The Lagos State Government has executed Power Purchase Agreements and concession deals with three independent power producers in a move to increase electricity generation capacity to between 200MW and 400MW over the coming years.

The agreements were signed at Lagos House, Marina, with Mainland Power Limited, Fenchurch Power Limited in partnership with Aggregate Utilities Limited, and Viathan Engineering Limited.

State officials said the deals cover three of the four IPPs under its embedded power generation initiative and are designed to advance Lagos’ drive toward a more reliable and self-sustaining electricity market.

Governor Babajide Olusola Sanwo-Olu, who oversaw the signing ceremony, described the move as a significant milestone in the state’s wider energy reform programme.

He said the agreements underscore Lagos’ commitment to enhancing electricity supply for households, businesses, and critical public infrastructure.

“These partnerships represent our determination to power homes, industries and critical infrastructure with reliability and efficiency.

“We are laying a strong foundation for a future where Lagos has the capacity and independence required for sustainable development,” he said.

The Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the agreements were restructured to reflect Lagos’ evolving electricity market framework.

“From a current capacity of less than 60MW, we see these plants scale up to over 200-400MW in 2-3 years without draining the treasury but competing in the marketplace to provide sustainable energy to our citizens,” he stated.

In recent years, Lagos State has intensified efforts to develop embedded generation projects aimed at reducing reliance on the national grid and improving power reliability across major economic corridors.

The government has rolled out several independent power projects to supply electricity to industrial, commercial, and residential clusters.