By. Majeed Salaam
Nigeria’s power sector is showing early signs of renewed confidence, and Sahara Power Group is positioning itself to take advantage of what it sees as a more stable and investable environment.
The company’s Group Managing Director, Mr. Kola Adesina, says stronger policy direction, improving liquidity and deeper cooperation among key players are reshaping prospects for electricity supply and long-term growth.
Speaking during a recent interview on the state of the industry, Mr. Adesina said that the sector is gradually moving away from survival mode towards planning for expansion. According to him, recent developments are beginning to restore confidence across the electricity value chain, from generation to distribution.
He attributed this shift to tighter coordination among the federal government, the Ministry of Power, regulators, operators, the Central Bank of Nigeria (CBN), commercial banks and development finance institutions. Mr. Adesina described the level of alignment as unprecedented and said it has created a foundation for efficiency and sustainability.
Nigeria’s electricity market has long struggled with liquidity shortages, ageing infrastructure and weak service delivery. Mr. Adesina noted that ongoing efforts to address legacy debts owed to generation companies and gas suppliers are easing some of the pressure that has held back investment for years. He said that the settlement of these obligations is a critical step towards restoring financial health across the sector.
Progress, he stated, is also being recorded in metering and service delivery. Closer engagement between regulators and operators is helping to optimise operations and improve reliability for end users, even as challenges remain.
Against this backdrop, Sahara Power is refining its growth strategy for 2026 and beyond. The group currently accounts for about 19 percent of Nigeria’s total power generation through subsidiaries such as Egbin Power Plc, First Independent Power Limited and Ikeja Electric. Mr. Adesina said that the company is working towards increasing dispatched generation capacity to between 6,500 megawatts and 7,000 megawatts.
A key part of that plan involves significant investment in both gas and renewable energy over the next three to five years. According to him, the goal is to deliver power that is affordable, reliable and sustainable for households and industries, while reducing exposure to fuel and operational risks.
Sahara Power is also preparing to launch a data centre to support its operational expansion. Mr. Adesina said that the facility would rely on real-time data analytics, predictive maintenance and strong cybersecurity systems. He explained that the data centre would work in collaboration with government agencies and system operators to improve transparency and efficiency across the sector.
Financing remains a sensitive issue for many power companies, but Mr. Adesina said that Sahara Power has maintained financial discipline despite sector-wide pressures. He disclosed that the group has already repaid the naira equivalent of $438 million, representing about 73 percent of its original $600 million loan. The loans, he said, are contractually due for full repayment in 2034 and are being serviced in line with agreed terms.
He acknowledged that liquidity challenges, including debts owed to Sahara Power and its gas suppliers, have tested the company’s resilience. As of March 31, 2025, these obligations were reconciled at N1.514 trillion. Mr. Adesina said that government intervention through legacy debt payments has been crucial and will support the full settlement of outstanding obligations to banks, gas suppliers and service providers.
This, he stated, will allow the group to accelerate its expansion plans with greater confidence.
Mr. Adesina aligned Sahara Power’s long-term outlook with the infrastructure agenda of President Bola Tinubu. He said recent policy direction, relative exchange rate stability, easing inflation and moderated interest rates have improved predictability for investors in the power sector.
Industry observers share this view. Data from the Nigerian Electricity Regulatory Commission (NERC) shows that more than 2.3 million meters have been deployed nationwide under the National Mass Metering Programme since 2020. The rollout is expected to narrow the metering gap, strengthen revenue collection and improve customer trust.
For Sahara Power, the coming years will be shaped by disciplined financing, technology-led operations and targeted investments across gas and renewables. Mr. Adesina said the company remains committed to supporting national development through reliable electricity, adding that a more coordinated sector offers an opportunity to finally turn long-standing plans into measurable progress for Nigerians.
