Sahara Power Enterprises Group (SPEG), Africa’s largest private power business, has commenced construction of a 12-megawatt (MW) Independent Power Plant (IPP) at the Ogba Undertaking of Ikeja Electric Plc in Lagos.
The $12 million project is expected to strengthen electricity infrastructure and improve the reliability of power supply to businesses, industries, residential communities and public institutions within the area.SPEG disclosed this in a statement issued on Thursday, August 27, 2026.Set for completion in the first quarter of 2027, the plant will consist of six 2MW gas-powered generating units.
Once operational, it is meant to serve industrial zones, businesses, homes and public institutions in Ogba, Acme Road, Wemco Road and nearby neighborhoods.Speaking at the ceremony, SPEG Group Managing Director Kola Adesina framed the project as more than a construction milestone, calling it a demonstration of the company’s investment in Nigeria’s long-term energy needs and its push toward more efficient, sustainable power delivery. He argued that more reliable electricity access would translate into stronger productivity and economic growth.
The Acting Chief Executive Officer of Ikeja Electric Plc, Ogochukwu Onyelucheya, said the project represents an important step towards improving the quality, reliability and sustainability of electricity supply to customers. Onyelucheya said Ikeja Electric would continue to partner with investors and developers to introduce innovative solutions that improve customer experience and electricity supply across its network.
Adesina added that the plant will use modern gas-generation technology built to current environmental and safety standards, and thanked federal and Lagos state authorities, LASERC, Ikeja Electric, Cummins and other partners for backing the initiative.
Onyelucheya went on to describe the investment as one likely to support local business expansion and broader economic development in the areas it serves.
The Executive Chairman of Agege Local Government, Abdul-Ganiyu Obasa, said improved electricity supply would help create an enabling environment for businesses, attract investments and generate employment opportunities within the community.Cummins West Africa Limited is handling construction of the plant.
The firm’s Managing Director, Mark Oni-Okeke, said Cummins was glad to work with Sahara Power on a project he sees as advancing socio-economic development through dependable, sustainable energy.
The Ogba plant is the latest in a series of SPEG investments aimed at expanding power generation and supply across Nigeria, and is expected to contribute toward narrowing the country’s electricity supply gap.
Hadizat Giwa