Sahara Power Begins Construction of $12m 12MW Lagos Power Plant
Sahara Power Enterprise Group has commenced construction of a 12-megawatt gas-fired Independent Power Plant in Lagos, marking a fresh investment aimed at improving electricity supply for businesses, communities and other electricity consumers within the Ogba axis.
The project, valued at about $12 million, is being developed at the Ogba Undertaking of Ikeja Electric Plc and is expected to be completed in the first quarter of 2027.
According to Sahara Power, the project will be developed as a six-unit gas-fired plant, with each unit contributing about two megawatts of generation capacity.
The new facility is expected to serve businesses and communities across Ogba, Acme Road, Wemco Road and other surrounding locations.
The Sahara Power 12MW Lagos power plant is also expected to support industrial clusters, commercial centres, residential communities and public institutions within the area.
The project comes as businesses in Nigeria continue to seek more reliable electricity supply amid concerns about the cost and availability of power.
Project Targets Improved Electricity Supply
Sahara Power said the new facility represents part of its broader effort to support improvements in Nigeria’s electricity sector.
Speaking at the groundbreaking ceremony, the Group Managing Director of Sahara Power Enterprise Group, Kola Adesina, said the project was designed to contribute to the delivery of more dependable and efficient electricity.
He said improved power availability could support productivity, business growth and wider economic development.
Reliable electricity remains a major requirement for businesses, particularly manufacturers and small and medium-sized enterprises that often depend on alternative power sources when public supply is unreliable.
The development of independent power projects has therefore become increasingly important as investors and electricity distribution companies explore different ways to improve energy access.
The new plant is expected to provide an additional source of electricity for customers within the designated coverage area.
Six-Unit Plant to Include Standby Capacity
Sahara Power said the facility would use modern gas-powered generation technology designed to meet environmental, operational and safety requirements.
The six-unit configuration will also include standby capacity.
This is expected to support continuity of electricity supply when individual generating units require maintenance or temporary servicing.
The inclusion of standby capacity could help reduce the risk of complete supply interruptions during operational activities.
For businesses and communities that depend on regular electricity, reliability can be just as important as the amount of power generated.
The company said the project reflects continued investment in infrastructure designed to improve the reliability of electricity supply and support economic activity.
Ikeja Electric Welcomes New Investment
The Acting Chief Executive Officer of Ikeja Electric, Ogochukwu Onyelucheya, described the project as an important development in efforts to improve the quality, reliability and sustainability of electricity supplied to customers.
She said the new plant would provide a more dependable and potentially cost-effective source of electricity for businesses and communities within the designated areas.
According to her, the project could also support economic activity and create employment opportunities.
Onyelucheya said the investment demonstrated the importance of strategic partnerships in developing sustainable energy solutions.
She added that Ikeja Electric remained focused on working with investors and developers capable of introducing innovative approaches to improving customer experience and electricity supply across its network.
The partnership between Sahara Power and Ikeja Electric highlights the growing role of collaboration between power generation investors and electricity distribution companies.
Cummins to Handle Construction of the Plant
Construction of the power plant will be undertaken by Cummins, a company with experience in power generation and energy infrastructure.
The project is expected to draw on the company’s technical expertise in delivering the six-unit gas-fired generation facility.
The Managing Director of Cummins West Africa Limited, Mark Oni-Okeke, said the company was pleased to work with Sahara Power on the project.
He said the partnership was expected to contribute to sustainable socio-economic development.
The involvement of specialised energy infrastructure companies will be critical to ensuring that the project is delivered according to the planned timeline.
With completion targeted for the first quarter of 2027, attention will now focus on construction progress and the eventual integration of the plant into the electricity supply system serving the Ogba area.
Community Leaders Expect Economic Benefits
The project has also received support from local stakeholders.
The Executive Chairman of Agege Local Government, Abdul-Ganiyu Obasa, said independent power projects could play an important role in supporting energy security and sustainable development.
He noted that improved electricity supply could create a more favourable environment for businesses to expand, attract investment and generate employment.
The project is expected to benefit commercial and industrial activities within the Ogba axis, where businesses require reliable power to maintain operations.
The Ologba of Ogbaland, Oba Egbeyemi Oladimeji, also welcomed the investment and expressed optimism about its expected impact on the community.
Boost for Businesses and Communities
The Sahara Power 12MW Lagos power plant could provide a significant boost to economic activity within the communities expected to benefit from the project.
Access to more reliable electricity can help businesses reduce dependence on alternative power sources, including generators.
It can also support productivity and improve the operating environment for commercial enterprises.
For residential communities and public institutions, improved electricity reliability could also enhance daily activities and service delivery.
The project reflects growing interest in decentralised and independent power solutions as Nigeria continues to search for practical ways to address long-standing electricity challenges.
With construction now underway, Sahara Power and its partners will be expected to deliver the project within the proposed timeline.
If completed as scheduled, the 12MW facility could begin contributing to improved electricity supply across Ogba and surrounding communities from the first quarter of 2027.
The project represents another example of how private investment and strategic partnerships are increasingly being positioned as part of the effort to strengthen Nigeria’s electricity infrastructure and support economic growth.
