Sahara Power Enterprise Group has commenced construction of a $12 million, 12-megawatt gas-fired Independent Power Plant (IPP) at the Ogba Undertaking of Ikeja Electric Plc in Lagos.
The project, which began with a groundbreaking ceremony on Thursday, is expected to be completed in the first quarter of 2027.
The plant is being developed as six 2MW gas-fired generating units and is designed to improve electricity supply to businesses and communities across Ogba, Acme Road, Wemco Road and surrounding areas.
The project is also expected to serve industrial clusters, commercial centres, residential communities and public institutions within the Ogba axis to support economic activity and job creation.
Speaking at the groundbreaking ceremony, Group Managing Director of Sahara Power Enterprise Group, Kola Adesina, said the investment was part of the company’s efforts to address persistent challenges in Nigeria’s power sector.
Adesina said the project represented a broader commitment to improving the availability and reliability of electricity for businesses and communities.
“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 added that Sahara Power’s continued investment in power infrastructure was aimed at improving electricity reliability while supporting economic growth.
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 will also include standby capacity intended to support continuity of electricity supply when some units are undergoing maintenance.
Adesina commended the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission, Ikeja Electric, Cummins and other stakeholders for their support in advancing the project.
The Acting Chief Executive Officer of Ikeja Electric Plc, Ogochukwu Onyelucheya, described the development as an important step towards improving the quality, reliability and sustainability of electricity supplied to customers on the network.
Onyelucheya said the plant would provide a more dependable and cost-effective source of electricity for businesses and communities within the designated areas while supporting economic activity and job creation.
She commended Sahara Power Enterprise Group for spearheading the development, describing the investment as a strategic intervention that would strengthen the reliability and sustainability of electricity supply across 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 will be undertaken by Cummins, which will leverage its global expertise in power generation and energy infrastructure delivery.
The Managing Director of Cummins West Africa Limited, Mark Oni-Okeke, said the company was pleased to partner with Sahara Power on the project.
He said the collaboration would help “accelerate sustainable socio-economic development reliably and sustainably.”
Also speaking, the Executive Chairman of Agege Local Government, Abdul-Ganiyu Obasa, commended Sahara Power for the initiative, saying the project would stimulate business development and increase economic activity in the area.
“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,” Obasa said.
The Ologba of Ogbaland, Oba Egbeyemi Oladimeji, also expressed appreciation to Sahara Power for making Ogba a beneficiary of the investment.
“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 said.
The project is expected to provide additional electricity capacity to the Ogba axis and contribute to improved power availability for businesses, communities and public institutions when completed.
