Amanze Chinonye
The Lagos State Government has signed new Power Purchase Agreements (PPAs) with three Independent Power Producers as part of efforts to strengthen electricity supply to critical infrastructure and expand generation capacity across the state, Prime Business Africa reports.
The agreements were executed by the state through the Office of Public-Private Partnerships and the Ministry of Energy and Mineral Resources, with Mainland Power Limited, Fenchurch Nigeria Limited, and Viathan Engineering Limited.
Governor Babajide Sanwo-Olu witnessed the signing ceremony at Lagos House, Marina, describing the agreements as a strategic step to improve power delivery and address longstanding inefficiencies in the state’s electricity value chain.
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The process was led by the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, alongside the Special Adviser, Office of Public-Private Partnerships, Bukola Odoe.
Officials said the initiative reflects Lagos’ deliberate shift toward decentralised power delivery, aimed at bringing electricity closer to demand centres while safeguarding essential public services.
Akute Plant Concession
A key component of the agreements is the concession of the Akute Independent Power Plant to Fenchurch Power Limited in partnership with Aggregate Utilities Limited.
The plant, with a base contracted capacity of 26 megawatts, has remained dormant for about five years but will now undergo full rehabilitation and upgrade under a long-term operational arrangement.
Upon completion, the facility is expected to supply electricity to surrounding communities and support major water infrastructure, including the Adiyan Water Works managed by the Lagos State Water Corporation.
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Mainland Power Renewal
In Ikeja GRA, Lagos renewed its PPA with Mainland Power Limited. The plant has an installed capacity of 8.8MW and a contracted capacity of 5.8MW, supplying electricity across Ikeja, Oshodi, and Anthony.
It also powers critical public infrastructure such as the Lagos State University Teaching Hospital, LASURA, and key substations within the state’s power network.
Officials said the renewal secures stable electricity supply from the facility for the next 10 years.
Island Power Operations
On Lagos Island, Viathan Engineering Limited will continue operations under the Island Power Limited / Peninsula Integrated Power Project.
The project has a combined installed capacity of 21MW – 6MW in Lekki and 15MW in Marina and delivers electricity through hybrid and dual-fuel systems.
It supplies power to major government assets, including the State House, the Deputy Governor’s residence, and key health facilities such as Lagos Island General Hospital and Lagos Island Maternity Hospital, as well as other strategic institutions and commercial hubs.
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Sanwo-Olu: Payments Now Tied to Delivery
Speaking after the signing, Sanwo-Olu said the agreements have been updated to reflect current market realities, introducing a stricter performance-based payment structure.
“We will no longer pay for power that is not delivered. Payments are now tied to actual, metered supply, helping us reduce waste and manage costs more effectively,” the governor said.
He added that Fenchurch Power will support major water facilities in Adiyan and Iju, while Mainland Power will continue serving Ikeja, Oshodi, and Anthony with room for expansion. Viathan, he said, will maintain stable supply to key facilities on Lagos Island as the state strengthens integration with the distribution network.
According to the governor, the new framework is expected to improve reliability of electricity to public infrastructure, ensure better utilisation of state resources, and provide a pathway for scaling generation capacity in the coming years.
The agreements form part of Lagos’ broader electricity reform agenda, aimed at reducing dependence on the national grid and building a more resilient, market-driven power sector.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
