The Lagos State Government has signed three new power purchase agreements aimed at improving electricity supply across key public facilities, introducing a strict “no power, no pay” policy to ensure accountability in energy delivery.
Governor Babajide Sanwo-Olu disclosed this on Sunday, stating that the agreements were concluded at Lagos House, Marina, as part of broader efforts to fix persistent gaps in the state’s power sector.
According to the governor, the new deals are structured to build on existing capacity while addressing inefficiencies that have hindered reliable electricity supply.
Under the arrangement, power generation and distribution responsibilities have been allocated to different firms based on specific infrastructure needs.
Fenchurch Power will supply electricity to major water facilities in Adiyan and Iju, while Mainland Power will continue servicing areas such as Ikeja, Oshodi, and Anthony, with plans for further expansion.
Similarly, Viathan has been tasked with maintaining stable electricity supply to critical facilities on Lagos Island, alongside efforts to strengthen its integration into the wider distribution network.
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Sanwo-Olu explained that the agreements have been revised to reflect current realities in Nigeria’s power sector, particularly with the introduction of a payment model tied strictly to performance.
“We will no longer pay for power that is not delivered,” the governor said, emphasizing that all payments will now be based on verified, metered electricity supply.
He noted that the new policy is designed to eliminate waste, improve cost efficiency, and ensure that public funds are spent only on actual energy consumed.
The governor expressed optimism that the initiative would significantly enhance power reliability for essential infrastructure, while also creating a framework for scaling electricity capacity in the coming years.
Analysts say the move signals a shift toward more performance-driven energy contracts in Lagos, as state authorities seek sustainable solutions to longstanding power challenges.