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

Africa's largest private power firm, Sahara Power Enterprises Group (SPEG), has begun building a 12MW Independent Power Plant (IPP) in Lagos. The $12 million project is set to bolster electricity infrastructure and boost power supply reliability in the areas it serves. Sahara Power Enterprises Group announced the development in a statement on August 27, 2026, which Nairametrics obtained.

Scheduled for completion in the first quarter of 2027, the project will consist of six 2MW gas-fired generating units. These units will supply dependable and cost-effective electricity to industrial zones, businesses, residential areas, and public institutions in Ogba, Acme Road, Wemco Road, and nearby neighborhoods.

Kola Adesina, the Group Managing Director of SPEG, emphasized during the groundbreaking ceremony that the project illustrates Sahara's dedication to delivering practical solutions that bolster Nigeria's energy future. Adesina highlighted that the facility will employ cutting-edge gas-powered generating technology, adhering to established environmental, operational, and safety standards.

He also acknowledged the Federal Government, Lagos State Government, Lagos State Electricity Regulatory Commission (LASERC), Ikeja Electric, Cummins, and other stakeholders for their support of the project. The Executive Chairman of Agege Local Government, Abdul-Ganiyu Obasa, stated that the improved electricity supply would foster a more dependable and affordable electricity source, aiding business expansion and economic development within the designated regions.

The Ogba IPP complements SPEG's other investments focused on enhancing electricity generation and supply across Nigeria. In June 2025, Sahara Power Group (SPG), in collaboration with Crescendough Nigeria Limited (CNL), inaugurated the 180MW Afam II Power Plant in Rivers State, underscoring the significance of private-sector investment in Nigeria's electricity sector.

The construction of the Ogba IPP further exemplifies Sahara Power's commitment to strengthening Nigeria's electricity value chain and amplifying access to reliable power.