Sahara Power Enterprise Group has commenced construction of a $12 million gas-fired Independent Power Plant (IPP) expected to generate 12 megawatts of electricity for businesses, communities and institutions within the Ogba axis of Lagos State.
The project, being developed at the Ogba Undertaking of Ikeja Electric Plc, comprises six generating units of 2MW each and is scheduled for completion in the first quarter of 2027.
The initiative is expected to strengthen electricity supply across Ogba, Acme Road, Wemco Road and adjoining communities, particularly areas with significant commercial, industrial and residential activities.
The project is part of efforts by Sahara Power to deepen investment in Nigeria's electricity infrastructure and address persistent challenges around the availability and reliability of power supply.
Speaking at the groundbreaking ceremony, the Group Managing Director of Sahara Power Enterprise Group, Kola Adesina, said the investment demonstrated the company's commitment to supporting Nigeria's energy transition and economic development through improved electricity supply.
“This initiative is about much more than breaking ground for a new power plant. It represents a bold commitment to Nigeria’s energy future and our determination to deliver dependable, efficient, and sustainable electricity to businesses and communities. Improving the availability and reliability of power will enhance productivity, growth, and value creation,” he said.
Adesina said the project reflected Sahara Power's continued investment in critical infrastructure aimed at improving the reliability of electricity supply while creating an environment capable of supporting businesses and economic expansion.
The company said the plant would deploy modern gas-powered generation technology designed to comply with environmental, operational and safety requirements.
It added that the six-unit configuration was deliberately designed to provide operational flexibility, including standby capacity that would help ensure continuity of supply when some units are taken offline for maintenance.
The arrangement is expected to reduce the risk of prolonged interruptions and improve the plant's ability to maintain supply to customers within its designated service areas.
Adesina commended the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission, Ikeja Electric, Cummins and other stakeholders for their support towards the development of the project.
For Ikeja Electric, the project represents another step towards improving the quality and sustainability of electricity delivered to customers across its network.
The Acting Chief Executive Officer of Ikeja Electric Plc, Ogochukwu Onyelucheya, said the development would provide a more dependable and cost-effective source of electricity for businesses and communities in the designated areas.
She added that improved power supply would help stimulate economic activity and create employment opportunities.
Onyelucheya commended Sahara Power Enterprise Group for spearheading the project, describing the investment as a strategic intervention that would strengthen the reliability and sustainability of electricity supply to customers within the Ogba Undertaking.
“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. SPEG’s investment in this IPP demonstrates the value of strategic collaboration in creating sustainable energy solutions for our customers.”
Construction of the plant is being undertaken by Cummins West Africa Limited, which is expected to bring its expertise in power generation and energy infrastructure to the project.
The Managing Director of Cummins West Africa Limited, Mark Oni-Okeke, said the company was pleased to partner with Sahara Power on the development.
He said Cummins was committed to helping “accelerate sustainable socio-economic development reliably and sustainably.”
The project has also received support from community and local government authorities, who said improved electricity supply could have a significant effect on economic activities in the area.
The Executive Chairman of Agege Local Government, Abdul-Ganiyu Obasa, commended Sahara Power for the initiative, saying the project would stimulate business development and strengthen economic activity within the locality.
“Independent power projects such as this are essential to achieving energy security and sustainable development. Improved electricity supply will create an enabling environment for businesses to grow, attract investment and create employment opportunities for our people,” he said.
The Ologba of Ogbaland, Oba Egbeyemi Oladimeji, also expressed appreciation to Sahara Power for selecting Ogba as a beneficiary of the project.
“You have the support of the Palace and good people of Ogba and its environs. We are eagerly looking forward to the commissioning of the Plant and the positive impact on our community,” the monarch stated.
When completed, the plant is expected to serve industrial clusters, commercial centres, residential communities and public institutions across the Ogba axis.
Beyond increasing available electricity, stakeholders said the project could support local businesses by providing a more reliable power source, potentially reducing disruptions to commercial and industrial operations.
The development also underscores the growing role of embedded and independent power projects in efforts to improve electricity supply in Nigeria, particularly in areas where demand from commercial and industrial users continues to rise.
With commissioning targeted for the first quarter of 2027, stakeholders will be looking to the project to translate the investment into more reliable electricity, increased economic activity and improved business conditions for communities across Ogba, Acme Road, Wemco Road and surrounding areas.