Sahara Power Launches Construction of 12MW IPP in Lagos

Sahara Power Enterprise Group (SPEG), one of Africa’s largest privately owned power companies, has begun construction of a 12MW Independent Power Plant (IPP) at Ikeja Electric Plc’s Ogba Undertaking in Lagos. The project is expected to strengthen electricity infrastructure and contribute to more reliable power supply in the area.

The US$12 million project, expected to be completed in the first quarter of 2027, will feature six 2MW gas-fired generating units. It will supply reliable and affordable electricity to industrial areas, businesses, residential communities and public institutions in Ogba, Acme Road, Wemco Road and neighbouring areas.

Speaking at the groundbreaking ceremony, Kola Adesina, Group Managing Director of Sahara Power Enterprise Group, said the project reflected Sahara’s commitment to providing practical energy solutions and contributing to the development of Nigeria’s power sector. “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.

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Adesina pointed out that the facility will utilise modern gas-powered generation technology, in line with recognised environmental, operational and safety standards. He also commended the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission (LASERC), Ikeja Electric, Cummins and other stakeholders for supporting the project.

Ogochukwu Onyelucheya, Acting Chief Executive Officer, Ikeja Electric Plc, said the IPP represents an important step towards improving the quality, reliability, and sustainability of electricity supply to customers. She described the project as a strategic investment that will provide a more dependable and cost-effective source of electricity while supporting business growth 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,” she said.

Also speaking, Abdul-Ganiyu Obasa, Executive Chairman, Agege Local Government, said improved electricity supply would create an enabling environment for businesses, attract investment, and generate employment opportunities within the community.

Construction of the power plant will be undertaken by Cummins West Africa Limited.

Mark Oni-Okeke, Managing Director, Cummins West Africa Limited, said the company was delighted to partner with Sahara Power to accelerate socio-economic development through reliable and sustainable energy solutions.

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 Ogba IPP forms part of Sahara Power Enterprise Group’s broader efforts to deploy innovative solutions across Nigeria’s electricity value chain, strengthen energy infrastructure and contribute to closing the country’s power supply gap.