Sahara Power Enterprise Group has begun construction of a $12 million, 12-megawatt gas-fired Independent Power Plant in Ogba, Lagos, as private investment accelerates efforts to improve electricity supply in one of Nigeria’s key commercial and industrial areas.

The project, being developed within the Ogba undertaking of Ikeja Electric, is expected to be completed in the first quarter of 2027. The plant will consist of six gas-fired generating units, each capable of producing 2 MW.

Once operational, the facility is expected to supply electricity to industrial clusters, businesses, residential communities and public institutions across Ogba, Acme Road, Wemco Road and surrounding areas.

Sahara Power says the project is designed to provide a more reliable and cost-effective source of electricity while supporting productivity, business expansion and economic activity in the area.

Ikeja Electric has described the investment as a strategic step towards improving the quality, reliability and sustainability of electricity supply to customers on its network.

The plant will be built by Cummins West Africa and will use modern gas-powered generation technology designed to meet established environmental, operational and safety standards.

The investment comes as Nigeria continues to face persistent electricity supply challenges, with businesses and households often relying on alternative power sources to maintain operations.

For Lagos, the project could provide additional generation capacity to a densely populated and economically important corridor where reliable electricity is critical to manufacturers, small businesses and commercial activity.

Sahara Power says the Ogba project forms part of its broader strategy to strengthen Nigeria’s electricity infrastructure and develop solutions across the power value chain.

With completion targeted for early 2027, the project highlights the growing role of private investment in Nigeria’s efforts to expand reliable electricity supply and support economic growth.