The Lagos State Government has signed a strategic framework agreement with the Gas Aggregator Company of Nigeria (GACN) to securaffordable gas supplies for power projects as part of its plan to generate 6,000 megawatts of electricity.
The agreement, signed in Ibeju-Lekki, is expected to provide independent power producers with access to gas at less than half the prevailing market price for gas-to-power transactions.
Governor Babajide Sanwo-Olu, represented by Deputy Governor Obafemi Hamzat, described the pact as a practical and enforceable roadmap toward reliable and affordable electricity in the state.
He said the agreement would address one of the biggest challenges facing power generation in Lagos by guaranteeing the availability of gas at competitive rates, thereby making power projects more financially viable.
Sanwo-Olu noted that the arrangement aligns with the Lagos Independent Electricity Policy and Strategic Implementation Plan as well as the THEMES Plus Agenda, which prioritises stable electricity supply for transportation, healthcare, education and economic development.
Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said Lagos currently receives about one gigawatt of electricity from the national grid against an estimated demand exceeding 6,000 megawatts, leaving a substantial supply gap that residents and businesses bridge through self-generation.
According to him, the partnership will support the development of the Clean Lagos Electricity Market by ensuring dependable gas supplies, promoting bankable power projects and strengthening energy infrastructure.
Managing Director of GACN, Chijioke Uzoho, pledged the company’s support for Lagos’ efforts to achieve sustainable energy security, noting that stable power supply is critical to the state’s role in driving national economic growth.
The agreement is expected to help reduce reliance on expensive generators, attract private investment into the electricity sector and improve power availability for households and businesses across Lagos.
