Lagos Signs Three PPAs to Boost Power Supply

The Lagos State Government signed three Power Purchase Agreements on Sunday with independent power producers to bolster electricity supply for critical infrastructure and advance energy reforms. The ceremony took place at Lagos House in Marina and was witnessed by Governor Babajide Sanwo-Olu, with Commissioner for Energy and Mineral Resources Biodun Ogunleye signing on behalf of the state.

The agreements involve Fenchurch Power Limited, Mainland Power Limited, and Viathan Engineering Limited, marking a strategic shift toward a competitive, market-driven electricity framework. Officials described the move as a way to revitalize dormant assets, enhance reliability, and reduce costs by tying payments to actual metered deliveries rather than outdated structures like take-or-pay or deemed energy provisions.

Fenchurch Power's deal is a new contract focused on powering major water facilities in Adiyan and Iju. It centers on the Akute Independent Power Plant, which has been inactive for about five years and holds a contracted capacity of 26 megawatts. The plant is now undergoing rehabilitation to resume operations and support surrounding communities, including the Adiyan Water Works.