Sahara Power Enterprise Group has begun construction of a $12 million, 12-megawatt gas-fired power plant in Ogba, Lagos, in a project aimed at improving electricity supply to businesses and communities in the area.
The independent power plant, located within the Ogba Undertaking of Ikeja Electric, will comprise six 2MW generating units and is scheduled for completion in the first quarter of 2027.
The facility is expected to serve industrial clusters, commercial centres, residential communities and public institutions across Ogba, Acme Road, Wemco Road and surrounding areas.
The project comes as businesses in Nigeria continue to contend with unreliable electricity supply and the high cost of generating their own power.
Kola Adesina, group managing director of Sahara Power Enterprise Group, said the investment was part of the company’s efforts to develop practical solutions to challenges in Nigeria’s electricity sector.
“Improving the availability and reliability of power will enhance productivity, growth, and value creation,” Adesina said at the groundbreaking ceremony.
According to Sahara, the plant will use gas-powered generation technology and include standby capacity to support continuity of supply during maintenance periods.
Ogochukwu Onyelucheya, acting chief executive officer of Ikeja Electric, said the project would provide a more dependable and cost-effective source of electricity for businesses and communities within the designated areas.
She said the investment would also support economic activity and job creation while improving the quality and reliability of electricity supply to customers in the Ogba Undertaking.
Construction of the power plant will be handled by Cummins West Africa.
For businesses in the affected areas, the value of the project will ultimately depend on whether the additional generation translates into more reliable supply and reduces the need for expensive alternative power sources. The Ogba project also adds to growing private-sector investment in electricity infrastructure as companies pursue localised solutions to Nigeria’s persistent power supply challenges.
