Sahara Power begins construction of $12 million power plant in Lagos

Sahara Power Enterprise Group (SPG), the power arm of Sahara Group, has started construction of a $12 million Independent Power Plant in Ogba, Lagos, as the company seeks to improve electricity supply to businesses, industries, residential communities and public institutions.

The 12MW plant will comprise six generating units, each capable of producing 2MW. The facility is designed to provide more reliable and cost-effective electricity to customers in Ogba, Acme Road, Wemco Road and surrounding communities.

The gas-fired plant is being developed at the Ogba Undertaking of Ikeja Electric and is expected to be completed in the first quarter of 2027. The project will add dedicated generation capacity to the Ikeja Electric network, potentially easing pressure on existing electricity sources while supporting commercial and industrial activity across one of Lagos’ key business corridors.

Sahara Power expands generation portfolio

At the groundbreaking ceremony, Kola Adesina, group managing director of Sahara Power Enterprise Group, said the investment reflects the company’s focus on addressing Nigeria’s electricity challenges through infrastructure development.

“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.” Adesina said greater power availability and reliability would support productivity, economic growth and value creation.

The plant will use modern gas-powered generation technology designed to meet environmental, operational and safety standards. Adesina acknowledged the support of the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission, Ikeja Electric, Cummins and other stakeholders.

Sahara Group’s power assets

Sahara Power Enterprise Group is the power subsidiary of Sahara Group and describes itself as the largest privately owned vertically integrated power company in Sub-Saharan Africa. Sahara Group, founded in 1996 and co-founded by Tope Shonubi, operates across oil and gas, power and infrastructure in multiple countries.

Its portfolio includes Egbin Power Plc., described by the company as the largest thermal power plant in Sub-Saharan Africa excluding South Africa, as well as the Afam, Eleme, Trans Amadi and Omoku plants. The company has targeted generation capacity of more than 5,000MW.

Sahara Power acquired majority stakes in two Power Holding Company of Nigeria assets during the government’s power-sector privatization program: Egbin Power and Ikeja Electric. It also acquired a 70% stake in First Independent Power Limited, strengthening its position in Nigeria’s power-generation market and its strategy of developing power solutions across Africa.