KEY POINTS
- Sahara Power plans to lift dispatched capacity to 7,000 megawatts.
- Policy reforms are improving investor confidence in the power sector.
- Debt repayment has eased pressure on operations and lenders.
Sahara Power, the electricity unit of Sahara Group controlled by Nigerian energy entrepreneur Tope Shonubi, plans to raise its dispatched generation capacity to between 6,500 megawatts and 7,000 megawatts within the next three to five years. The expansion hinges on policy stability and firmer market discipline as Nigeria’s power sector emerges from years of operational strain and financial uncertainty.
The plan reflects a broader push by the group to deepen its presence in gas-fired generation while scaling renewable energy projects. Power supply has shown signs of improvement after prolonged disruptions driven by weak cash flows, mounting debts and regulatory disputes. Industry participants say recent efforts to settle legacy obligations and improve coordination among regulators are beginning to restore confidence among lenders and investors who stepped back during years of turbulence.
Policy clarity supports expansion
Kola Adesina, managing director of Sahara Power, said clearer government policies have reduced uncertainty across the electricity value chain, allowing operators to plan investments with greater confidence. He said the company expects to reach the 6,500 to 7,000 megawatt range through a mix of thermal generation and clean energy projects over the medium term.
Alongside generation assets, Sahara Power is preparing to deploy a dedicated data center to support operations and system monitoring. The platform is expected to improve real-time visibility across plants and networks, which Adesina said is increasingly important as operators try to improve reliability and control costs in a market that remains fragile.
Reforms introduced under President Bola Tinubu have brought more predictable rules and closer coordination among ministries and regulators, according to Adesina. He said these changes are helping address issues that previously discouraged investment, including delayed payments, weak liquidity and uncertainty around tariffs. Operators are now better positioned to service debt and consider new projects.
Debt repayment steadies sector
Sahara Power has repaid $438 million, or approximately 73 per cent, of its $600 million loan, despite liquidity pressures that continue to affect the industry. The government’s programme to settle legacy debts remains central to easing strain on power producers, gas suppliers and lenders, while creating space for fresh capital. More stable foreign exchange conditions, moderating inflation and a clearer interest rate outlook are also helping firms plan further ahead.
At the consumer end, data from the Nigerian Electricity Regulatory Commission show more than 2.3 million meters have been deployed since 2020 under the National Mass Metering Programme. Operators say the rollout, combined with distribution upgrades and improved customer platforms, should help reduce losses and improve service delivery.
According to Billionaire Africa, Sahara Power accounts for approximately 19 per cent of Nigeria’s electricity generation. Its assets include Egbin Power Plc, First Independent Power Limited and Ikeja Electric. Sahara Group, founded in 1996 by Shonubi, Tonye Cole and Ade Odunsi, operates in more than 40 countries and employs over 4,000 people across energy and logistics.
Beyond power, the group plans to expand oil and gas operations, targeting crude production of 350,000 barrels per day within five years as it seeks a larger role in Nigeria’s energy supply.
