Sahara Power Enterprise Group (SPEG) has commenced construction of a $12 million Independent Power Plant (IPP) in Ogba, Lagos, in a move aimed at improving electricity supply to businesses, industries, residential communities and public institutions within the area.
The 12MW gas-fired power plant, being developed at the Ogba Undertaking of Ikeja Electric Plc, is expected to be completed in the first quarter of 2027.
The project will comprise six generating units, each with a capacity of 2MW, and is designed to provide a more reliable and cost-effective electricity supply to customers across Ogba, Acme Road, Wemco Road and surrounding communities.
Speaking at the groundbreaking ceremony, Group Managing Director of Sahara Power Enterprise Group, Kola Adesina, said the investment reflected the company’s commitment to addressing Nigeria’s electricity challenges through practical infrastructure development.
Adesina said the project was not merely about constructing another power plant but represented a broader commitment to strengthening the country’s energy future.
‘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.
According to him, the plant would deploy modern gas-powered generating technology designed to meet established environmental, operational and safety standards.
He commended the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission (LASERC), Ikeja Electric, Cummins and other stakeholders for their support towards the realisation of the project.
The investment comes amid continuing efforts to improve electricity supply in Nigeria through a combination of grid expansion, embedded generation and private-sector investment in power infrastructure.
The Ogba IPP is expected to provide dedicated additional generation capacity within the Ikeja Electric network, potentially reducing the pressure on existing electricity supply sources while supporting economic activities in one of Lagos’s important commercial and industrial corridors.
Acting Chief Executive Officer of Ikeja Electric Plc, Ogochukwu Onyelucheya, described the project as an important step towards improving the quality, reliability and sustainability of electricity supply to customers.
She said the IPP represented a strategic investment that would provide a dependable and cost-effective source of electricity while supporting business expansion and economic development within the designated areas.
‘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,’ Onyelucheya said.
The project is also expected to have wider economic benefits for the Ogba community and its environs, particularly through improved operating conditions for businesses that depend heavily on electricity to sustain production and services.
Executive Chairman of Agege Local Government, Abdul-Ganiyu Obasa, said improved electricity supply would help create an enabling environment for businesses, attract new investments and generate employment opportunities within the community.
He said reliable power remained an important requirement for local economic development, particularly for small and medium-sized businesses that often bear the high cost of alternative electricity sources.
Construction of the plant is being undertaken by Cummins West Africa Limited, which is responsible for deploying the generating technology for the project.
Managing Director of Cummins West Africa Limited, Mark Oni-Okeke, said the company was pleased to partner with Sahara Power on the project, stressing the importance of reliable and sustainable electricity to Nigeria’s socio-economic development.
He said the partnership demonstrated the role of technology and private-sector investment in addressing the country’s energy infrastructure needs.
The traditional ruler of Ogbaland, HRM Oba Egbeyemi Latif Oladimeji, expressed appreciation to Sahara Power for locating the project within the community and pledged the support of the palace and residents.
‘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,’ he said.
The project is expected to be commissioned in the first quarter of 2027, after which the six 2MW gas-fired units will contribute a combined 12MW of additional generation capacity to serve the designated areas.
The Ogba IPP forms part of Sahara Power Enterprise Group’s wider strategy to deploy innovative solutions across Nigeria’s electricity value chain.
The group said the investment was also intended to strengthen energy infrastructure and contribute to narrowing the country’s power supply gap.