Odu’a signs 50MW IPP deal
In a move aimed at boosting industrial power, Odu’a Investment Company Limited has entered into a strategic partnership with Elektron Energy Development Strategies Limited to develop a 50-megawatt gas-fired Independent
In a move aimed at boosting industrial power, Odu’a Investment Company Limited has entered into a strategic partnership with Elektron Energy Development Strategies Limited to develop a 50-megawatt gas-fired Independent Power Plant (IPP) in Lagos.
The project, to be sited at the former Cocoa Industries Limited complex within the Ogba Industrial Estate in Ikeja, is expected to provide dedicated electricity to industrial and commercial users in the area, addressing persistent energy shortages that have constrained productivity.
Speaking at the signing ceremony, the Group Chairman of Odu’a Investment, Otunba Ashiru, said the initiative aligns with the company’s long-term mandate of driving economic growth and development across the South-West.
According to him, the project is not just about power generation but a strategic intervention to tackle chronic energy deficits affecting industries in the Ogba cluster.
“This 50-megawatt project is not simply a power plant. It is a statement of intent to solve critical economic challenges, particularly the energy constraints that have limited industrial growth for decades,” Ashiru said.
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He explained that the project would be executed through a Special Purpose Vehicle, with Elektron holding a 93 per cent equity stake, while Odu’a Investment retains seven per cent, alongside the option to inject additional funding as the project progresses.
Ashiru noted that Odu’a’s contribution includes an 8,190 square metre parcel of land at the project site, which forms part of its equity, as well as a 25-year lease arrangement to support long-term financing.
He added that the company would also receive a three per cent annual royalty on gross revenue from electricity sales, ensuring direct returns to its shareholders.
The chairman emphasised that the agreement includes safeguards to ensure timely execution, including provisions for rental payments on any unutilised land if the plant is not fully operational within a specified timeframe.
“We are committed to ensuring this does not become a white elephant project. The structure is designed to protect our assets while encouraging efficient delivery,” he said.
Ashiru further disclosed that a five-member steering committee would oversee the project, with Elektron nominating four members and Odu’a appointing one representative to provide strategic oversight.
The Chief Executive Officer of Elektron Energy Development Strategies Limited, Mr. Tola Talabi, described the partnership as a significant step toward improving power reliability in one of the South-West’s key industrial corridors.
“Reliable power remains the backbone of industrial development. No factory can operate efficiently, and no industrial hub can compete globally without stable electricity,” Talabi said.
He noted that the plant would reduce dependence on the unstable grid and eliminate the need for costly self-generation, enabling businesses to operate more efficiently and plan for growth.
Talabi added that the project would also create jobs, enhance productivity, and strengthen Lagos’ position as a leading commercial hub.
“This initiative is a practical solution with real economic impact. It reflects the future of power in Nigeria—targeted, reliable and designed around the needs of specific industrial clusters,” he said.
Also speaking, the Group Managing Director of Odu’a Investment, Mr. Abdulrahman Yinusa, said the project marks a defining step in driving industrial renewal and strengthening energy resilience in the region.
He said the partnership positions the company at the forefront of Nigeria’s evolving energy sector, while delivering long-term value for stakeholders.
The power plant is expected to be developed within 16 months, with a target of achieving commercial operations within 24 months after financial close.
Industry observers say the project underscores the growing role of decentralised and privately financed energy solutions in addressing Nigeria’s power deficits, particularly in key industrial zones.
