Sahara Power targets 7,000MW as FG clears legacy debts
Sahara Power Group is targeting 6,500MW to 7,000MW dispatched generation capacity as Nigeria's power sector sees renewed reform momentum. Group Managing Director Kola Adesina announced this while highlighting ongoing collaboration between Federal Government, power ministry, regulatory agencies, banks, and multilateral development partners.
The Federal Government's settlement of legacy debts owes to Generation Companies (GenCos) and gas suppliers is driving new investments. Sahara Power has serviced 73% of its $600 million original loan, paying ₦438 million equivalent despite sector-wide liquidity challenges. As of March 31, 2025, debts owed to Sahara and its gas suppliers stood at N1.514 trillion.
Sahara Power, which generates about 20% of Nigeria's total electricity through subsidiaries like Egbin Power (sub-Saharan Africa's largest thermal plant) and Ikeja Electric, plans heavy investments in both gas and renewable sources over the next three to five years. The company is also launching a data centre for real-time analytics, predictive maintenance, and cybersecurity to enhance sector efficiency.
Infrastructure reforms include Advanced Metering Infrastructure deployment, Customer Relationship Management systems to reduce ATC&C losses, and network rehabilitation projects. NERC reports over 2.3 million meters deployed under National Mass Metering Programme since 2020.
With government clearing bottlenecks and macroeconomic stability improving (exchange rate stabilization, inflation reduction), investors now plan with greater predictability. Will these reforms deliver the reliable power needed for industrial growth and household development? Or will persistent liquidity challenges continue to constrain progress?