Lagos Power Breakthrough: Sanwo-Olu Signs Deals to Boost Electricity to 400MW, Reduce Blackouts

Follow

( 0 Followers )

X

Follow

E-mail : *

Follow Unfollow

The Babajide Sanwo-Olu-led Lagos State Government has taken a major step toward addressing persistent electricity shortages by signing fresh Power Purchase Agreements (PPAs) with key independent power producers.

The agreements, signed at Lagos House, Marina, are designed to scale embedded power generation in Lagos from the current 60 megawatts (MW) to between 200MW and 400MW within the next two to three years—offering renewed hope for improved power stability in Nigeria’s commercial hub.

Speaking at the signing ceremony, Governor Sanwo-Olu described the initiative as a strategic milestone in the state’s ongoing power sector reforms. He emphasized that the revised agreements now ensure that payments are tied strictly to actual electricity delivered, a move aimed at eliminating inefficiencies and ensuring value for money.

“This is designed to build on existing capacity and fix what has not been working,” the governor stated, noting that the agreements align with the Lagos State Electricity Law 2024 and the Electricity Act.

The Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, signed on behalf of the state government. The agreements involve Mainland Power Limited, Fenchurch Power Limited (in partnership with Aggregate Utilities Limited), and Viathan Engineering Limited, with Fenchurch Power joining as a new entrant.

What the New Power Deals Mean for Lagos

Under the agreements:

• Mainland Power will continue supplying areas including Ikeja, Oshodi, and Anthony, with expanded coverage expected.
• Fenchurch Power will support major water facilities in Adiyan and Iju.
• Viathan Engineering will maintain and enhance supply to critical infrastructure on Lagos Island.

The state government estimates that Lagos requires about 6,000MW to meet its energy needs, while the national grid currently supplies less than 2,000MW. The new PPAs are expected to bridge part of this gap through private sector-driven investments.

Energy stakeholders say the development signals a shift toward decentralized electricity generation, reducing reliance on the national grid while improving reliability for homes, businesses, and essential services.

Officials also believe the agreements will attract more investors into the power sector and significantly reduce the frequency of blackouts across the state.

“This signing marks another major milestone in our commitment to building a resilient and self-sustaining electricity market for Lagos,” Governor Sanwo-Olu added.

With implementation set to begin immediately, residents and businesses can expect gradual improvements in electricity supply as the projects scale up over the coming years.