The Lagos State Government has introduced a “no power, no pay” policy as it signed three power purchase agreements to improve electricity supply and ensure it only pays for energy actually delivered to public facilities.
A statement issued by the Lagos State Governor, Babajide Sanwo-Olu on Sunday, said the agreements were signed as part of efforts to address gaps in power delivery and ensure more reliable supply in the state.
“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 arrangement, different power firms have been assigned to support specific areas and infrastructure. Fenchurch Power will supply electricity to key water facilities in Adiyan and Iju, while Mainland Power will keep providing power to Ikeja, Oshodi, and Anthony, with plans to expand its coverage. Viathan will continue to ensure steady electricity for major facilities on the Island, alongside efforts to better integrate its supply into the distribution network.
“Fenchurch Power will support our major water facilities in Adiyan and Iju. Mainland Power will continue serving Ikeja, Oshodi, and Anthony, with room for expansion. Viathan will maintain stable power supply to key facilities on the Island as we strengthen its integration with the distribution network,” he added.
The governor also stated that the agreements have been reviewed to reflect current realities in the power sector, with a new payment structure introduced to ensure accountability.
“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 stated.
According to the governor, the move is expected to improve power reliability for public infrastructure, ensure better use of state resources, and support future expansion of electricity capacity.
“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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