…New gas-fired independent power project targets businesses, communities and public institutions across Ogba, Acme Road, Wemco Road and surrounding area
L-R, Anthony Youdeowei, Managing Director, Sahara Power Enterprise Group; Olajide Kumapayi, Chief Operating Officer, Ikeja Electric; Kola Adesina, Group Managing Director, Sahara Power Enterprise Group; Bunmi Fafiyebi, Project Manager, Sahara Power Enterprise Group; Hon Abdul-Ganiyu Vinod Obasa, Executive Chairman, Agege Local Government; HRM. Oba Egbeyemi Latif Oladimeji, Ologba of Ogbaland and Mark Oni-Okeke, Managing Director Cummins West Africa Ltd. during the groundbreaking ceremony of 12MW Independent Power Plant at Ogba, Lagos on Thursday , 27 August, 2026.
LAGOS, Nigeria— Sahara Power Enterprise Group (SPEG) has commenced construction of a 12-megawatt (MW) gas-fired Independent Power Plant (IPP) in Lagos, in a move expected to strengthen electricity supply to one of Nigeria’s busiest industrial and commercial corridors.
The project, located within the Ogba Undertaking of Ikeja Electric Plc, is scheduled for completion in the first quarter of 2027. It is designed to provide a more reliable and predictable source of electricity for businesses, manufacturers, small and medium-sized enterprises (SMEs), retailers, residential communities and public institutions across Ogba, Acme Road, Wemco Road and adjoining areas.
The investment comes as Lagos continues to experience strong demand for electricity driven by industrialisation, population growth and the expansion of commercial activity. For businesses operating in energy-intensive sectors, unreliable electricity supply remains a significant constraint on productivity, operating costs and investment.
Power reliability at the centre of project
SPEG said the new plant is intended to reduce supply constraints and improve the reliability and availability of electricity within Ikeja Electric’s network.
The plant will deploy modern gas-fired generating technology and comprise six generating units, a configuration designed to provide operational flexibility and improve continuity of supply during scheduled maintenance or when individual units are unavailable.
The company said the project is expected to create a more stable electricity supply environment for enterprises and communities, potentially enabling businesses to improve operating efficiency, expand production and reduce their dependence on alternative sources of power.
Speaking at the groundbreaking ceremony, Kola Adesina, Group Managing Director of Sahara Power Enterprise Group, said the investment was part of the company’s broader effort to develop practical responses to Nigeria’s electricity challenges.
“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. Improving the availability and reliability of power will enhance productivity, growth, and value creation,” Adesina said.
He said the plant would address the needs of a strategically important commercial and industrial corridor where dependable electricity is essential to business expansion and community development.
Boost for Lagos businesses and industrial activity
The economic significance of the project extends beyond electricity generation. More dependable power can help businesses reduce the cost and operational uncertainty associated with running diesel- and petrol-powered generators, while giving manufacturers and other commercial users greater certainty in planning production.
For Lagos, Nigeria’s principal commercial centre and one of Africa’s largest urban economies, electricity reliability is closely linked to industrial competitiveness, investment and job creation.
SPEG said the project is therefore intended not simply as an addition to generation capacity, but as targeted energy infrastructure capable of supporting economic activity within a defined distribution network.
Ogochukwu Onyelucheya, Acting Chief Executive Officer of Ikeja Electric Plc, said the project would contribute to the company’s efforts to improve the quality, reliability and sustainability of electricity delivered 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 said.
She added that the project would provide a more dependable and cost-effective source of electricity to businesses and communities in the designated areas while supporting economic activity and employment.
Public-private collaboration
The development of the plant involves collaboration among government institutions, electricity industry stakeholders, the host community and private-sector investors.
Adesina commended the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission (LASERC), Ikeja Electric, Cummins and other stakeholders for their support.
The Engineering, Procurement and Construction (EPC) contract will be executed by Cummins, bringing its international power-generation engineering and technology expertise to the project.
Mark Oni-Okeke, Managing Director, Cummins West Africa Limited, said the company was pleased to partner with Sahara Power on the initiative, describing the collaboration as an opportunity to accelerate sustainable socioeconomic development through reliable power infrastructure.
Community support
The project has also received support from local authorities and community leadership.
Abdul-Ganiyu Obasa, Executive Chairman of Agege Local Government, said independent power projects were important to improving energy security and supporting sustainable economic development.
“Independent power projects such as this are essential to achieving energy security and sustainable development. Improved electricity supply will create an enabling environment for businesses to grow, attract investment and create employment opportunities for our people,” he said.
The Ologba of Ogbaland, HRM Oba Egbeyemi Latif Oladimeji, also welcomed the project, thanking Sahara Power for locating the investment in Ogba.
“You have the support of the Palace and good people of Ogba and its environs. We are eagerly looking forward to the commissioning of the plant and positive impact on our community,” he said.
Part of wider energy investment strategy
The 12MW facility forms part of Sahara Power’s broader strategy of deploying targeted energy infrastructure to improve electricity access and reliability across Nigeria.
The project also reflects the growing role of distributed and embedded power generation in addressing electricity supply challenges in major Nigerian commercial and industrial centres. Rather than relying solely on large-scale generation and long-distance transmission, such projects can place generation closer to areas with concentrated electricity demand.
For businesses in the Ogba-Acme-Wemco industrial corridor, the key measure of the project’s success will ultimately be whether it translates into more consistent electricity, lower energy-related operating costs and improved capacity to invest and expand.
With construction now under way and commissioning targeted for the first quarter of 2027, stakeholders expect the 12MW plant to become an important addition to Lagos’ evolving electricity infrastructure and a potential catalyst for increased commercial and industrial activity in the surrounding communities
