Indigenous energy company, Sahara Power Enterprise Group (SPEG), has commenced construction of a $12 million, 12-megawatt Independent Power Plant (IPP) in Lagos, with completion targeted for the first quarter of 2027.
The project is expected to strengthen electricity supply to businesses, industries, homes and public institutions across Ogba, Acme Road, Wemco Road and neighbouring communities.
The groundbreaking ceremony held at the Ogba Undertaking of Ikeja Electric Plc marks the beginning of construction of the gas-fired facility, which will consist of six units with a capacity of 2MW each.
Sahara Power said the project is designed to address electricity reliability challenges in one of Lagos’ important commercial and industrial corridors, where businesses depend heavily on stable power to maintain operations.
The company said the plant would use modern gas-powered generation technology that meets environmental, operational and safety requirements. Its six-unit design will also provide standby capacity, allowing electricity generation to continue when some units are taken offline for maintenance.
The investment comes as efforts to improve electricity supply in Lagos increasingly involve private-sector participation. The Lagos State Government has been encouraging investments in gas-powered generation and improvements to local electricity networks as part of broader efforts to increase access to reliable power.
Kola Adesina, Group Managing Director of Sahara Power Enterprise Group, said the project goes beyond the construction of another power facility, describing it as part of the company’s wider commitment to solving some of Nigeria’s persistent electricity challenges.
According to him, dependable electricity is critical to improving productivity, expanding businesses and creating more economic value.
He said Sahara Power would continue to invest in infrastructure capable of improving electricity reliability while supporting Nigeria’s energy transition and economic development.
The company acknowledged the support of the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission (LASERC), Ikeja Electric, Cummins and other stakeholders involved in the project.
For Ikeja Electric, the development is expected to improve service delivery within its Ogba network.
Ogochukwu Onyelucheya, Acting Chief Executive Officer of Ikeja Electric Plc, said the power plant would provide a more dependable and potentially cost-effective electricity source for businesses and communities within the designated areas.
She added that the project could also support economic activity and create employment opportunities.
Onyelucheya described Sahara Power’s investment as an example of how collaboration between electricity distribution companies and private investors can produce solutions aimed at improving customer experience and power reliability.
Construction of the facility will be handled by Cummins West Africa Limited, bringing its experience in power generation and energy infrastructure to the project.
Mark Oni-Okeke, Managing Director of Cummins West Africa, said the company was pleased to partner with Sahara Power on a project aimed at supporting sustainable socio-economic development.
The project has also received support from local authorities and community leaders.
Abdul-Ganiyu Obasa, Executive Chairman of Agege Local Government, said the development could encourage businesses to expand, attract new investment and create jobs within the area.
The Ologba of Ogbaland, HRM Oba Egbeyemi Latif Oladimeji, also welcomed the project, saying the community was looking forward to its completion and the benefits it could bring to residents and businesses.
With commissioning expected in Q1 2027, the 12MW plant is positioned to become another private-sector contribution to Lagos’ growing electricity infrastructure.
For businesses operating along the Ogba-Acme-Wemco corridor, improved power reliability could reduce disruptions, support longer operating hours and strengthen productivity.
The project therefore highlights the increasing role of private investment in Nigeria’s power sector, as businesses and communities continue to seek more reliable and sustainable alternatives to an electricity supply system facing persistent capacity and infrastructure challenges.
