The Lagos State Government has signed a Strategic Framework for Gas Supply and Energy Development with the Gas Aggregator Company Nigeria, aiming to meet a planned 6,000 megawatts of electricity for the state at less than half the prevailing gas to power price.

Governor Babajide Sanwo-Olu, represented by his deputy Kadri Obafemi Hamzat at Lakowe Resort, Ibeju-Lekki, described the agreement as more than a document, calling it a strategic, practical and enforceable plan that lays the foundation for definitive gas supply and offtake agreements.

“It secures gas for Lagos at a price point that is less than half of current general market gas to power pricing,” he said, adding that the framework aligned with the Lagos Independent Electricity Policy and the THEMES Plus Agenda.

Sanwo-Olu said the deal removed a major obstacle facing Independent Power Producers by guaranteeing affordable fuel, supporting the state’s decentralized electricity market and encouraging private investment.

Commissioner for Energy and Mineral Resources Biodun Ogunleye said Lagos currently receives about one gigawatt from the national grid against demand of more than six gigawatts. GACN Managing Director Chijioke Uszoho assured of his company’s commitment to sustainable energy supply for the state.