Lagos signs power deals, targets 400MW in three years

The Lagos State Government on Sunday signed Power Purchase Agreements (PPAs) and concession arrangements with key Independent Power Producers (IPPs).

The ceremony, presided over by Governor Babajide Sanwo-Olu at Lagos House, Marina, formalised agreements with Mainland Power Limited, Fenchurch Power Limited (in partnership with Aggregate Utilities Limited), and Viathan Engineering Limited.

The state government said it aims to generate 400MW in three years, as against the current 60MW.

The agreements covered three out of the four IPPs deployed by the state to meet its growing electricity demands.

Sanwo-Olu described the agreements as a defining step in Lagos State’s journey toward energy security and economic growth.

“Today’s signing marks another major milestone in our commitment to building a resilient and self-sustaining electricity market for Lagos.

“These partnerships go beyond contracts; they represent our determination to power homes, industries, and critical infrastructure with reliability and efficiency. We are laying a strong foundation for a future where Lagos has the capacity, stability, and independence required to drive sustainable development and prosperity,” the governor stated.

In his remarks, the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, noted that the agreements had been strategically restructured to align with the evolving electricity market in Lagos.

According to him, Lagos is projecting a significant scale-up in generation capacity from less than 60MW currently to between 200MW and 400MW within the next two to three years.

Earlier, the Chief Executive Officers of the respective companies—Mr. Obiora Nwizu, Mr. Olufemi Bakare of Fenchurch Power Limited, and Mr. Oluwaseun Sowunmi—commended the Sanwo-Olu administration for the reforms in the power sector.