Nigerian business magnate Sir Emeka Offor, through his company Interstate Electrics Limited, has successfully acquired a 60% stake in the Enugu Electricity Distribution Company (Enugu Disco) for a sum of $126 million. This strategic acquisition marks a significant milestone in Nigeria’s power sector privatization and underscores Offor’s commitment to driving energy reforms in the country.
Privatization of Enugu Disco
The acquisition was part of the Federal Government of Nigeria’s initiative to privatize the power sector and unbundle the Power Holding Company of Nigeria (PHCN). The goal was to introduce private sector participation to improve efficiency, expand power generation and distribution, and address the country’s chronic energy challenges.
Interstate Electrics emerged as the preferred bidder for Enugu Disco, which is responsible for power distribution across the South-East states of Nigeria, including Abia, Anambra, Ebonyi, Enugu, and Imo.
Financing the Deal
To meet the financial requirements for the acquisition, Interstate Electrics contributed an initial $24.5 million, while the remaining $101.5 million was financed through a bridge facility. The financing structure included:
•$70 million loan secured from the African Export-Import Bank (AFREXIM), facilitated by Unity Bank Plc.
•An additional $31.5 million facility provided by Unity Bank to close the funding gap.
Interstate Electrics’ Vision for Enugu Disco
With this acquisition, Interstate Electrics aims to revolutionize power distribution in the South-East by investing in modern infrastructure, enhancing operational efficiency, and improving service delivery to customers. The company has outlined plans to:
•Upgrade electricity distribution networks.
•Reduce technical losses and improve billing systems.
•Foster partnerships to expand access to reliable electricity in underserved areas.
Impact on the Nigerian Power Sector
The $126 million investment reflects the growing confidence of private investors in Nigeria’s power sector reforms. By acquiring a controlling stake in Enugu Disco, Emeka Offor and Interstate Electrics are poised to play a pivotal role in addressing the challenges of electricity distribution and contributing to economic growth in the region.
As Nigeria continues to grapple with energy deficits, strategic investments like this are critical to achieving the federal government’s goal of providing reliable power for all Nigerians.
This landmark deal further cements Sir Emeka Offor’s status as one of Nigeria’s leading entrepreneurs and reinforces his legacy in driving transformative projects across multiple industries.
