Babajide Sanwo-Olu says Lagos is preparing for the launch of its first electricity plants approved under state authority, with commercial operations expected between 2026 and early 2027.
Speaking at the BusinessDay Energy Conference, the governor represented by the Commissioner for Energy and Mineral Resources, Biodun Ogunleye said the projects mark a practical step forward under the decentralised electricity framework created by the Electricity Act 2023 and reinforced by the Lagos State Electricity Law 2024.
According to the state government, the independent power producers (IPPs) will operate within Lagos’ newly structured electricity market, targeting locations with heavy demand such as industrial zones and critical public facilities.
The development follows Lagos’ transition in 2025 from federal oversight to state-level regulation of its electricity market – a move officials describe as a first among Nigerian states.
Earlier this week, the state formalised Power Purchase Agreements and concession deals with three IPPs at Lagos House, Marina. The companies involved include Mainland Power Limited, Fenchurch Power Limited working with Aggregate Utilities Limited, and Viathan Engineering Limited.
Officials say the agreements are part of a broader plan to raise available generation capacity within the state to between 200 megawatts and 400 megawatts over the next few years.
Sanwo-Olu described electricity supply as foundational to economic productivity, healthcare delivery, industrial growth and modern urban living. He noted that Lagos businesses and households currently spend an estimated $2.7 billion each year on self-generated power – a cost he believes could be redirected into more productive areas if reliable supply is achieved.
While acknowledging issues around financing, regulation and coordination, the governor stressed that the focus has shifted from passing laws to delivering results on the ground.
With the first state-licensed IPP nearing take-off, Lagos is positioning itself as a test case for how subnational governments can drive power sector reform and expand electricity access beyond the national grid.
