By Ayomide Otitoju
The Lagos State Government has signed Power Purchase Agreements (PPAs) with three energy firms—Fenchurch Power, Mainland Power, and Viathan Engineering—to generate about 60MW of electricity as part of efforts to improve power supply across the state.
The agreements were signed at Lagos House, Marina, with state officials led by Abiodun Ogunleye and representatives of the three firms. Governor Babajide Sanwo-Olu said the deals align with the Lagos State Electricity Law 2024 and the Nigerian Electricity Act, with plans to scale generation capacity to between 200MW and 400MW within the next two to three years through market-driven investments.
According to the governor, the new framework ensures that government payments will now be tied strictly to metered electricity actually delivered, replacing previous arrangements that allowed payments for unconsumed power.
Under the agreements, Fenchurch Power will support key water infrastructure at Adiyan and Iju, while Mainland Power will continue supplying electricity to areas including Ikeja, Oshodi, and Anthony, with expansion capacity. Viathan Engineering will serve facilities along the Island and Lekki corridor, including government and health institutions.
Ogunleye said the initiative is designed to expand generation capacity and revive dormant assets to strengthen sustainable energy supply in the state. He disclosed that the three operators currently have a combined capacity of about 60MW, with expansion plans expected to significantly increase output in the coming years.
He added that Mainland Power operates an 8.8MW facility in the Ikeja GRA axis with contracted supply to key public institutions, while Fenchurch Power is rehabilitating the formerly dormant Akute Independent Power Plant, with a contracted capacity of 26MW.
Viathan Engineering, he noted, will manage the Peninsula Integrated Power Project, with installed capacity across Lekki and Marina expected to support critical facilities such as the Lagos Government House, Lagos Island General Hospital, and Lagos Island Maternity Hospital.
