Axxela Limited, a leading energy solutions provider in sub-Saharan Africa, has announced plans to collaborate with the Lagos State Government to address energy challenges and enhance power reliability across the state, a statement posted on the company’s website on Monday said.
The firm made this pledge during a recent visit to Lagos State Governor, Babajide Sanwo-Olu, at the Lagos House, Marina.
Through its subsidiary, Gaslink Nigeria Limited, Axxela has been instrumental in pioneering private-sector natural gas distribution, significantly expanding Lagos’ gas infrastructure by over 170km across major industrial and commercial hubs.
Axxela’s gas pipeline network spans key areas, including Ikeja, Ilupeju, Isolo, Ijora, Apapa, Tin Can Island, Victoria Island, and Eko Atlantic. The company is also extending its infrastructure to the Victoria Island-Lekki corridor, further enhancing energy access and supporting industrial growth.
By providing a cleaner and more cost-effective energy alternative, Axxela is helping businesses reduce operational costs while contributing to Nigeria’s decarbonization efforts. Its extensive gas distribution network has attracted new industries and enabled existing businesses to thrive, stimulating economic growth and increasing tax revenues for Lagos State.
Powering Lagos with Independent Power Projects
Beyond gas distribution, Axxela has demonstrated strong expertise in power development, having built Independent Power Projects (IPPs) for the Lagos State Government in Akute, Alausa, and Lagos Island. Most recently, the company completed a 5.8 MW power project for Cadbury Nigeria, reinforcing its role in strengthening energy reliability for industries.
Government Support and Future Collaborations
Governor Sanwo-Olu, while receiving the Axxela management team, reiterated the state government’s commitment to fostering a business-friendly environment for investors. He emphasized Lagos State’s willingness to support enterprises like Axxela in expanding energy infrastructure and promoting sustainable development.
Kehinde Alabi, Managing Director of Axxela Gas Distribution, stated:
“We take pride in driving energy security and significantly contributing to Lagos State’s energy hub. Lagos is strategic to our business, and our initiatives are directly supporting industrialisation and promoting environmental sustainability. Our goal is to continue to collaborate with the state government to bridge the energy gap. Our AGI facility in Ikeja and expansion along the VI-Lekki corridor reflect our commitment to sustainable energy solutions that empower industries and reduce carbon emissions.”
Social Impact and Community Development
In addition to its core operations, Axxela actively invests in social impact initiatives. The company has partnered with LASPARK on annual tree-planting programs to combat climate change and improve urban green spaces.
Furthermore, through its Back-to-School Scholarship Initiative, Axxela has supported hundreds of students from host communities, reinforcing its commitment to education and youth empowerment.
What you should know
According to the recently-released Lagos Economic Development Update (LEDU) 2025, published by the Lagos State Government, the state’s electricity deficit continues to place an enormous financial burden on residents and businesses, with a newly released report estimating that the energy shortfall adds an additional N5.3 trillion annually to their costs.
The report reveals that while the state requires approximately 9,000 megawatts (MW) of electricity, it receives a meagre 1,000 MW from the national grid—just 11 percent of demand.
