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 about ₦360 billion, making it one of the largest privately negotiated takeovers in Nigeria’s power distribution sector since the 2013 privatisation exercise. Innovation Village first reported the deal in January 2025.
Multiple sources familiar with the transaction said the acquisition was finalised on December 30, following several months of negotiations and due diligence. The deal transfers control from West Power & Gas Limited (WPG), the former core investor, which acquired the same 60 percent stake for roughly $135 million during the 2013 unbundling of the Power Holding Company of Nigeria (PHCN).
The structure of the transaction combines immediate cash payment with deferred settlement. According to sources, Transgrid Enerco paid ₦180 billion upfront, while the balance of ₦180 billion was secured through bank guarantees to assure payment to the sellers. The cash portion was settled in two tranches: ₦150 billion paid earlier in the week of completion and a final ₦30 billion paid on December 30. Final execution and signing of the transaction documents took place at the George Hotel, formally closing the deal.
Timing was a critical factor in concluding the acquisition. Parties to the transaction were reportedly keen to close ahead of Nigeria’s revised capital gains tax regime, which is due to take effect from January 1, 2026. Completing the deal before the new framework allowed both buyer and seller to transact under the existing tax conditions.
The acquisition stems from a Share Purchase Agreement signed in January 2025 between Transgrid Enerco and WPG, subject to regulatory approvals. Unlike several previous ownership changes in Nigeria’s electricity distribution companies—many driven by loan defaults, regulatory intervention or creditor takeovers—this transaction is described as a purely commercial and strategic deal, negotiated on market terms.
Transgrid Enerco is a consortium of strategic and institutional investors focused 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 inject fresh capital and introduce stronger governance discipline at Eko DisCo, which serves southern Lagos and parts of Ogun State—areas with dense urban populations, significant commercial activity, and relatively strong revenue collection potential.
Eko DisCo is widely viewed as one of the more commercially viable distribution companies in Nigeria’s electricity market, supported by a high-value customer base and comparatively better collection performance. Under the new ownership, Transgrid Enerco is expected to roll out performance improvement initiatives centred on service reliability, accelerated metering deployment, and improved customer experience.
More broadly, the deal signals renewed investor confidence in Nigeria’s power sector, particularly in negotiated, market-led ownership changes rather than distressed takeovers. With electricity demand rising amid ageing infrastructure and persistent liquidity challenges, the transaction could set a benchmark for future DisCo deals, encouraging voluntary capital inflows and strategic exits.
In the coming months, attention will focus on regulatory filings, the reconstitution of Eko DisCo’s board and management, staff engagement following WPG’s exit and the execution of promised capital expenditure plans. If delivered as planned, the Transgrid Enerco acquisition could help reposition Nigeria’s power distribution segment as an investable, reform-driven market rather than a structurally distressed one.
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