Sahara Power begins construction of $12m 12MW plant in Lagos
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Sahara Power Enterprise Group has commenced construction of a 12-megawatt gas-fired Independent Power Plant in Lagos, in a $12 million investment aimed at improving electricity supply to businesses, industries and communities within the Ogba axis.
The project is being developed at the Ogba Undertaking of Ikeja Electric Plc and is expected to be completed in the first quarter of 2027.
The facility will consist of six generating units, each capable of producing 2MW, giving the plant a combined capacity of 12MW.
When completed, the plant is expected to supply electricity to industrial clusters, commercial centres, residential communities and public institutions across Ogba, Acme Road, Wemco Road and surrounding areas.
Project targets improved power reliability
The project is part of efforts by Sahara Power to address some of the electricity supply challenges affecting businesses and residents in Lagos.
Speaking at the groundbreaking ceremony, Group Managing Director of Sahara Power Enterprise Group, Kola Adesina, said the investment reflects the company’s commitment to developing practical solutions to Nigeria’s energy challenges.
He said improved electricity availability would help businesses increase productivity, support economic expansion and create additional value within communities.
According to the company, the plant will use modern gas-powered generation technology designed to meet environmental, operational and safety standards.
The six-unit configuration is also expected to provide greater operational flexibility, including standby capacity that can help maintain supply when individual units are undergoing maintenance.
Ikeja Electric welcomes investment
Ikeja Electric’s Acting Chief Executive Officer, Ogochukwu Onyelucheya, described the project as a strategic development that would contribute to improving the quality, reliability and sustainability of electricity supplied to customers within the Ogba Undertaking.
She said the plant would provide a more dependable and cost-effective electricity source for businesses and communities, while supporting economic activity and job creation.
Onyelucheya also emphasised the importance of partnerships between electricity distributors and private investors in developing solutions that can improve customer experience and strengthen electricity infrastructure.
Cummins to construct plant
Construction of the facility will be undertaken by Cummins West Africa Limited, which will provide its expertise in power generation and energy infrastructure development.
The company’s Managing Director, Mark Oni-Okeke, said Cummins was pleased to partner with Sahara Power on the project, describing the investment as an opportunity to contribute to reliable and sustainable socio-economic development.
The project has also received support from government authorities and community stakeholders.
Representatives of the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission, Ikeja Electric, Cummins and local authorities were among stakeholders acknowledged for their support.
Community expects economic benefits
Executive Chairman of Agege Local Government, Abdul-Ganiyu Obasa, welcomed the project, saying improved electricity supply would create a more favourable environment for businesses to expand, attract investment and generate employment.
He noted that independent power projects could play an important role in improving energy security and supporting sustainable economic development.
The Ologba of Ogbaland, Oba Egbeyemi Latif Oladimeji, also expressed appreciation to Sahara Power for siting the project in the Ogba area and pledged the support of the traditional institution and residents of the community.
The plant is expected to serve a mix of industrial, commercial, residential and public-sector customers when completed.
The investment comes as private-sector participation continues to play a growing role in efforts to address Nigeria’s electricity supply challenges, with businesses and communities increasingly looking beyond the national grid for more reliable sources of power.
For Sahara Power, the Ogba project represents another investment in generation infrastructure aimed at strengthening electricity supply and supporting economic activity in Lagos.
With construction now underway, the company is targeting the first quarter of 2027 for completion of the 12MW facility.
