Sahara Power maps growth strategy for 2026 as reforms lifts power sector outlook

Nigeria’s power sector is gradually repositioning for growth and stability, supported by policy reforms, improving liquidity and expanding collaboration among key stakeholders, the Group Managing Director of Sahara Power Group, Kola Adesina, has said.

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Speaking during an interview on the state of the electricity industry and opportunities ahead, Mr Adesina said the sector was beginning to see the impact of reform-inspired investment, technology adoption and coordinated action across the value chain.

He expressed confidence that Nigeria would overcome longstanding challenges and emerge as a transformational power hub on the African continent.

According to him, collaboration among the federal government, the power ministry, regulators, operators, the Central Bank of Nigeria (CBN), commercial banks and multilateral development partners has reached an unprecedented level.

He said the growing alignment of interests is expected to continue into 2026, driving efficiency, sustainability and improved electricity supply for consumers.

Mr Adesina commended the federal government’s intervention in addressing liquidity constraints through the ongoing developments around the settlement of legacy debts, describing the initiative as a critical enabler of new investments and long-term sector stability.

He added that progress had also been recorded in metering and service delivery, noting that closer cooperation between regulators and operators was helping to optimise the value chain and improve supply reliability for end-users.

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“We are witnessing unprecedented collaboration involving the Federal Government, Power Ministry, Regulatory Agencies, Power Entities, CBN, Banks and multilateral financial and development agencies, and other stakeholders in the power sector. We believe that this trend will continue in 2026 and this will spur sector-wide growth that will translate to greater efficiency, sustainability and more power for Nigerians,” he said.

He said the industry is expected to witness far-reaching distribution network reforms, including large-scale infrastructure rehabilitation, deployment of advanced metering infrastructure and improved customer relationship management systems. These measures, he noted, would help reduce aggregate technical, commercial and collection losses while showcasing more efficient business models across the sector.

Mr Adesina reaffirmed Sahara Power Group’s commitment to supporting national development through reliable electricity, stressing that the company remains a key player in the market, accounting for about 19 per cent of total power generation in Nigeria through its subsidiaries, including Egbin Power Plc, First Independent Power Limited and Ikeja Electric.

He disclosed that Sahara Power is working towards increasing dispatched generation capacity to between 6,500 megawatts and 7,000 megawatts, while also pioneering the launch of a data centre to support operational expansion and innovation. The group, he said, plans to invest heavily in gas and renewable energy sources over the next three to five years to deliver affordable and sustainable power to households and industries.

On financing, Mr Adesina said the group is in constructive discussions with its lending banks, adding that existing loans due for full repayment in 2034 are being serviced in line with agreed terms.

He revealed that Sahara Power has already paid the naira equivalent of $438 million dollars, representing about 73 per cent of its original $600 million loan, despite liquidity pressures in the sector.

He expressed appreciation for the government’s ongoing legacy debt payments, saying they would support the full settlement of obligations to banks, gas suppliers and service providers, and enable the group to accelerate its growth plans.

Mr Adesina also aligned Sahara Power’s long-term strategy with the infrastructure agenda of President Bola Tinubu, noting that recent policy reforms, relative exchange rate stability, easing inflation and moderated interest rates have improved predictability for investors in the power sector.

He noted that Sahara Power will invest heavily in both gas and renewable sources to achieve additional generation capacity within the next three to five years, with the goal being “sustainable, affordable, and reliable power for households and industries.”

He said the data centre will leverage real-time data analytics, predictive maintenance, and cybersecurity, working alongside the Federal Government and system operators to enhance overall sector efficiency and transparency.

“At Sahara, our dedication to the power sector is unwavering as clearly demonstrated by our ambitious investments and sector leadership over the years. We will pursue strategic investments, continuing expansion and tech-led operations to ensure we serve our customers with precision, transparency and excellence.

On the state of power loans, Mr Adesina said promising conversations with the consortium of banks involved in the process are ongoing with a positive end in sight.

According to him, the loans which are contractually due for full payment in 2034, are being “serviced diligently in keeping with all agreed terms” as “this discipline allows us to attract further investment and execute our expansion plans.”

He said: “Our successes at Sahara are built on a foundation of financial integrity. From inception to date, we have paid the naira equivalent of $438 million (total debt serviced) which is 73 per cent of the original loan of $600 million. This was achieved in spite of huge liquidity issues in the sector, especially the debts owed to Sahara and our gas suppliers which as of March 31st 2025 was reconciled to stand at N1.514 trillion.

“We are grateful for the government’s intervention through the ongoing legacy debt payments which will facilitate full settlement of all outstanding loans to the banks, our obligations to our gas suppliers, technical service providers (operations and maintenance services) etc. We are confident that the loans will be sorted out completely as we are eager to accelerate our growth plans.

“We have done a series of scenario planning and will anchor our strategic objective on the bold, clear-sighted, long-term oriented infrastructure plan of President Bola Ahmed Tinubu. Mr President has demonstrated courage in confronting age-long bottlenecks, clearing the way for investor confidence thereby engendering significant growth and development of the power sector and Nigeria’s economy in general.

“With clear positive policy reforms in the sector, stability in the exchange rate, significant reduction in inflation rate and the associated moderated interest rate, we as well as other investors in the sector can now easily plan with a higher sense of predictability and conviction.”

Industry experts have similarly observed that the federal government’s legacy debt resolution programme for generation companies and gas suppliers is helping to stabilise the electricity value chain and restore investor confidence.

Data from the Nigerian Electricity Regulatory Commission show that more than 2.3 million meters have been deployed nationwide under the National Mass Metering Programme (NMMP) since 2020.

This development is expected to narrow the metering gap and strengthen revenue assurance for operators.