A consortium led by Transgrid Enerco Limited, which includes Stanbic IBTC Infrastructure Growth Fund (SIIF), North-South Power Company Limited (NSP), and Axxela Limited, has acquired a controlling 60% stake in Eko Electricity Distribution Company (Eko DisCo).
The acquisition, estimated at approximately $200 million, is set to conclude by April 2025, pending necessary regulatory approvals. This strategic move positions Transgrid Enerco as a major player in Nigeria’s evolving power sector.
West Power and Gas Limited (WPG), the parent company of Eko DisCo, sealed the deal after receiving a commitment fee from Transgrid Enerco, with a formal share purchase agreement signed on January 21, 2025.
For the consortium partners, this acquisition offers substantial strategic benefits. North-South Power Company, which operates the Shiroro Dam, will now have direct oversight of Eko DisCo’s operations and financial management, allowing for a stronger foothold in the electricity value chain.
Axxela Limited, a key player in the natural gas distribution market, sees the deal as an opportunity to diversify into electricity distribution and tap into new revenue streams.
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Axxela currently manages a 360-kilometer natural gas distribution network and holds investments in power generation projects such as the Akute and Alausa power plants. It also has embedded power agreements with both Eko and Ikeja DisCos, collectively supplying 140 MW of power.
For Stanbic IBTC’s Infrastructure Growth Fund, Nigeria’s largest private equity vehicle focused on infrastructure development, this acquisition aligns with its long-term strategy of investing in high-value projects with strong cash flow potential while contributing to national power sector improvements.
Speaking on the transaction, Charles Momoh, Chairman of WPG, highlighted the acquisition as a transformative step for Eko DisCo. He emphasized that the new stakeholders will capitalize on opportunities arising from Nigeria’s dynamic electricity sector to attract fresh investment and enhance performance.
“Once regulatory approvals are secured, Transgrid Enerco aims to leverage the ongoing positive reforms in Nigeria’s power industry to strengthen Eko DisCo’s operations and unlock new financial opportunities,” Momoh stated.
The consortium plans to implement operational and financial strategies to enhance efficiency and ensure a more consistent power supply for customers across Eko DisCo’s coverage areas.
