The plan involves four power hubs, each designed to generate at least 500MW, with a combined target of up to 4,000MW to boost electricity supply.
The project aims to reduce Lagos’ wide power gap, where demand is estimated at 6,000MW but supply from the national grid remains below 2,000MW.
To improve efficiency, the hubs will be located near distribution infrastructure operated by Eko Electricity Distribution Company and Ikeja Electric.
Under the model, the state will provide land and regulatory support, while private investors handle financing, construction, and operations under Power Purchase Agreements.
The initiative follows reforms under the Electricity Act 2023, which allows states to develop independent electricity markets and attract private sector participation.