Six Gas Units Set to Add 12MW to Ogba Power Supply in Lagos

Sahara Power Enterprise Group has started construction of a 12MW gas-fired power plant in Ogba, Lagos, with six generating units set to supply electricity to businesses, industries, homes and public institutions in the area.

The $12 million Independent Power Plant (IPP), being built at the Ogba Undertaking of Ikeja Electric Plc, is scheduled for completion and commissioning in the first quarter of 2027.

The project will use six generating units, each producing 2MW, giving a combined capacity of 12MW. The electricity will serve Ogba, Acme Road, Wemco Road and nearby areas.

The project gives Ikeja Electric additional generation capacity within its network and is intended to provide a more reliable and cost-effective source of electricity for users in the affected areas.

The development was announced at the groundbreaking ceremony for the plant in Ogba, where Sahara Power Enterprise Group Group Managing Director, Kola Adesina, said the investment was part of the company's response to Nigeria's electricity problems through infrastructure development.

Adesina said the project went beyond the construction of another generating plant and represented the company's commitment to Nigeria's energy future.

“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,” he said.

The plant will use modern gas-powered generating technology designed to meet established environmental, operational and safety standards.

Sahara Power also acknowledged the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission, Ikeja Electric, Cummins and other stakeholders for their support for the project.

Units to serve major business areas

The size and location of the plant give the project a direct focus on electricity supply within parts of Lagos where commercial and industrial activities are concentrated.

The six 2MW units will provide a total of 12MW once the plant is commissioned. The power is intended for customers in Ogba, Acme Road, Wemco Road and surrounding areas.

Acting Chief Executive Officer of Ikeja Electric Plc, Ogochukwu Onyelucheya, said the project would provide a dependable and cost-effective electricity source and support business expansion and economic development in the areas covered.

“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. SPEG’s investment in this IPP demonstrates the value of strategic collaboration in creating sustainable energy solutions for our customers,” Onyelucheya said.

The plant is also intended to reduce pressure on existing electricity supply sources within the Ikeja Electric network by providing dedicated generation capacity.

The project is expected to improve operating conditions for businesses, through more reliable electricity supply. The data supplied for the project identifies businesses that depend heavily on electricity for production and services as major beneficiaries.

Executive Chairman of Agege Local Government, Abdul-Ganiyu Obasa, said better electricity supply could help create conditions for businesses to operate, attract new investments and generate jobs within the community.

He also pointed to the cost faced by small and medium-sized businesses that depend heavily on alternative electricity sources.

The plant's construction is being handled by Cummins West Africa Limited, which is responsible for deploying the generating technology.

Managing Director of Cummins West Africa Limited, Mark Oni-Okeke, said the company was pleased to partner with Sahara Power on the project.

He stressed the importance of reliable and sustainable electricity to Nigeria's socio-economic development and said the partnership showed how technology and private investment could help address energy infrastructure needs.

The project has also received support from the traditional institution in Ogbaland.

The traditional ruler of Ogbaland, HRM Oba Egbeyemi Latif Oladimeji, expressed appreciation to Sahara Power for locating the project in the community and pledged the support of the palace and residents.

According to the group, the investment is meant to shore up energy infrastructure and help address the shortfall in electricity.