Sahara Power begins construction of $12 million 12MW power plant in Lagos

Africa’s largest private power business, Sahara Power Enterprises Group (SPEG), has commenced construction of a 12MW Independent Power Plant (IPP) at the Ogba Undertaking of Ikeja Electric Plc in Lagos.

The $12 million project is expected to strengthen electricity infrastructure and improve power supply reliability in the areas covered by the project.

This was disclosed in a statement issued by Sahara Power Enterprises Group on Thursday, August 27, 2026, and seen by Nairametrics.

The project, scheduled for completion in the first quarter of 2027, will comprise six 2MW gas-fired generating units and provide reliable and cost-effective electricity to industrial clusters, businesses, residential communities and public institutions across Ogba, Acme Road, Wemco Road and surrounding areas.

What they are saying

The Group Managing Director of SPEG, Kola Adesina, who spoke at the groundbreaking ceremony, said the project demonstrates Sahara’s commitment to delivering practical solutions that support Nigeria’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.”
• Adesina said improving the availability and reliability of power would enhance productivity, growth and value creation.
• The Acting Chief Executive Officer of Ikeja Electric Plc, Ogochukwu Onyelucheya, said the IPP represents an important step towards improving the quality, reliability and sustainability of electricity supply to customers.
• “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.”

Adesina noted that the facility would deploy modern gas-powered generating technology aligned with established 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.

Onyelucheya described the project as a strategic investment that would provide a more dependable and cost-effective source of electricity while supporting business growth and economic development within the designated areas.

More insight

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

• Cummins West Africa Limited will undertake the construction of the power plant.
• The Managing Director of Cummins West Africa Limited, Mark Oni-Okeke, said the company was delighted to partner with Sahara Power to accelerate socio-economic development through reliable and sustainable energy solutions.
• He said the Ogba IPP forms part of Sahara Power Enterprises Group’s broader efforts to deploy innovative solutions across Nigeria’s electricity value chain and strengthen energy infrastructure.
• The project is also expected to contribute to efforts to close Nigeria’s power supply gap.

The Ogba IPP adds to SPEG’s investments aimed at improving electricity generation and supply across Nigeria.

What you should know

In June 2025, Sahara Power Group (SPG), in partnership with Crescendough Nigeria Limited (CNL), commissioned the 180MW Afam II Power Plant in Rivers State, reinforcing the role of private-sector investment in Nigeria’s electricity sector.

• Sahara Power Group and Crescendough completed the project, which was conceived, managed and delivered in 16 months using predominantly Nigerian expertise.
• The plant was described as an important addition to the national grid and efforts to expand energy access.
• The facility is fully operational and is expected to support electricity supply to homes, businesses and industries.
• The project also underscores the growing role of private-sector investment in addressing Nigeria’s electricity infrastructure and power supply challenges.

The construction of the Ogba IPP represents another investment by Sahara Power aimed at strengthening Nigeria’s electricity value chain and improving access to reliable power.