Odu’a Investment, Elektron Energy to build $40 million Lagos power plant

Odu’a Investment Company Limited and Elektron Energy are teaming up to develop a $40 million, 50-megawatt gas-fired independent power plant in Lagos, underscoring a growing shift toward localized energy solutions in Africa’s largest commercial hub.

The project, located within the Ogba Industrial Estate at the former Cocoa Industries complex, is designed to supply dedicated electricity to manufacturers long burdened by unreliable grid power and rising diesel costs.

Cutting costs for manufacturers

The plant will operate through a special purpose vehicle, combining Odu’a’s regional investment footprint with Elektron’s embedded power expertise. By delivering electricity directly to industrial users, the initiative bypasses Nigeria’s fragile national grid, an enduring bottleneck for productivity.

For manufacturers, the implications are immediate: lower operating costs and improved efficiency. Many businesses in Lagos currently rely on self-generation year-round, significantly inflating production expenses and weakening competitiveness.

Executives signal long-term vision

Odu’a Investment Chairman Otunba Bimbo Ashiru framed the project as a cornerstone of Odu’a’s infrastructure strategy, emphasizing its role in driving industrial growth and energy security across southwestern Nigeria.

Elektron’s co-founder and co-CEO, Tola Talabi, positioned the plant as more than a power asset. Instead, he described it as “enabling infrastructure” tailored to unlock economic activity in one of Lagos’ most commercially dense corridors.

Group Managing Director Abdulrahman Yinusa added that the partnership places Odu’a at the center of Nigeria’s evolving energy landscape, where private-sector-led solutions are increasingly filling gaps left by public utilities.

A broader energy shift

Founded in 1976 and owned by Nigerian  six southwestern states, Odu’a Investment has steadily expanded across sectors from real estate to agribusiness, with energy now emerging as a core growth pillar.

Elektron Energy, founded by Tola Talabi established in 2011, has built a reputation for pioneering embedded power systems, including projects like Victoria Island Power, Nigeria’s first privately led distribution model.

The Ogba plant reflects a broader trend: decentralized, gas-fired and embedded power projects are gaining traction as Nigeria seeks to stabilize electricity supply and support industrialization.