Odu’a Investment Company Limited has entered into a strategic partnership with Elektron Energy Development Strategies Limited to develop a 50-megawatt gas-fired Independent Power Plant (IPP) in Lagos, marking a significant push toward decentralised energy solutions for Nigeria’s industrial sector.
The $40 million project, unveiled during a signing ceremony in Lagos on Thursday, will be located at the former Cocoa Industries Limited Complex within the Ogba Industrial Estate, one of the state’s busiest commercial corridors. Designed as an embedded power solution, the plant will deliver electricity directly to industrial users, bypassing the national grid and reducing dependence on diesel generators.The initiative will be executed through a Special Purpose Vehicle (SPV), combining Odu’a Investment’s regional investment capacity with Elektron Energy’s technical expertise in power infrastructure development.
Speaking at the event, the Group Chairman of Odu’a Investment Company Limited, Bimbo Ashiru, described the project as a cornerstone of the company’s long-term infrastructure strategy. “This landmark project represents a significant step in Odu’a Investment’s long-term strategy to invest in critical infrastructure that drives economic growth, industrial productivity and sustainable development across South-West Nigeria and the broader national economy,” he said. Ashiru added that the initiative would serve as “a strategic catalyst for industrial revitalisation, enhanced energy security, and sustainable economic growth across the South-West.”
For Elektron Energy, the project reflects a broader vision of power as an enabler of economic activity rather than just a utility service. Founder and Co-Chief Executive Officer, Tola Talabi, emphasised the targeted nature of the intervention. “This project reflects exactly how we think about power at Elektron. Not as standalone generation but as enabling infrastructure for economic activity,” Talabi said.
“The Ogba IPP is a targeted intervention in one of Lagos’ most commercially significant corridors, designed to deliver reliable power where it is needed most and to do so in a way that is scalable, bankable, and sustainable.” Industry operators say the project could significantly reduce operating costs for manufacturers within the Ogba axis, many of whom rely on self-generation to maintain production amid Nigeria’s inconsistent grid supply.
Energy costs remain one of the largest expenses for businesses, particularly in industrial clusters. Also speaking, the Group Managing Director of Odu’a Investment, Abdulrahman Yinusa, noted that the partnership positions the company at the forefront of Nigeria’s evolving energy landscape.
“The initiative marks a defining step in driving industrial renewal, strengthening energy resilience, and advancing sustainable growth in the Southwest,” Yinusa said. The project comes amid a growing shift toward privately financed, corridor-level energy infrastructure in Nigeria, as businesses and investors seek more reliable alternatives to the national grid.
Analysts note that embedded generation projects like the Ogba IPP are increasingly critical to bridging the country’s persistent power deficit while supporting industrial expansion.
