Good News for Lagosians as State Govt Strikes Power Deal With 3 Firms to End Blackouts in Lagos
- The Lagos State Government has signed a Power Purchase Agreement with three firms to boost electricity supply and strengthen infrastructure
- The deal aims to increase generation capacity from about 60MW to 400MW within two to three years without additional financial strain on the state
- It will also revive dormant facilities and expand power supply to key public institutions and communities, attracting more investment into its energy sector
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Lagos State Government has entered into a landmark Power Purchase Agreement (PPA) with three electricity generation firms as part of efforts to expand energy supply and reinforce the state’s power infrastructure.
The agreement was formalised on Sunday, April 26, 2026, at Lagos House, Marina, in the presence of Governor Babajide Sanwo-Olu, while the Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, signed on behalf of the state.
Source: UGC
The partner companies—Mainland Power Limited, Akute Independent Power Plant, and Fenchurch Power Limited—are independent power producers operating within Lagos, with Fenchurch joining the collaboration as a new entrant.
Speaking after the signing, Sanwo-Olu described the deal as a people-centred initiative designed to improve living standards through more reliable electricity.
He emphasised the need for all parties to honour their commitments, noting that the agreement signals the beginning of broader reforms in the energy sector.
The governor said:
“This agreement is about the people and how easily we can solve problems. Let’s keep promises from both sides. When people benefit, life becomes easier. This marks the beginning of the reforms we are seeing in the energy sector.
"This means more reliable power for public infrastructure, better use of state resources, and a clear path to scale capacity over the next few years."
Ogunleye explained that the partnership aims to increase generation capacity while reviving underutilised assets, without imposing additional financial pressure on the state.
He disclosed that the firms currently produce about 60 megawatts (MW), with plans to scale output to between 200MW and 400MW over the next two to three years.
Recall that in 2024, the Nigerian Electricity Regulatory Commission (NERC) had transferred regulation and oversight of the Lagos electricity market to the Lagos state government.
The government earlier announced plans to transition a large number of residents from reliance on the national grid to solar-powered home systems.
Key projects and expected impact
Mainland Power Limited, which operates the Ikeja GRA plant, has an installed capacity of 8.8MW and currently delivers 5.8MW to areas spanning from Ikeja to Oshodi.
Major beneficiaries include the Lagos State University Teaching Hospital and the Lagos State Urban Renewal Agency, among other essential facilities.
The Akute Independent Power Plant, now managed by Fenchurch Power Limited, has a contracted capacity of 26MW. After being inactive for about five years, the plant is undergoing upgrades to restore operations and supply electricity to nearby communities, including the Adiyan Water Works.
Source: UGC
On the Island corridor, Viathan Engineering, operators of the Island Power Limited/Peninsula Integrated Power Project, oversee a combined capacity of 21MW—6MW in Lekki and 15MW in Marina.
The project is expected to support critical public infrastructure such as Lagos House, the deputy governor’s residence, and key healthcare facilities like the Lagos Island General Hospital.
The participating companies praised the Sanwo-Olu administration for fostering a conducive environment for infrastructure investment, adding that the agreement demonstrates Lagos’ commitment to deepening its energy market and attracting long-term capital into the sector.
Lagos government clarifies solar permit fee
Meanwhile, Legit.ng earlier reported that the Lagos state government had provided clarification on its solar installation fees and permits.
The clarification followed a viral video showing housing ministry officials asking a resident to obtain approval before installing solar panels.
The government clarified that permit and administrative fees applied only to residents of its government-owned social housing estates and not to private homeowners or tenants across the state.
Source: Legit.ng
