Eko DisCo sells 60% stake to Transgrid Enerco Limited, a consortium comprising North South Power Company Limited (NSP), Axxela Limited, and the Stanbic IBTC Infrastructure Growth Fund (SIIF).
On January 21, 2025, the group finalized a share purchase agreement to acquire this significant equity in Nigeria’s second-largest electricity distribution company.
This strategic acquisition is slated for completion in April 2025. The bidding process, initiated in early 2024, culminated with the consortium’s successful offer, reportedly exceeding $200 million.
The involvement of NSP and Axxela Limited—both prominent entities in Nigeria’s energy sector—positions Transgrid Enerco to enhance operational efficiencies within Eko DisCo.
NSP, owner of the Shiroro Dam, will gain direct oversight of Eko DisCo’s operations, providing clearer insights into cash flow management. This is particularly significant, as Eko DisCo has been noted for its compliance in meeting remittance obligations, a standard not consistently met by other distribution companies.
The trend of power generation companies acquiring stakes in distribution companies is not unprecedented in Nigeria. In 2023, a Transcorp-led consortium, owners of the Ughelli Power Plant, acquired a 60% majority stake in Abuja Electricity Distribution Company (AEDC).
Similarly, Sahara Power, owners of the Egbin Power Plant, holds a majority stake in Ikeja Electric.
Chairman of West Power and Gas Ltd (WPG)
Charles Momoh, Chairman of West Power and Gas Ltd (WPG), the former parent company of Eko DisCo, expressed optimism about the transition. He stated that Transgrid Enerco plans to leverage ongoing reforms in Nigeria’s electricity market to reposition Eko DisCo, aiming to attract new capital sources and address longstanding distribution challenges.
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As Nigeria continues to grapple with electricity supply issues, this acquisition underscores a broader trend of integrating energy generation and distribution. Such integrations aim to streamline operations, improve payment collections, and ultimately enhance service delivery to consumers.
The success of this model could influence other companies to adopt similar strategies, potentially leading to a more stable and efficient power sector in the country.
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