Transgrid Enerco Limited has completed the acquisition of a 60 percent controlling stake in Eko Electricity Distribution Company (Eko DisCo) in a transaction valued at approximately ₦360 billion, marking one of the largest privately negotiated takeovers in Nigeria’s power distribution sector since the 2013 privatisation exercise. Innovation Village initially reported the transaction in January 2025.
Multiple sources familiar with the transaction confirmed that the deal was finalised on December 30, after several months of negotiations and due diligence. The acquisition transfers control from West Power & Gas Limited (WPG), the former core investor, which originally acquired the same 60 percent stake for about $135 million during the 2013 unbundling of the Power Holding Company of Nigeria (PHCN).
The transaction structure reflects a mix of immediate liquidity and deferred settlement. According to sources, Transgrid Enerco paid ₦180 billion upfront in cash, while the remaining ₦180 billion was secured through bank guarantees to provide payment assurance to the sellers. The cash component itself was settled in two tranches: ₦150 billion paid earlier in the week of completion, and a final ₦30 billion payment made on December 30. Final execution and signing of the transaction documents took place at the George Hotel, formally closing the deal.
Timing played a critical role in the transaction’s completion. Parties involved were reportedly keen to conclude the acquisition ahead of the implementation of Nigeria’s revised capital gains tax regime, scheduled to take effect from January 1, 2026. Closing before the new tax framework allowed both buyer and seller to lock in the transaction under existing tax conditions.
The acquisition originates from a Share Purchase Agreement signed in January 2025 between Transgrid Enerco and WPG, pending regulatory approvals. Unlike several past ownership changes among Nigeria’s electricity distribution companies—many of which were triggered by loan defaults, regulatory interventions, or creditor takeovers—this deal stands out as a purely commercial and strategic transaction, negotiated on market terms.
Transgrid Enerco is a consortium of strategic and institutional investors with a focus on energy infrastructure. Its members include Stanbic IBTC Infrastructure Growth Fund, North-South Power Company Limited, and Axxela Limited. The consortium’s entry is expected to bring both fresh capital and stronger governance discipline to Eko DisCo, which serves southern Lagos and parts of Ogun State—areas characterised by dense urban populations, significant commercial activity, and relatively strong revenue collection potential.
Eko DisCo is widely regarded as one of the more commercially viable distribution companies in Nigeria’s electricity market, benefiting from a high-value customer base and comparatively better collection performance. Under the new ownership, Transgrid Enerco is expected to implement performance improvement programmes focused on service reliability, accelerated metering deployment, and enhanced customer experience.
From a broader market perspective, the transaction signals renewed investor confidence in Nigeria’s power sector, particularly in negotiated, market-driven ownership changes rather than distressed takeovers. As demand for electricity continues to rise amid ageing infrastructure and liquidity challenges, the deal may serve as a benchmark for future DisCo transactions, encouraging voluntary capital inflows and strategic exits.
Going forward, key indicators to watch will include regulatory filings, reconstitution of Eko DisCo’s board and management, staff engagement following WPG’s exit, and the execution of promised capital expenditure plans. If successfully implemented, the Transgrid Enerco acquisition could help reshape perceptions of Nigeria’s power distribution segment as an investable, reform-driven market rather than a structurally distressed one.
