The Lagos State Government has signed Power Purchase Agreements (PPA) with three firms- Fenchurch Power, Mainland Power, and Viathan for about 60MW of generation.
A statement by Babajide Sanwo-Olu on Sunday noted that plans to scale capacity to 200–400MW within two to three years through market-driven investments under the Lagos State Electricity Law 2024, aligned with the Nigerian Electricity Act.
He noted that the agreements were executed on behalf of the state by Abiodun Ogunleye alongside representatives of the three firms at Lagos House, Marina.
Signing of three power purchase agreements is designed to build on existing capacity and address what has not been working, according to him.
He said, Fenchurch Power will support our major water facilities in Adiyan and Iju, while Mainland Power will continue serving Ikeja, Oshodi, and Anthony, with room for expansion.
“Viathan will maintain stable power supply to key facilities on the Island as we strengthen its integration with the distribution network.
The Governor insisted that the government will no longer pay for power that is not delivered, explaining that the State Government has updated those agreements to reflect current market realities.
Payments are now tied to actual, metered supply, helping the government to reduce waste and manage costs more effectively.
He emphasised that the agreement means more reliable power for public infrastructure, better use of state resources, and a clear path to scale capacity over the next few years.
Biodun ogunleye, the Commissioner for Energy and Mineral Resources, in his remarks, stated that development is an attempt to expand generation and revive dormant assets to support a sustainable energy supply.
He noted that the power companies at the moment operate a combined generating capacity of about 60MW and plan to scale up to between 200MW and 400MW within two to three years through market-based investments rather than public spending.
