OICL, Elektron Partner on 50MW Power Project to Boost Lagos Industrial Output
In a decisive move to tackle persistent power constraints in Nigeria’s commercial capital, Odu’a Investment Company Limited (OICL) has entered into a strategic partnership with Elektron Energy Development Strategies Limited to develop a 50-megawatt (MW) gas-fired Independent Power project Plant (IPP) within the Ogba Industrial Estate in Ikeja, Lagos.
This follows a formal signing ceremony, held on Thursday at Odu’a Investment Company’s liaison office at Western House in Lagos.
The project, sited at the former Cocoa Industries Limited (CIL) complex, is designed to deliver dedicated and reliable electricity directly to industrial and commercial clusters in Ogba—one of Lagos’ most commercially active corridors.
By bypassing the volatility of the national grid, the initiative is expected to significantly reduce reliance on costly and inefficient self-generation among businesses.
Structured through a jointly established Special Purpose Vehicle (SPV), the partnership combines Elektron’s technical, regulatory, and commercial expertise with Odu’a Investment Company’s regional investment depth and long-term capital base.
The model underscores a growing shift towards decentralised and embedded energy solutions in Nigeria’s evolving electricity market.
Industrial Competitiveness and Energy Security
Industry stakeholders have long identified erratic power supply as a major constraint to productivity and competitiveness. The Ogba IPP seeks to directly address this challenge by ensuring consistent power availability for manufacturers, service providers, and other enterprises within the cluster.
Speaking at the ceremony, Otunba Bimbo Ashiru, Group Chairman of Odu’a Investment Company, described the project as a cornerstone of the firm’s infrastructure investment strategy.
“This landmark project represents a significant step in our long-term commitment to critical infrastructure that drives economic growth, industrial productivity, and sustainable development across South-West Nigeria and beyond,” he said. “It is a strategic catalyst for industrial revitalisation, enhanced energy security, and sustainable economic expansion.”
Echoing this perspective, Mr Tola Talabi, Founder and Co-Chief Executive Officer of Elektron Energy Development Strategies Limited, emphasised the broader economic philosophy underpinning the project.
“At Elektron, we do not see power as standalone generation but as enabling infrastructure for economic activity,” Talabi said. “The Ogba IPP is a targeted intervention—delivering reliable, scalable, and bankable power where it is needed most. This is how we strengthen industrial productivity, reduce energy costs, and build regional resilience.”
Economic Impact Beyond Power Supply
Beyond stabilising electricity supply, the project is expected to generate significant multiplier effects across the local economy. During both construction and operational phases, the IPP will create jobs, stimulate ancillary services, and improve overall business efficiency within the industrial hub.
Mr Abdulrahman Yinusa, Group Managing Director of Odu’a Investment Company, noted that the initiative positions the conglomerate at the forefront of Nigeria’s energy transition.
“This marks a defining step in driving industrial renewal and advancing sustainable growth in the Southwest,” Yinusa said. “Our collaboration with Elektron demonstrates how strategic partnerships can deliver lasting value to stakeholders while supporting national development priorities.”
Analysts say such embedded generation projects could play a critical role in bridging Nigeria’s power deficit, particularly in high-demand industrial zones where grid reliability remains a concern.
A Model for Nigeria’s Power Future
The Ogba IPP reflects a broader trend towards decentralised power solutions tailored to specific economic clusters. By aligning generation capacity with local demand, such projects offer a more efficient and financially viable alternative to traditional grid expansion.
Talabi described the initiative as emblematic of the future direction of Nigeria’s energy sector.
“This model—targeted, reliable, and cluster-focused—is the future of power in Nigeria,” he said. “With consistent electricity, businesses can plan with confidence, scale operations, and compete more effectively.”
High-Profile Stakeholder Engagement
The signing ceremony attracted prominent figures from Nigeria’s corporate and investment landscape. Attendees included Dr Demola Sogunle, Chairman of Stanbic IBTC Pension; Mr Olawale Moronkeji, Chief Operating Officer of Phillips Consulting; and Mr Irawola Ayodeji, Chairman of Aggregate Utilities, alongside board members and subsidiary executives of Odu’a Investment Company.
