Transgrid Completes Acquisition of 60% Stake in Eko Disco for N360bn

Emmanuel Addeh in Abuja

Transgrid Enerco Limited has completed its acquisition of a 60 per cent controlling stake in Eko Electricity Distribution Company (EKEDC) in a deal valued at approximately N360 billion, a report by Nairametrics said yesterday.

The transaction, which was expected to close by April 2025, was however finalised on December 30, marking one of the largest privately negotiated takeovers in Nigeria’s power distribution sector since the 2013 privatisation exercise.

Transgrid Enerco is a strategic alliance formed by North South Power Company Limited (NSP), Axxela Limited, and the Stanbic IBTC Infrastructure Growth Fund (SIIF).

Eko Disco currently serves the southern part of Lagos State and the Agbara community in Ogun State, regions seen as critical to Nigeria’s industrial and commercial growth.

The new owners plan to modernise the power firm’s operations, enhance customer service, and expand its electricity distribution capacity from 513MW to 1,500MW within the next few years.

In January, during the signing ceremony, the Chairman of Transgrid Enerco, Mr. Olubunmi Peters, emphasised the significance of the milestone, describing it as a commitment to addressing Nigeria’s energy challenges.

West Power & Gas Limited (WPG), the former core investor, had acquired the 60 per cent stake in Eko Disco for about $135 million during the 2013 power sector privatisation exercise.

However, it was learnt that 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 installments, with N150 billion paid earlier in the week of the transaction’s completion, while the final N30 billion tranche was paid on December 30.

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.

Unlike several previous changes in electricity distribution company ownership in Nigeria, which were largely driven by loan defaults or regulatory enforcement actions, the extant transaction was purely a commercial and strategic acquisition, it was gathered.

The consortium’s acquisition is expected to inject fresh capital and improve operational governance at Eko Disco, while the new owners are also expected to roll out key performance  programmes aimed at improving service reliability.

The deal will see the new owners integrating renewable energy solutions such as solar and hydropower, as the company aims to set a new benchmark for efficiency and environmental responsibility in the power sector.

The Disco remains one of the most commercially viable utility companies in Nigeria due to its urban, high-density customer base and relatively strong revenue collection rate.