The Lagos State Government has signed Power Purchase Agreements (PPA) with three energy companies — Fenchurch Power, Mainland Power, and Viathan — to generate about 60MW of electricity as part of efforts to strengthen power supply across the state.
The agreements were signed at Lagos House, Marina, and are expected to serve as a foundation for a broader expansion plan targeting between 200MW and 400MW of generation capacity within the next two to three years.
Governor Babajide Sanwo-Olu said the initiative is aligned with the Lagos State Electricity Law 2024 and the Nigerian Electricity Act, describing it as a shift toward a more efficient, market-driven electricity system.
According to the state government, the deals were executed by the Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, alongside representatives of the three firms.
Sanwo-Olu explained that the new framework is designed to ensure the government only pays for electricity that is actually delivered, a move aimed at reducing waste and improving cost efficiency.
“We will no longer pay for power that is not delivered,” he said, adding that payments will now be tied strictly to metered supply.
Under the agreements, Fenchurch Power will support key water infrastructure at Adiyan and Iju, while Mainland Power will continue supplying electricity to areas including Ikeja, Oshodi, and Anthony, with potential for expansion. Viathan will focus on maintaining power supply to critical facilities on Lagos Island.
Commissioner Abiodun Ogunleye said the arrangement is part of a broader strategy to revive dormant assets and expand generation capacity through private-sector investment rather than direct public spending.
He noted that the three companies currently operate a combined installed capacity of about 60MW, with plans to significantly scale up output over the coming years.
Mainland Power, with an installed capacity of 8.8MW in the Ikeja GRA axis, currently supplies about 5.8MW to key public institutions, including the Lagos State University Teaching Hospital and other substations.
Fenchurch Power is also rehabilitating the Akute Independent Power Plant, which has a contracted capacity of 26MW and had been inactive for about five years. The facility is expected to serve surrounding communities, including Adiyan Water Works.
Viathan Engineering will oversee power supply along the Island and Lekki corridor under the Peninsula Integrated Power Project, which has a combined installed capacity of 21MW — 6MW in Lekki and 15MW in Marina.
The project is expected to support major public institutions, including Lagos Government House, Lagos Island General Hospital, and Lagos Island Maternity Hospital.
State officials say the agreements mark a step toward improving reliability in electricity supply while strengthening infrastructure across key government and health facilities.
