Axxela partners Lagos govt to tackle energy deficit, power industrial growth
In a strategic move to tackle Lagos State’s persistent energy deficit, Axxela Limited, a leading energy solutions provider in Sub-Saharan Africa, has announced a partnership with the Lagos State Government to improve power reliability and reduce the existing energy gap.
The agreement was formalised during a visit to Governor Babajide Sanwo-Olu at the Lagos House, Marina.
Through its subsidiary, Gaslink Nigeria Limited, Axxela has been instrumental in transforming energy distribution across Lagos. Its extensive gas pipeline network, spanning over 170 kilometres, has successfully introduced cleaner and more cost-effective energy alternatives to key areas, including Ikeja, Ilupeju, Isolo, Ijora, Apapa, Tin Can Island, Victoria Island, and Eko Atlantic.
The company continues to expand its reach, with an ongoing extension of its infrastructure towards the Victoria Island-Lekki corridor—an area rapidly emerging as an industrial hub.
This expansion is already making a significant impact on businesses in Lagos. By providing an affordable and sustainable energy solution, Axxela is helping companies lower operational costs, attract new industries, and facilitate business growth. These initiatives are not only stimulating economic progress but also increasing tax revenues for the Lagos State Government.
Beyond gas distribution, Axxela has played a crucial role in the development of Independent Power Projects (IPPs) across Lagos. The company has been actively involved in projects in Akute, Alausa, and Lagos Island, with its most recent venture—a 5.8 MW power project for Cadbury Nigeria—reinforcing its commitment to improving the state’s energy infrastructure and ensuring a more stable power supply for industries.
During the meeting with Axxela’s leadership, Governor Sanwo-Olu reaffirmed the state government’s commitment to fostering a supportive environment for investment, particularly in the energy sector. He stressed that Lagos is eager to work alongside Axxela and other private investors to further develop the state’s energy infrastructure and promote sustainable growth.
“We are dedicated to creating a business-friendly climate that encourages private sector investment,” Governor Sanwo-Olu stated. “Axxela’s contributions are vital in closing the energy gap and strengthening Lagos’ energy security.”
Kehinde Alabi, Managing Director of Axxela Gas Distribution, outlined the company’s long-term vision for Lagos: “Lagos is central to our operations, and our initiatives are focused on driving industrialisation, ensuring energy security, and promoting environmental sustainability.
“Our ongoing infrastructure expansion along the Victoria Island-Lekki corridor and our AGI facility in Ikeja demonstrate our unwavering commitment to sustainable energy solutions.”
Beyond its core business, Axxela is also making notable social contributions. Through its annual tree-planting programmes in collaboration with LASPARK, the company is actively supporting climate change mitigation and improving urban green spaces.
Additionally, its Back-to-School Scholarship Initiative has provided financial assistance to hundreds of students from host communities, reinforcing its commitment to education and youth empowerment.
According to the Lagos Economic Development Update (LEDU) 2025, the state faces a severe energy deficit, requiring approximately 9,000 megawatts (MW) of electricity while receiving only 1,000 MW from the national grid—just 11 per cent of its actual demand. The report estimates that this shortfall adds an extra N5.3 trillion annually to the costs shouldered by Lagos residents and businesses.
By strengthening its partnership with the Lagos State Government, Axxela is positioning itself as a key player in bridging this energy gap, driving industrial development, and fostering long-term economic stability in the region.
