Sanwo-Olu says agreements tie payments to actual supply, target improved reliability across mainland and island….
The Lagos State Government has signed fresh power purchase agreements with three energy firms in a move aimed at improving electricity supply to critical public infrastructure across the state.
Governor Babajide Sanwo-Olu disclosed this in a post on X, noting that the agreements were finalised on Sunday at Lagos House, Marina, as part of broader efforts to fix gaps in the state’s power system.
Under the new arrangements, Fenchurch Power will supply electricity to major water facilities in Adiyan and Iju, while Mainland Power will continue serving areas such as Ikeja, Oshodi, and Anthony, with plans for expansion. On the Island, Viathan has been tasked with maintaining stable electricity for key infrastructure while strengthening integration with the distribution network.
Sanwo-Olu said the agreements have been restructured to reflect current realities in the power market, introducing stricter accountability measures. Notably, the state will now pay only for electricity that is actually delivered and metered.
“Payments are now tied to actual supply, which helps us cut waste and manage public funds more efficiently,” the governor stated.
He added that the deals are expected to deliver more consistent power to essential services, optimise resource use, and create a foundation for scaling electricity capacity in the coming years.
The development builds on earlier reforms in the sector, including the signing of the Lagos Electricity Bill 2024 in December 2024. The law is designed to tackle longstanding energy challenges, enable the creation of an additional power grid, and ultimately reduce persistent blackouts across the state.
With these new agreements in place, the Lagos government is positioning itself to take greater control of its electricity supply, focusing on reliability, efficiency, and long-term growth.
