Transgrid Enerco Limited has completed the acquisition of a 60 percent controlling interest in Eko Electricity Distribution Company (Eko DisCo) in a transaction valued at about N360 billion.
The transaction, which was initially expected to close by April 2025, was finalised on December 30, making it one of the largest privately negotiated takeovers in Nigeria’s electricity distribution sector since the 2013 privatisation.
West Power & Gas Limited (WPG), the former core investor, had acquired the 60 percent stake in Eko DisCo for about $135 million during the 2013 power sector privatisation exercise.
Sources familiar with the transaction said Transgrid Enerco made an upfront cash payment of N180 billion, while the remaining N180 billion was secured through bank guarantees to provide deferred payment assurance to the sellers.
The cash payment was settled in two instalments: N150 billion was paid earlier in the week of the transaction’s completion, while the final N30 billion tranche was paid on December 30.
Final execution and signing of the transaction documents took place at the George Hotel, officially concluding months of negotiations and due diligence.
It was gathered that the parties involved were keen to close the deal ahead of the implementation of Nigeria’s revised capital gains tax regime, which is scheduled to take effect on January 1, 2026.
The acquisition stems from a Share Purchase Agreement (SPA) signed in January 2025 between Transgrid Enerco and WPG, the outgoing majority shareholder.
Distinct from Past DisCo Ownership Changes
Unlike several previous changes in electricity distribution company ownership in Nigeria, which were largely driven by loan defaults or regulatory enforcement actions, this transaction was purely a commercial and strategic acquisition.
Transgrid Enerco is a consortium of strategic and institutional investors focused on energy infrastructure development. Members include Stanbic IBTC Infrastructure Growth Fund (SIIF), North-South Power Company Limited (NSP), and Axxela Limited.
Implications for Eko DisCo
The consortium’s acquisition is expected to inject fresh capital and improve operational governance at Eko DisCo, which supplies electricity to southern Lagos and parts of Ogun State, areas with high commercial and industrial power demand.
The new owners are also expected to roll out performance enhancement programmes aimed at improving service reliability, accelerating metering deployment, and boosting overall customer satisfaction.
