Bennett Oghifo

Lagos State Government, yesterday, signed a Strategic Framework for Gas Supply and Energy Development with Gas Aggregator Company Nigeria Ltd/Gte (GACN), to meet the planned 6000 megawatts electricity for Lagos State.

The landmark agreement is expected to boost electricity generation and secure gas for power projects at less than half the prevailing market gas-to-power price.

The governor of Lagos State, Mr. Babajide Sanwo-Olu, described the agreement as more than the signing of a document, saying it represents a strategic, practical and enforceable plan that lays the foundation for definitive gas supply and offtake agreements aimed at ensuring affordable and reliable energy for Lagos.

The event held at Lakowe Resort, Ibeju-Lekki, where he was represented by his deputy, Dr. Kadri Obafemi Hamzat.

The governor said the framework aligned with the Lagos Independent Electricity Policy and Strategic Implementation Plan (LIEP-SIP) as well as the state’s THEMES Plus Agenda, adding that reliable electricity remains critical to transportation, healthcare, education, and economic growth.

According to the governor, the agreement addresses one of the most persistent obstacles to dependable and affordable electricity in Lagos – the availability and cost of gas for power generation.

He said, “What we celebrate today is more than a document being signed. It is a commitment — a strategic, 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.”

Sanwo-Olu explained that the framework removed the major challenge confronting Independent Power Producers (IPPs) in the state by guaranteeing access to dependable fuel at affordable rates, thereby enabling them to develop and operate power projects with greater confidence.

He added that the initiative would support the decentralised electricity market being developed by the state government, encourage private sector investment, increase competition, and bring electricity closer to homes, schools, hospitals, and economic clusters across Lagos.

Sanwo-Olu stated that the collaboration would reduce the cost of power, strengthen energy security, and improve the state’s capacity to provide sustained and high-quality electricity supply to residents and businesses.

He said, “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.”

Earlier in his welcome address, Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, stated that the partnership was expected to play a critical role in the development of the Clean Lagos Electricity Market (CLEM), adding that the state government’s initiative aims at addressing Lagos’ significant power deficit.

According to Ogunleye, Lagos currently receives about one gigawatt (GW) of electricity from the national grid against an estimated demand of more than six GW, leaving a gap that is largely met through self-generation by residents and businesses.

Ogunleye said, “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, support bankable power projects, strengthen energy infrastructure and create a more sustainable electricity market capable of powering homes, industries and commercial activities across the state.”

Assuring the feasibility and sustainability of the project, Managing Director of GACN, Mr. Chijioke Uszoho, stated that his company was committed to achieving the set down goals.

Uszoho said, “The place of Lagos in national development cannot be overemphasised, especially, when it comes to continuity in governance.

“Both partners are committed to the achievement of sustainable energy supply in the state.”