Sanwo-Olu Signs New Power Deals to Boost Lagos Electricity to 400MW, Ends Payment for Unmet Supply

Lagos State is moving to overhaul its power infrastructure with new agreements aimed at scaling electricity supply and improving reliability across key public facilities.

Governor Babajide Sanwo-Olu announced that the state has signed three new power purchase agreements designed to strengthen generation capacity and fix long-standing supply gaps under the Lagos electricity framework.

The agreements, executed at Lagos House, Marina, are part of a broader strategy under the Lagos State Electricity Law 2024 and aligned with the national electricity reform agenda.

According to the governor, the initiative will help scale power generation in Lagos from the current baseline to between 200MW and 400MW within the next two to three years, driven by private sector investment rather than direct public funding.

He explained that the deal also introduces a major policy shift: the state will no longer pay for electricity that is not delivered, with payments now strictly tied to metered supply.

That move, he said, is expected to reduce waste, improve accountability, and ensure better use of public funds in the state’s energy management system.

Under the new arrangement, Fenchurch Power will supply electricity to critical water infrastructure, including Adiyan and Iju water facilities, while Mainland Power will continue servicing key districts such as Ikeja, Oshodi, and Anthony, with plans for expansion.

Viathan Engineering will focus on the Island and Lekki corridor, providing power support to major government and health institutions, including Lagos Island General Hospital and Lagos Island Maternity Hospital.

Commissioner for Energy and Mineral Resources Biodun Ogunleye said the three operators currently generate about 60MW combined but are expected to significantly expand capacity through rehabilitation and investment.

He noted that the Akute Independent Power Plant, now operated by Fenchurch Power, is being revived after years of dormancy and will serve surrounding communities, including the Adiyan Water Works.

Similarly, Mainland Power’s installed capacity of 8.8MW in the Ikeja GRA axis will continue supplying strategic public infrastructure such as Lagos State University Teaching Hospital and nearby substations.

Officials say the reforms are aimed at building a more stable, market-driven electricity system capable of supporting Lagos’ growing population and economic activity.