Sahara Power Begins Construction Of $12m 12MW Power Plant In Ogba, 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 was announced in a statement issued by SPEG on Thursday, August 27, 2026. It is scheduled for completion in the first quarter of 2027.

The plant will comprise six 2MW gas-fired generating units. It is designed to provide reliable and cost-effective electricity to industrial clusters, businesses, residential communities and public institutions across Ogba, Acme Road, Wemco Road and surrounding areas.

Sahara Power said the facility will strengthen electricity infrastructure and improve power supply reliability within areas covered by the Ikeja Electric network.

Speaking at the groundbreaking ceremony, Group Managing Director of SPEG, Kola Adesina, said the project demonstrates the company’s commitment to delivering practical energy solutions.

“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 added that improving the availability and reliability of power will enhance productivity, growth and value creation.

The facility will deploy modern gas-powered generating technology aligned with established environmental, operational and safety standards.

The Acting Chief Executive Officer of Ikeja Electric Plc, Ogochukwu Onyelucheya, said the IPP represents an important step toward 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,” she stated.

Onyelucheya 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 in the designated areas.

Adesina commended the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission, LASERC, Ikeja Electric, Cummins and other stakeholders for supporting the project.

The Executive Chairman of Agege Local Government, Abdul-Ganiyu Obasa, said improved electricity supply will 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. Managing Director, Mark Oni-Okeke, said the company is delighted to partner with Sahara Power to accelerate socio-economic development through reliable and sustainable energy solutions.

He noted that the Ogba IPP forms part of SPEG’s broader efforts to deploy innovative solutions across Nigeria’s electricity value chain and strengthen energy infrastructure.

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

In June 2025, Sahara Power Group, in partnership with Crescendough Nigeria Limited, commissioned the 180MW Afam II Power Plant in Rivers State.

The project was conceived, managed and delivered in 16 months using predominantly Nigerian expertise.

The plant is fully operational and is expected to support electricity supply to homes, businesses and industries.

Officials said 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, while contributing to efforts to close the country’s power supply gap.