Transgrid Enerco Limited has officially signed an agreement to acquire a 60% controlling interest in Eko Electricity Distribution Company (Eko DisCo), marking a significant shift in Nigeria’s power sector through this market-driven transaction.
This landmark acquisition introduces a new phase in electricity distribution, with Transgrid Enerco aiming to revamp operations and enhance service delivery. The company is a collaborative effort between North South Power Company Limited (NSP), Axxela Limited, and the Stanbic IBTC Infrastructure Growth Fund (SIIF), bringing together diverse expertise in energy generation, gas infrastructure, and large-scale financial investment.
NSP is renowned for its hydroelectric power generation capabilities, Axxela excels in natural gas infrastructure and energy solutions, while SIIF stands as the nation’s largest infrastructure-focused investment fund, providing the financial backbone for ambitious projects.
Eko DisCo currently supplies electricity to key economic zones, including the southern region of Lagos State and parts of Ogun State, areas that play a pivotal role in Nigeria’s industrial and commercial activities. Transgrid Enerco has set an ambitious target to boost Eko DisCo’s electricity distribution capacity from the current 513MW to 1,500MW in the coming years, with plans to modernize operations and improve service quality.
A Step Towards Energy Transformation
During the signing ceremony, Olubunmi Peters, Chairman of Transgrid Enerco, highlighted the strategic importance of the acquisition, stating:
“This agreement is not just a business deal; it represents our dedication to tackling Nigeria’s energy challenges head-on. With this investment, we aim to redefine electricity distribution by implementing innovative, sustainable, and reliable solutions to serve our customers better.”
Transgrid Enerco’s overarching goal is to empower communities, foster sustainable energy practices, and contribute to Nigeria’s economic progress by ensuring a steady and reliable power supply. The company plans to integrate renewable energy sources such as solar and hydropower, aiming to set a precedent for efficiency and environmental stewardship in the power sector.
Collaborative Efforts for a Sustainable Future
The acquisition reflects the collective efforts of stakeholders, regulatory bodies, and industry players working towards a more efficient and responsive energy sector. Transgrid Enerco envisions a future where Nigeria’s power infrastructure effectively supports the nation’s growing demand and industrial development.
Set for completion by April 2025, the transaction underscores the crucial role of private sector investment in revolutionizing Nigeria’s energy industry. Transgrid Enerco’s leadership has pledged a commitment to operational transparency, excellence, and a customer-centric approach in delivering their objectives.
