Fenchurch Group has commenced the rebuild of the 26 MW Akute Independent Power Plant to provide dedicated electricity to major waterworks in Lagos State.
Site works commenced on Saturday, September 26, 2026, with the decommissioning of the plant’s existing engines, while 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.
Ogunleye said the 26 MW capacity was determined by the peak electricity demand of the water infrastructure the plant is expected to serve. Kanyi Daily reports that 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.”
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.
Ogunleye led a stakeholder delegation to the Oregun fabrication yard to inspect engines being prepared and containerised for deployment to the Akute plant. The delegation included engineers from the Lagos Water Corporation, the Lagos State Electrification Agency, and representatives of Head Energy and Zenith Bank Plc. Surplus power will be supplied to Ikeja Electric’s network. Zenith Bank is financing the project.
Ogunleye 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. 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, which was scheduled to run from February to October 2026. The rehabilitation includes the replacement and upgrade of pumps as part of efforts to improve the operation of the water infrastructure.
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. The proposed pilot Public-Private Partnership (PPP) scheme would involve private sector expertise, financing and innovation in the operation of the waterworks. Lekki, Akilo, Victoria Island Annex, Magodo, Abesan, Alexander and Apapa Waterworks would be concessioned in lots to financially capable investors.
The Lagos State Government disclosed that 1.5 million residents are actively served by the public water system, with current coverage levels at 44%. Areas currently served include Akilo, Parkview Estate, parts of Lekki 1 and Abesan, among others.
