The Lagos State Government has signed a strategic fagreement with the Gas Aggregator Company Nig. Ltd. (GACN) to achieve its six gigawatts electricity generation target.
The state Gov. Babajide Sanwo-Olu said the agreement was aimed at boosting power supply in the state.
Sanwo-Olu said that agreement was also expected to secure gas for power projects at less than half of the prevailing market gas-to-power price.
The governor was represented by his Deputy, Dr Obafemi Hamzat, at the event held at Lakowe Resort, Ibeju-Lekki, Lagos on Tuesday.
He said the initiative would ensure affordable and reliable energy for Lagos residents.
He said the agreement represented a strategic, practical and enforceable plan that would lay the foundation for definitive gas supply and offtake arrangements.
“What we celebrate today is more than a document being signed.
“It is a strategic commitment, a practical and enforceable plan that lays the groundwork for definitive gas supply and offtake agreements to follow.
“It secures gas for Lagos at a price point that is less than half of current general market gas-to-power pricing,” he said.
The governor noted that the framework aligned with the Lagos Independent Electricity Policy and Strategic Implementation Plan and the state’s THEMES Plus Agenda.
He stressed that reliable electricity remained critical to transport, healthcare, education and economic growth.
Sanwo-Olu added that the agreement addressed the persistent challenge of gas availability and cost for power generation.
He said the initiative would remove a major constraint facing Independent Power Producers by guaranteeing access to dependable and affordable fuel, thereby boosting investor confidence in power projects.
He added that it would support the state’s decentralised electricity market, encourage private sector investment, increase competition and bring power closer to homes, schools, hospitals and economic clusters.
“Energy is central to our development agenda.
“Transport, health, education and economic competitiveness, all depend on reliable power, and 24-hour daily power supply cannot be compromised,” he said.
Earlier, the state Commissioner for Energy and Mineral Resources, Mr Biodun Ogunleye, said the partnership would play a critical role in developing the Clean Lagos Electricity Market.
According to Ogunleye, Lagos currently receives about one gigawatt of electricity from the national grid against an estimated demand of over six gigawatts.
He said that this left a significant deficit largely filled through self-generation.
“In Lagos, reliable and competitively-priced gas remains essential to achieving the objectives of the Clean Lagos Electricity Market.
“Under this framework, we will work with GACN and other stakeholders to ensure dependable gas supply and support bankable power projects.
“The initiative will also strengthen energy infrastructure and create a more sustainable electricity market capable of powering homes, industries and commercial activities across the state,” he said.
The Managing Director of GACN, Mr Chijioke Uzoho, assured stakeholders of the project’s feasibility and long-term sustainability.
“The place of Lagos in national development cannot be over-emphasised, especially when it comes to continuity in governance.
“As partners, we are committed to the achievement of sustainable energy supply in the state,” he said.
