In a major step toward improving electricity supply, the Lagos State Government has entered into a new Power Purchase Agreement with key independent power producers to strengthen energy delivery across the state.
The deal, formalized at Lagos House Marina, was witnessed by Governor Babajide Sanwo-Olu, while Energy Commissioner Abiodun Ogunleye signed on behalf of the government. The agreement brings together Mainland Power Limited, Akute Independent Power Plant, and Fenchurch Power Limited, with the latter joining as a new partner.
Officials say the initiative is aimed at expanding electricity generation without placing additional financial pressure on the state. Current output from the participating firms stands at about 60 megawatts, with plans to increase capacity to between 200MW and 400MW within the next few years.
Several key facilities are expected to benefit, including Lagos State University Teaching Hospital and other critical infrastructure. The Akute plant, which had remained inactive for years, is now being upgraded to serve nearby communities and essential utilities like the Adiyan Water Works.
On the Island axis, power projects managed by Viathan Engineering are set to support government buildings and health institutions, including Lagos Island General Hospital.
The government described the agreement as a practical move to improve daily life for residents through more reliable electricity, while industry players say it signals growing investor confidence in Lagos’ evolving energy sector.
