The Lagos State Government has introduced a “no power, no pay” policy following the signing of three new power purchase agreements aimed at improving electricity supply to public facilities.
Governor Babajide Sanwo-Olu announced the development on Sunday, stating that the agreements are part of broader efforts to address inefficiencies in power delivery and ensure the state only pays for electricity that is actually supplied.
Under the new arrangement, specific power firms have been assigned to support critical infrastructure across the state. Fenchurch Power will provide electricity to major water facilities in Adiyan and Iju. Mainland Power will continue supplying Ikeja, Oshodi, and Anthony, with plans to expand its coverage, while Viathan will maintain power supply to key facilities on Lagos Island and improve its integration with the distribution network.
Sanwo-Olu explained that the agreements have been updated to reflect current realities in the power sector, introducing a payment structure tied strictly to metered electricity consumption.
According to him, the policy is designed to enhance accountability, reduce wasteful spending, and improve the reliability of electricity for public infrastructure.
The state government says the initiative will also support future expansion of power capacity while ensuring more efficient use of resources.
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