Business

Sahara Power begins construction of $12m, 12MW power plant in Lagos

Ogba Independent Power Plant expected to boost electricity supply to businesses, industries and communities from first quarter 2027…..

Sahara Power Enterprises Group has commenced construction of a $12 million, 12-megawatt Independent Power Plant at the Ogba Undertaking of Ikeja Electric Plc in Lagos.

The project is expected to improve the reliability of electricity supply to businesses, industrial clusters, residential communities and public institutions within Ogba and surrounding areas.

The company disclosed this in a statement issued on Thursday, August 27, 2026.

Scheduled for completion in the first quarter of 2027, the facility will consist of six gas-fired generating units, each with a capacity of two megawatts.

The plant is expected to serve customers across Ogba, Acme Road, Wemco Road and neighbouring communities, providing a more reliable and cost-effective source of electricity.

Speaking at the groundbreaking ceremony, the Group Managing Director of Sahara Power Enterprises Group, Kola Adesina, said the project reflected the company’s commitment to developing practical solutions to Nigeria’s electricity challenges.

He said the investment went beyond the construction of a power plant, describing it as part of the company’s broader effort to support Nigeria’s energy future.

Adesina said improved electricity availability and reliability would help businesses increase productivity, drive economic growth and create greater value across the affected communities.

He added that the facility would use modern gas-powered generating technology designed to meet established environmental, operational and safety standards.

The SPEG executive commended the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission, Ikeja Electric, Cummins and other stakeholders for their support for the project.

The Acting Chief Executive Officer of Ikeja Electric, Ogochukwu Onyelucheya, described the project as an important step towards improving the quality, reliability and sustainability of electricity supplied across the company’s network.

“At Ikeja Electric, our priority is to partner with forward-looking investors and developers such as SPEG to deliver innovative solutions that improve customer experience and reliable electricity supply across our network,” Onyelucheya said.

She said the project would provide customers with a more dependable source of electricity while supporting business expansion and economic activity within the designated areas.

Also speaking at the event, the Executive Chairman of Agege Local Government, Abdul-Ganiyu Obasa, said improved power supply would create a more favourable environment for businesses and investment.

He added that reliable electricity could contribute to job creation and economic opportunities within the community.

Cummins West Africa Limited is responsible for constructing the power plant.

The company’s Managing Director, Mark Oni-Okeke, said Cummins was pleased to partner with Sahara Power on the project, adding that reliable and sustainable energy remained critical to socio-economic development.

According to him, the Ogba IPP forms part of SPEG’s broader efforts to deploy innovative solutions across Nigeria’s electricity value chain and strengthen power infrastructure.

The project is also expected to contribute to efforts to address Nigeria’s persistent electricity supply deficit.

The Ogba investment adds to Sahara Power’s growing portfolio in Nigeria’s power sector.

In June 2025, Sahara Power Group, in partnership with Crescendough Nigeria Limited, commissioned the 180MW Afam II Power Plant in Rivers State.

The project was completed in 16 months using predominantly Nigerian expertise and was designed to contribute additional generation capacity to the national electricity system.

The company said its investments in projects such as the Ogba IPP and Afam II reflect its continued focus on strengthening electricity generation and supply infrastructure across Nigeria.

 

Opeyemi Owoseni

Opeyemi Oluwatoni Owoseni is a broadcast journalist and business reporter at TV360 Nigeria, where she presents news bulletins, produces and hosts the Money Matters program, and reports on the economy, business, and government policy. With a strong background in TV and radio production, news writing, and digital content creation, she is passionate about delivering impactful stories that inform and engage the public.

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