Yemisi Izuora
Key transformation is underway in Eko Electricity Distribution Company (EKEDC) following Transgrid Enerco Limited acquisition of a 60 per cent controlling interest in the company.
The DisCo is expected to transit into a range of new deals that would involve infrastructure projects to achieve quality service delivery.
The transaction which is valued at about N360 billion, was initially expected to close by April 2025, and 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 per cent stake in Eko DisCo for about $135 million during the 2013 power sector privatisation exercise.
Transgrid Enerco, has reportedly 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.
Timing Influenced by Tax Considerations.
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.
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