The Lagos State Government has signed a strategic agreement with the Gas Aggregator Company Nigeria Ltd/Gte (GACN) to secure cheaper gas for power projects, a move aimed at accelerating its plan to deliver 6,000 megawatts of electricity across the state.
The framework agreement was signed at Lakowe Resort in Ibeju-Lekki and is expected to provide a stable gas supply for independent power projects at less than half the prevailing market gas-to-power price.
Governor Babajide Sanwo-Olu, represented by Deputy Governor Obafemi Hamzat, described the agreement as a practical roadmap for affordable and reliable electricity.
According to him, the framework will pave the way for definitive gas supply and offtake agreements while addressing one of the biggest challenges facing power generation in Lagos: the availability and cost of gas.
“What we celebrate today is more than a document being signed. It is a commitment, a strategic, practical and enforceable plan, that secures gas for Lagos at a price point that is less than half of current market gas-to-power pricing,” he said.
Sanwo-Olu added that the agreement would give Independent Power Producers (IPPs) greater confidence to develop and operate power projects by guaranteeing access to dependable fuel at affordable rates.
The governor said the initiative would strengthen the decentralised electricity market being developed by the state, attract private investment, deepen competition, and bring power closer to homes, schools, hospitals, and businesses.
He noted that the partnership aligns with the Lagos Independent Electricity Policy and Strategic Implementation Plan (LIEP-SIP) and the THEMES Plus Agenda, both of which place reliable electricity at the centre of transportation, healthcare, education, and economic growth.
“Energy is central to our development agenda. Transport, health, education and economic competitiveness all depend on reliable power, and 24/7 supply cannot be compromised,” Sanwo-Olu said.
Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the agreement would be critical to the development of the state’s Clean Lagos Electricity Market (CLEM).
He disclosed that Lagos currently receives about 1 gigawatt of electricity from the national grid against an estimated demand of more than 6,000MW, leaving a massive supply gap that is largely filled through self-generation by households and businesses.
“Reliable and competitively priced gas remains essential to achieving the objectives of the Clean Lagos Electricity Market. This framework will help support bankable power projects and strengthen energy infrastructure across the state,” Ogunleye said.
Chijioke Uzoho, Managing Director of GACN, assured stakeholders of the project’s feasibility and long-term sustainability.
“The place of Lagos in national development cannot be overemphasised. As partners, we are committed to supporting the achievement of sustainable energy supply in the state,” Uzoho said.
