In a landmark transaction for Nigeria’s electricity distribution landscape, West Power & Gas Limited (WPG), has successfully concluded the sale of its 60% controlling stake in Eko Electricity Distribution Company (Eko DisCo), to Transgrid Enerco Limited for approximately N360 billion.
The deal, finalised on 30 December 2025, marks one of the most significant privately negotiated takeovers in the Nigeria’s power distribution sector since the industry’s privatisation in 2013.
Significance and Structure of the Transaction
The transaction involves the transfer of majority ownership of Eko DisCo, one of Nigeria’s most commercially viable distribution companies, serving millions of customers across southern Lagos and parts of Ogun State. The stake sale represents a strategic move for both parties:
Transgrid Enerco, a consortium of major energy and infrastructure investors, has acquired the stake.
WPG, which originally acquired the Eko DisCo stake for around $135 million during the 2013 power sector privatisation, has now exited majority ownership after more than a decade.
The payment structure for the N360 billion agreement was a blend of upfront cash and secured deferred settlement:
N180 billion was paid in cash.
N150 billion of this was paid earlier in the week of closing.
The remaining N30 billion was paid on 30 December 2025.
The balance N180 billion was secured through bank guarantees to provide assurance to the sellers.
The timing of the transaction’s completion ahead of the January 1, 2026 implementation of Nigeria’s revised capital gains tax regime is reported to have been a strategic consideration for both parties.
Who Is Transgrid Enerco?
Transgrid Enerco Limited is a strategic consortium made up of:
North-South Power Company Limited (NSP) – a key player in hydroelectric power generation.
Axxela Limited – a major player in gas infrastructure and energy solutions.
Stanbic IBTC Infrastructure Growth Fund (SIIF) – a leading infrastructure-focused investment fund in Nigeria.
This diversified investor base brings deep expertise across power generation, gas, and infrastructure finance—positioning Transgrid Enerco to accelerate Eko DisCo’s performance and service delivery.
Implications for Eko DisCo and the Sector
Eko DisCo has traditionally been one of Nigeria’s stronger distribution companies, known for relatively better revenue collection and a large urban customer base, which makes it vital to commercial and industrial electricity consumers.
Under new ownership, expectations are high for:
- Operational upgrades and improvements in reliability.
- Investment in infrastructure modernisation.
- Expansion of distribution capacity, with plans reportedly to increase capacity from around 513 MW to up to 1,500 MW in the coming years.
- A focus on enhancing customer service and reducing system losses through technology and process enhancements.
Analysts view this acquisition as a milestone in Nigeria’s evolving power market, one driven by commercial valuation and strategic investment rather than enforced changes due to financial distress or regulatory action—a notable departure from some past ownership transitions in the sector.
Strategic Outlook and Future Prospects
The entry of Transgrid Enerco into the operational leadership of Eko DisCo is being seen as a potential catalyst for broader improvements in electricity distribution performance in Nigeria.
With renewed focus on private investment, infrastructure strengthening, and operational excellence, stakeholders are hopeful this change will contribute meaningfully to addressing long-standing challenges in the power sector.
As the new owners assume control, attention will turn to implementation of modernisation plans, regulatory compliance, and customer-centric innovation—factors critical to improving reliability and driving economic growth across the regions served by Eko DisCo.
