Lagos State Government on Tuesday signed a Strategic Framework for Gas Supply and Energy Development with Gas Aggregator Company Nigeria Ltd/Gte, GACN, to meet its planned 6,000 megawatts electricity target. Governor Babajide Sanwo-Olu, represented by Deputy Governor Dr. Kadri Obafemi Hamzat at Lakowe Resort, Ibeju-Lekki, said the agreement is a strategic, practical and enforceable plan that lays groundwork for definitive gas supply and offtake deals. The framework is expected to secure gas for power projects at less than half the prevailing market gas-to-power price and aligns with the Lagos Independent Electricity Policy and THEMES Plus Agenda.
Sanwo-Olu said the deal tackles one of the biggest obstacles to reliable electricity in Lagos: gas availability and cost. By guaranteeing Independent Power Producers access to dependable, affordable fuel, the framework removes a major challenge for IPPs and enables them to develop projects with greater confidence. He added that it will support Lagos’ decentralized electricity market, boost private sector investment, increase competition, and bring power closer to homes, schools, hospitals and business clusters. “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,” he said.
Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, noted that Lagos currently gets about 1GW from the national grid against over 6GW demand, with the gap filled by self-generation. The partnership will be critical to developing the Clean Lagos Electricity Market, CLEM, by ensuring dependable gas supply and bankable power projects. GACN Managing Director, Mr. Chijioke Uzoho, assured stakeholders of the company’s commitment, saying Lagos’ role in national development makes continuity in energy supply crucial.
