Axxela Limited, a leading energy solutions provider in sub-Saharan Africa, has announced a strategic collaboration with the Lagos State Government to address the region’s energy challenges and improve power reliability. The company shared this development in a statement on its website on Monday.
During a recent visit to Governor Babajide Sanwo-Olu at the Lagos House in Marina, Axxela reaffirmed its commitment to enhancing Lagos' energy infrastructure. Through its subsidiary, Gaslink Nigeria Limited, the company has been at the forefront of private-sector natural gas distribution, expanding Lagos’ gas network by over 170 kilometers across key industrial and commercial areas.
Expanding Gas Infrastructure for Economic Growth
Axxela’s gas pipeline network currently spans major hubs, including Ikeja, Ilupeju, Isolo, Ijora, Apapa, Tin Can Island, Victoria Island, and Eko Atlantic. The company is also extending its infrastructure along the Victoria Island-Lekki corridor, aiming to improve energy access and support industrial expansion.
By offering a cleaner and cost-effective alternative to traditional energy sources, Axxela is helping businesses lower operational costs while contributing to Nigeria’s decarbonization efforts. Its robust gas distribution network has attracted new industries, enabled business growth, and increased Lagos State’s tax revenues.
Powering Lagos Through Independent Power Projects
Beyond gas distribution, Axxela has demonstrated expertise in power generation by developing Independent Power Projects (IPPs) for Lagos State. These include facilities in Akute, Alausa, and Lagos Island. Most recently, the company completed a 5.8 MW power project for Cadbury Nigeria, reinforcing its role in enhancing energy reliability for industries.
Strengthening Government Partnerships for Energy Security
Governor Sanwo-Olu reaffirmed Lagos State’s commitment to fostering a business-friendly environment for investors. He emphasized the state’s support for companies like Axxela in their efforts to expand energy infrastructure and drive sustainable development.
Kehinde Alabi, Managing Director of Axxela Gas Distribution, highlighted the company’s dedication to bridging the energy gap:
“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 directly support industrialization and environmental sustainability. 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.”
Commitment to Social Impact and Community Development
Beyond energy solutions, Axxela actively invests in social initiatives. The company collaborates with LASPARK on annual tree-planting programs to combat climate change and improve urban green spaces. Additionally, through its Back-to-School Scholarship Initiative, Axxela has supported hundreds of students in its host communities, reinforcing its commitment to education and youth empowerment.
Lagos' Electricity Deficit: A Growing Challenge
According to the recently released Lagos Economic Development Update (LEDU) 2025, Lagos’ electricity shortfall imposes a significant financial burden on residents and businesses, adding an estimated ₦5.3 trillion annually in costs. Despite requiring 9,000 MW of electricity, the state receives only 1,000 MW from the national grid—just 11% of demand.
With its expanding energy infrastructure and commitment to sustainable power solutions, Axxela is positioning itself as a key partner in addressing Lagos’ growing energy needs.