LAGOS SIGNS GAS SUPPLY DEAL TO DRIVE 6,000MW ELECTRICITY TARGET
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By; Ganiyat Sunmola
The Lagos State Government has signed a Strategic Framework for Gas Supply and Energy Development with the Gas Aggregator Company Nigeria Limited/Gte (GACN) as part of efforts to achieve its ambitious target of generating 6,000 megawatts of electricity.
The agreement, signed on Tuesday at Lakowe Resort in Ibeju-Lekki, is expected to strengthen power generation in the state by guaranteeing gas supply for electricity projects at less than half the current market gas-to-power price.
Governor Babajide Sanwo-Olu described the framework as a major step towards ensuring affordable and reliable energy for residents and businesses. Represented by his deputy, Dr. Kadri Obafemi Hamzat, the governor said the initiative goes beyond the signing of an agreement and provides a practical roadmap for future gas supply and offtake arrangements.
According to him, the framework aligns with the Lagos Independent Electricity Policy and Strategic Implementation Plan (LIEP-SIP) as well as the state’s THEMES Plus Agenda, which prioritises infrastructure development and economic growth.
Sanwo-Olu noted that the agreement addresses one of the biggest challenges facing electricity generation in Lagos — the availability and cost of gas. He explained that securing gas at significantly lower prices would enable Independent Power Producers (IPPs) to develop and operate power projects more efficiently.
He added that the initiative would support the state’s emerging decentralised electricity market, encourage private sector participation, boost competition and improve access to electricity in homes, schools, hospitals and commercial hubs across Lagos.
The governor stressed that reliable electricity remains essential to transportation, healthcare, education and economic competitiveness, adding that uninterrupted power supply is critical to the state’s development agenda.
Earlier, Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the partnership would play a key role in the development of the Clean Lagos Electricity Market (CLEM), an initiative designed to bridge the state’s electricity deficit.
He disclosed that Lagos currently receives about one gigawatt of electricity from the national grid despite an estimated demand exceeding six gigawatts, forcing many residents and businesses to rely on self-generated power.
Ogunleye said the agreement would help guarantee dependable gas supply, support viable power projects, strengthen energy infrastructure and create a more sustainable electricity market capable of meeting the state’s growing energy needs.
Speaking at the event, Managing Director of Gas Aggregator Company Nigeria Ltd/Gte, Chijioke Uzoho, reaffirmed the company’s commitment to ensuring the success of the partnership.
He described Lagos as a critical driver of national development and pledged GACN’s support towards achieving sustainable and reliable energy supply in the state.
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