Transgrid Enerco Limited has completed its acquisition of a 60% controlling stake in Eko Electricity Distribution Company in a deal valued at approximately N360 billion.
This is according to multiple sources familiar with the matter who spoke exclusively to Nairametrics.
The transaction, which was expected to close by April 2025, was finalized December 30th, marking one of the largest privately negotiated takeovers in Nigeria’s power distribution sector since the 2013 privatisation exercise.
WPG reportedly paid $135 million to acquire 60% of the core assets of the distribution company from the government during the privatization of the electricity sector in 2013.
What they are saying
According to sources with direct knowledge of the deal, Transgrid Enerco made an initial cash payment of N180 billion, while the balance of N180 billion is secured through bank guarantees, ensuring deferred settlement assurance for the sellers.
The N180 billion cash component was paid in two tranches:
- N150 billion was paid earlier in the week of closure.
- N30 billion was paid on December 30.
Final execution and signing of all transaction documents were concluded at the George Hotel, officially bringing the transaction to a close after several months of negotiations and due diligence.
Nairametrics understands parties involved in the deal wanted it closed ahead of the implementation of the new capital gains tax, which starts January 1st, 2026.
More details about the transaction
The deal originated from a Share Purchase Agreement (SPA) signed in January 2025 between Transgrid Enerco and West Power & Gas Limited, the outgoing controlling shareholder of Eko DisCo.
The transaction is distinct from prior DisCo ownership changes in Nigeria, which were often triggered by financial defaults or regulatory interventions.
Transgrid Enerco is a consortium of strategic and institutional investors with interests in energy infrastructure. Members of the consortium include Stanbic IBTC Infrastructure Growth Fund (SIIF), the North-South Power Company Limited (NSP), and Axxela Limited.
Their entry is expected to bring both capital and operational discipline to Eko DisCo, which serves southern Lagos and parts of Ogun State—a region with significant commercial and industrial electricity demand.
The new owners are also expected to implement performance improvement plans focused on service reliability, metering expansion, and customer satisfaction.
Why this matters
Eko DisCo is regarded as one of the most commercially viable electricity distribution companies in Nigeria due to its urban, high-density customer base and relatively strong revenue collection rates.
This deal signals renewed investor confidence in Nigeria’s power sector, particularly in market-based, non-coercive transactions that allow for negotiated pricing, control, and risk-sharing.
Industry experts will likely see the transaction as a benchmark for future acquisitions, suggesting that more voluntary ownership changes may occur under similar frameworks if this model proves successful.
What you should know
- Eko DisCo Background: Eko Electricity Distribution Company is one of 11 DisCos created from the 2013 unbundling of the Power Holding Company of Nigeria (PHCN).
- It has historically performed better than many of its peers, particularly in revenue collection and customer service.
- Nairametrics reporting: In January 2025, Nairametrics first reported that Transgrid Enerco had signed an SPA to acquire the 60% stake, pending regulatory approvals.
- Sector trend: The power sector has been under pressure to attract private capital amid growing demand, aging infrastructure, and liquidity challenges. Deals like this indicate that market-oriented reforms may be taking root.
- What to watch: Regulatory filings, reconstitution of Eko DisCo’s board and management, and the implementation of promised capital expenditure programs will be key indicators of the success of this transaction.
- We understands staff of Eko Disco will be briefed on what next following the exit of WPG.
This is a developing story, and Nairametrics will continue to provide updates as more details become available.