Transgrid Enerco Limited has officially acquired a 60% controlling stake in Eko Electricity Distribution Company (Eko DisCo) from West Power & Gas Limited (WPG). The transaction, valued at approximately ₦360 billion, was finalized on December 30, 2025, marking a significant milestone in Nigeria’s power sector.
This deal represents one of the largest privately negotiated takeovers in the industry since the privatization exercise of 2013. WPG originally purchased 60% of the distribution company’s core assets for $135 million during that initial privatization phase. The current sale to Transgrid Enerco, a consortium of strategic and institutional investors, underscores a major shift in ownership dynamics within the sector.
Sources familiar with the transaction revealed that Transgrid Enerco made an initial cash payment of ₦180 billion. The remaining ₦180 billion is secured through bank guarantees, providing deferred settlement assurance to the sellers. The cash component was delivered in two tranches: ₦150 billion paid earlier in the week leading up to the closure, and a final ₦30 billion paid on December 30.
The final execution and signing of all necessary documents took place at the George Hotel in Lagos, concluding months of rigorous negotiations and due diligence. Notably, the parties were motivated to close the deal before January 1, 2026, to avoid the implementation of a new capital gains tax taking effect on that date.
Transgrid Enerco is not a single entity but a consortium that includes significant players in the energy and finance sectors, such as the Stanbic IBTC Infrastructure Growth Fund (SIIF), North-South Power Company Limited (NSP), and Axxela Limited. Their entry is expected to inject both capital and operational discipline into Eko DisCo, which serves critical commercial and industrial hubs in southern Lagos and parts of Ogun State.
The acquisition differs from previous ownership changes in the Nigerian power sector, which were often forced by regulatory interventions or financial defaults. Instead, this was a voluntary, market-based transaction, signaling renewed investor confidence in the sector’s potential for profitability and growth.
Eko DisCo is widely considered one of the most commercially viable distribution companies in Nigeria, thanks to its high-density urban customer base and relatively strong revenue collection record. The new owners are expected to roll out performance improvement plans focusing on metering expansion, service reliability, and enhanced customer satisfaction.
Industry experts view this transaction as a potential benchmark for future deals. The success of this voluntary, negotiated acquisition could pave the way for similar market-oriented reforms, moving the sector away from government-led interventions and towards a more sustainable, private-capital-driven model.
With the deal now closed, attention turns to the reconstitution of Eko DisCo’s board and management. Staff are expected to be briefed imminently regarding the transition. Key indicators of the transaction’s success will be the implementation of promised capital expenditure programs and the tangible improvement of service delivery to customers.
This acquisition comes at a time when Nigeria’s power sector is under immense pressure to modernize infrastructure and meet growing demand. The injection of private capital and expertise through deals like this is seen as a crucial step towards stabilizing and expanding the country’s electricity supply.
