Lagos State Deputy Governor, Dr. Kadri Obafemi Hamzat, represented Governor Babajide Olusola Sanwo-Olu at the Industry Strategic Session of the 2026 Gas Aggregator Company Nigeria (GACN)/Lagos State Government Gas Commercialization Stakeholders Engagement and the signing of the GACN-LAISO Commercialization Collaboration Agreement at Lakowe Resort, Ibeju-Lekki, Lagos State, on Tuesday.
By Our Reporter
Lagos State Government on Tuesday signed a Strategic Framework for Gas Supply and Energy Development with the Gas Aggregator Company Nigeria Ltd/Gte (GACN), ostensibly to meet the planned 6000 megawatts 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.
Governor Babajide Olusola Sanwo-Olu described the agreement as more than the signing of a document, saying that it rather 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.
Speaking at the event held at Lakowe Resort, Ibeju-Lekki, Governor Sanwo-Olu, who he was represented by his Deputy, Dr. Kadri Obafemi Hamzat, noted that the framework aligns 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 him, 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.
"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,” he said.
Sanwo-Olu explained that the framework removes 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.
The added that the initiative would support the decentralized 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 further 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.
"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,” Sanwo-Olu concluded.
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 aimed at addressing Lagos’ significant power deficit.
According to Ogunleye, Lagos currently receives about one Gigawatt of electricity from the national grid against an estimated demand of more than six G, leaving a gap that is largely met through self-generation by residents and businesses.
"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," the commissioner stated.
Assuring stakeholders of the project's feasibility and long-term sustainability, Managing Director, Gas Aggregator Company Nigeria Ltd/Gte (GACN), Mr. Chijioke Uszoho, stated that the company remained fully committed to achieving its established goals and objectives.
"The place of Lagos in national development cannot be overemphasized, especially when it comes to continuity in governance. As partners, we are committed to the achievement of sustainable energy supply in the state," said Uszoho.
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