Sahara Power Enterprises Group (SPEG) has commenced construction of a $12 million, 12MW Independent Power Plant (IPP) at the Ogba Undertaking of Ikeja Electric Plc in Lagos, in a new private-sector investment aimed at improving electricity supply to businesses and communities.
The project, which is expected to be completed in the first quarter of 2027, will consist of six 2MW gas-fired generating units. It is designed to provide more reliable and cost-effective electricity to industrial clusters, businesses, residential communities and public institutions in Ogba, Acme Road, Wemco Road and surrounding areas.
SPEG Group Managing Director, Kola Adesina, said at the groundbreaking ceremony that the investment reflected the company’s commitment to developing practical solutions to Nigeria’s electricity challenges.
He said improving the availability and reliability of electricity would support productivity, business growth and value creation.
The Acting Chief Executive Officer of Ikeja Electric, Ogochukwu Onyelucheya, described the project as a strategic step towards improving the quality, reliability and sustainability of electricity supplied to customers on the distribution network.
“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.
Proposed Design
The plant will deploy modern gas-powered generation technology designed to meet established environmental, operational and safety standards. Cummins West Africa Limited is undertaking construction of the facility.
Cummins West Africa Managing Director, Mark Oni-Okeke, said the company’s partnership with Sahara Power would help accelerate socio-economic development through more reliable and sustainable energy supply.
The project has received support from the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission (LASERC), Ikeja Electric, Cummins and other stakeholders
The Ogba IPP forms part of Sahara Power’s wider investments across Nigeria’s electricity value chain as private operators increasingly develop generation and embedded power projects to address gaps in grid supply.
The copany’s recent investments include the 180MW Afam II Power Plant in Rivers State, which Sahara Power Group and Crescendough Nigeria Limited commissioned in June 2025. The project was delivered in 16 months, with significant use of Nigerian expertise, and is now operational.
The new Ogba facility is expected to provide an additional source of electricity for customers within its designated service areas while reducing reliance on an increasingly constrained national grid.
