On Saturday, Lagos State toed the line of Abia State government in becoming independent power producing state.
Lagos state government signed power purchase agreements with three independent electricity producers, paving the way for a significant increase in its captive energy supply from about 60 megawatts to up to 400 megawatts in three years.
The signing event, which formalized agreements with Mainland Power Limited, Fenchurch Power Limited, and Viathan Engineering Limited—a combination of established partners and a newcomer taking on one of the state's previously inactive power assets—was presided over by Lagos State Governor Babajide Sanwo-Olu.
The accords represent Lagos's most ambitious attempt to avoid Nigeria's persistently unstable national grid, which has long limited business activity throughout Africa's largest city by GDP.
The state is stepping up its decentralized energy strategy, which is based on specialized plants supporting public infrastructure, instead of waiting for decades-old federal power changes.
This agreement is about the people and how easily we can solve problems,” Sanwo-Olu said after the signing. “This marks the beginning of the reforms we are seeing in the energy sector.”
The Akute Independent Power Plant, which has been idle for five years and was recently given to Fenchurch Power Limited under a concession deal, lies at the heart of the expansion.
Currently, 5.8 megawatts are delivered to a corridor that runs from Ikeja to Oshodi by Mainland Power Limited, which runs the 8.8 megawatt Ikeja GRA plant on a renewed 10-year contract. Lagos State Urban Renewal Agency and Lagos State University Teaching Hospital are important clients.
Viathan Engineering manages a total of 21 megawatts across plants in Lekki and Marina on Lagos Island, providing power to the State Government House, the deputy governor's house, Lagos Island General Hospital, and Lagos Island Maternity Hospital.
According to Lagos Commissioner for Energy and Mineral Resources Biodun Ogunleye, the agreements were designed to expand generation and revitalize stranded assets without straining state coffers. According to him, as rehabilitation and modifications continue, total output is anticipated to reach between 200 and 400 megawatts over the next two to three years.
