By Ayodele Oni
Lagos state government will henceforth pay for only consumed electricity under a new agreement signed by the state government.
The state government has signed three new power purchase agreements aimed at improving electricity supply across key public infrastructure, alongside a revised payment model that ensures the state only pays for electricity actually delivered.
Governor Babajide Sanwo-Olu disclosed this in a statement on Sunday, after witnessing the signing ceremony at Lagos House, Marina, describing the initiative as part of broader efforts to close existing gaps in power delivery and improve reliability across the state’s facilities.
According to him, the agreements are designed to build on existing generation and distribution capacity, while addressing inefficiencies in the current arrangement.
“Today at Lagos House, Marina, I witnessed the signing of three power purchase agreements designed to build on existing capacity and address what has not been working,” the governor said.
Under the new structure, different power providers have been assigned specific infrastructure clusters.
Fenchurch Power will supply electricity to major water facilities in Adiyan and Iju, Mainland Power will continue serving Ikeja, Oshodi, and Anthony, with provisions for future expansion.
Viathan will maintain power supply to key facilities on Lagos Island while deepening integration with the distribution network.
Sanwo-Olu explained that the agreements were updated to reflect current realities in the electricity market, with a stronger emphasis on accountability and performance-based payment.
“We have updated these agreements to reflect current market realities. We will no longer pay for power that is not delivered.
“Payments are now tied to actual, metered supply, helping us reduce waste and manage costs more effectively,” he added.
The governor emphasized that the policy is expected to improve the reliability of electricity supply to public infrastructure, ensure more efficient use of state resources, and provide a framework for future expansion of power capacity in the state.
“This means more reliable power for public infrastructure, better use of state resources, and a clear path to scale capacity over the next few years,” the governor noted.
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