Transgrid Enerco Limited, a consortium comprising Stanbic IBTC Infrastructure Growth Fund (SIIF), North-South Power Company Limited (NSP), and Axxela Limited, has acquired a 60% majority equity stake in the Eko Electricity Distribution Company (Eko Disco), Nigeria’s second-largest electricity distribution company, in a landmark deal worth over $200 million.
The acquisition marks a significant development in Nigeria’s power sector. According to sources, West Power and Gas Ltd (WPG), the parent company of Eko Disco, has sold its entire stake to Transgrid Enerco following the consortium’s payment of a commitment fee.
Competitive Acquisition Process
The bid to acquire Eko Disco began earlier in 2024, culminating in the signing of the Share Purchase Agreement (SPA) on Tuesday, January 21, 2025. The transaction is scheduled for completion in April 2025, pending regulatory approvals.
Consortium Details
The Transgrid Enerco consortium comprises three major players:
1.North-South Power Company Limited (NSP)
•A leading power-generating company and the owner of Shiroro Dam, NSP will have direct operational and financial control over Eko Disco following the acquisition.
2.Axxela Limited
•A gas distribution company with an extensive 360-kilometer natural gas infrastructure network.
•The acquisition allows Axxela to expand into electricity distribution, giving it direct access to cash flow from Eko Disco.
•The company also has investments in independent power plants, including Akute and Alausa, and maintains embedded power projects of 100 MW and 40 MW with Eko and Ikeja DisCo.
3.Stanbic IBTC Infrastructure Growth Fund (SIIF)
•Established in June 2021 as a ₦100 billion Shelf Programme, it is Nigeria’s largest private equity fund dedicated to infrastructure.
•The fund’s investment in Eko Disco aligns with its objective of targeting high cash flow opportunities for periodic investor returns.
Strategic Importance
For North-South Power, this acquisition strengthens its footprint in Nigeria’s power value chain by bridging generation and distribution.
For Axxela, it reduces dependence on power-generating companies for payments, diversifies its portfolio, and positions it to play a more significant role in energy distribution.
For Stanbic IBTC Infrastructure Fund, it unlocks new investment opportunities in the evolving Nigerian power market.
WPG’s Statement on the Deal
Charles Momoh, Chairman of WPG, expressed confidence in the consortium’s ability to reposition Eko Disco for growth.
He stated:
“Transgrid Enerco will, upon obtaining the relevant regulatory approvals, capitalize on the positive changes occurring within the fast-evolving Nigerian electricity market to reposition Eko Disco to access new sources of capital.”
This acquisition is expected to enhance Eko Disco’s operational efficiency and support Nigeria’s drive for a more sustainable and reliable electricity supply.
