framework. It is expected to serve surrounding communities, including the Adiyan Water Works.
For the Island corridor, Viathan Engineering, which manages the Island Power Limited/Peninsula Integrated Power Project, operates a combined installed capacity of 21MW—comprising 6MW in Lekki and 15MW in Marina.
The project supplies electricity to critical infrastructure such as the Lagos State Government House, the Deputy Governor’s residence, Lagos Island General Hospital, and Lagos Island Maternity Hospital.
Industry stakeholders at the event commended the Sanwo-Olu administration for advancing infrastructure development and strengthening investor confidence in Lagos’ energy sector, positioning the state as a viable hub for power sector investment.
