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Fenchurch Group has commenced the rebuild of the 26 MW Akute Independent Power Plant to provide dedicated electricity to major waterworks in Lagos State.
According to a statement by Fenchurch, site works commenced on Saturday, September 26, 2026, with the decommissioning of the plant’s existing engines, while the Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, inspected engines being prepared for the project at the Oregun fabrication yard of Jubaili Bros Engineering Ltd. on Monday.
The plant will supply power to the Akute Intake, Iju Waterworks and Adiyan Waterworks, which are expected to have a combined capacity of about 185 million gallons per day (MGD) once the Adiyan Phase II project is completed.
26 MW plant to power Lagos waterworks
Ogunleye said the 26 MW capacity was determined by the peak electricity demand of the water infrastructure the plant is expected to serve.
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- “It’s 26 MW we are saying now because 26 MW is your peak demand,” Ogunleye said.
- “Not only is the State Government investing a lot in our water production facilities, but we are also anticipating a lot of investment in power generation as a whole,” he added.
He said the Akute site could accommodate significantly more generation capacity in the future, potentially scaling to 100 MW or 200 MW depending on the state’s plans.
Olufemi Bakare, Group CEO of Fenchurch Group, said the project is intended to provide reliable electricity for Lagos’ expanding water infrastructure, which requires continuous power to operate.
- “Water needs power. Lagos State has invested significantly in its water infrastructure, and our mandate is to keep it running reliably, around the clock,” Bakare said.
- “This project shows what effective public-private partnership can deliver. We thank the Lagos State Government, Zenith Bank and Ikeja Electric for their confidence,” he added.
Project details
Fenchurch holds the concession through its special purpose vehicle, Aggregate Utilities Limited, under an agreement with the Lagos State Government, while Fenchurch Power Limited is the project developer.
- The existing engines at the plant are being decommissioned and replaced with new MWM gas engines.
- The project is being delivered in two phases, with 10 MW expected to be available within four months and the remaining 16 MW within 12 months.
- On Monday, Ogunleye led a stakeholder delegation to the Oregun fabrication yard of original equipment manufacturer (OEM) Jubaili Bros Engineering Ltd. to inspect engines being prepared and containerised for deployment to the Akute plant.
The delegation included engineers from the Lagos Water Corporation, Engr. K.A.T. Balogun, General Manager, Lagos State Electrification Agency, and Mr Usifo Ogbebor of Head Energy, Zenith Bank Plc.
The plant will provide dedicated electricity to the Akute Intake, Iju Waterworks and Adiyan Waterworks, while surplus power will be supplied to Ikeja Electric’s network.
Zenith Bank is financing the project.
Lagos upgrades Iju, Akute waterworks
Earlier in February, the Lagos State Government, through the Lagos Water Corporation (LWC), commenced an eight-month rehabilitation project covering the Iju Headworks and Akute Intake Station.
The rehabilitation, which is scheduled to run from February to October 2026, includes the replacement and upgrade of pumps as part of efforts to improve the operation of the water infrastructure.
The Managing Director of LWC, Engr. Mukhtaar Tijani, said the rehabilitation focuses mainly on pump replacement and upgrades following approval by Governor Babajide Olusola Sanwo-Olu.
The rehabilitation of the water infrastructure is taking place alongside the planned power plant rebuild, with both projects aimed at improving the operation of critical water facilities.
Lagos expands private water partnerships
LWC had also announced in September 2025 plans to partner with the private sector to rehabilitate, upgrade and operate seven mini and micro waterworks across the state.
- Tijani said the proposed pilot Public-Private Partnership (PPP) scheme would involve private sector expertise, financing and innovation in the operation of the waterworks.
- Under the proposed scheme, Lekki, Akilo, Victoria Island Annex, Magodo, Abesan, Alexander and Apapa Waterworks would be concessioned in lots to financially capable investors.
- Meanwhile, the Lagos State Government had earlier disclosed that 1.5 million residents are actively served by the public water system.
The Ministry of Environment and Water Resources told Nairametrics that current coverage levels stand at 44%, while the population connected to the system is 1.5 million people.
The ministry explained that the 44% figure refers to residents with physical access to the water network, though not all are fully connected to household taps.
Areas currently served include Akilo, Parkview Estate, parts of Lekki 1 and Abesan, among others.
