Sahara Power begins construction of 12MW gas plant to boost electricity supply in Lagos

Business Pointers

By Seun Ibiyemi

Sahara Power Enterprise Group (SPEG) has commenced construction of a 12-megawatt gas-fired Independent Power Plant (IPP) in Lagos, targeting improved electricity supply to businesses, residents and public institutions across Ogba, Acme Road, Wemco Road and surrounding communities.

The project, located within the Ogba Undertaking of Ikeja Electric Plc, is expected to be completed in the first quarter of 2027 and is aimed at addressing persistent power supply challenges in one of Lagos State’s major commercial and industrial corridors.

The plant is expected to provide a more reliable source of electricity for manufacturers, small and medium-sized enterprises, retailers, residential communities and public institutions, while supporting productivity, job creation and business expansion.

L-R, Anthony Youdeowei, Managing Director, Sahara Power Enterprise Group; Olajide Kumapayi, Chief Operating Officer, Ikeja Electric; Kola Adesina, Group Managing Director, Sahara Power Enterprise Group; Bunmi Fafiyebi, Project Manager, Sahara Power Enterprise Group; Hon Abdul-Ganiyu Vinod Obasa, Executive Chairman, Agege Local Government; HRM. Oba Egbeyemi Latif Oladimeji, Ologba of Ogbaland and Mark Oni-Okeke, Managing Director Cummins West Africa Ltd. during the groundbreaking ceremony of 12MW Independent Power Plant at Ogba, Lagos on Thursday , 27 August, 2026.

Speaking at the groundbreaking ceremony, Group Managing Director of Sahara Power Enterprise Group, Kola Adesina, said the project demonstrated the company’s commitment to addressing Nigeria’s energy challenges through practical infrastructure investments.

“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,” Adesina said.

He said improved power availability and reliability would enhance productivity, economic growth and value creation in the affected communities.

According to him, the plant would deploy modern gas-powered generation technology and operate through a six-unit configuration designed to provide operational flexibility and maintain continuity during routine maintenance.

The project is expected to reduce electricity supply constraints within the Ikeja Electric undertaking and provide a stronger foundation for commercial and industrial activities in the area.

Acting Chief Executive Officer of Ikeja Electric, Ogochukwu Onyelucheya, said the project represented an important step towards improving the quality, reliability and sustainability of electricity supplied to the company’s customers.

She said the plant would provide a more dependable and cost-effective electricity source for businesses and communities in 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,” Onyelucheya said.

Executive Chairman of Agege Local Government, Abdul-Ganiyu Obasa, also commended the initiative, saying improved electricity supply would create a more favourable environment for businesses, investment and employment.

He described independent power projects as critical to achieving energy security and sustainable development.

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The Engineering, Procurement and Construction (EPC) scope of the project will be undertaken by Cummins West Africa Limited.

Its Managing Director, Mark Oni-Okeke, said the company was pleased to partner with Sahara Power on the project, describing it as an opportunity to accelerate sustainable socio-economic development.

The Ologba of Ogbaland, HRM Oba Egbeyemi Latif Oladimeji, also expressed the community’s support for the project, saying residents were looking forward to its completion and the expected economic benefits.

Sahara Power said the 12MW plant forms part of its broader strategy of investing in targeted power infrastructure to improve energy access and reliability while supporting businesses and communities across Nigeria.

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