The Lagos State Government has signed Power Purchase Agreements with three electricity generating companies in a major push to boost energy supply across Nigeria’s commercial hub.
The partner firms—Mainland Power Limited, Fenchurch Power Limited, and Viathan Engineering—represent three of the four Independent Power Plants operating in Lagos.
While Mainland Power and the Akute plant are existing operators, Fenchurch joins as a new partner to revive and expand capacity.
Speaking after the signing, Governor Babajide Sanwo-Olu urged strict adherence to the agreements.
He stressed commitment and professionalism to ensure the projects deliver tangible benefits to residents.
“This agreement is about the people and how easily we can solve problems.
“Let’s keep promises from both sides. When people benefit, it makes life easier.
“This is the beginning of reforms we are seeing in the energy sector,” he said.
The Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, signed the agreements on behalf of the state at Lagos House, Marina.
Ogunleye described the deal as a strategic step to ramp up generation and revive dormant assets, revealing plans to significantly scale capacity in the near term.
“The three companies already have a combined generating capacity of 60MW.
“With this agreement, they can scale up to between 200 and 400MW within two to three years—without straining public finances—while competing to deliver sustainable energy,” he said.
Roles of companies
He detailed each plant’s role: Mainland Power operates the Ikeja GRA facility, supplying areas from Ikeja to Oshodi and key institutions such as Lagos State University Teaching Hospital.
“Fenchurch is taking over the Akute Independent Power Plant, which is being rehabilitated after years of inactivity to serve surrounding communities and the Adiyan Water Works.
Viathan Engineering manages the Island Power Limited/Peninsula Integrated Power Project, with plants in Lekki and Marina supplying critical infrastructure, including government residences and major health facilities like Lagos Island General Hospital.
The companies commended the administration for creating an enabling environment for investment.
They noted that the initiative sends a strong signal about Lagos’ commitment to strengthening its energy ecosystem.
The agreements mark a significant milestone in Lagos’ power sector reforms, with the state targeting a fourfold increase in electricity generation within three years—offering hope of more stable power for residents and businesses.
