Transgrid Enerco Limited has completed the acquisition of a 60 per cent controlling stake in the Eko Electricity Distribution Company (Eko DisCo) in a transaction valued at approximately N360 billion, according to multiple sources familiar with the deal.
The transaction, which was initially expected to close by April 2025, was finalised on December 30, making it one of the largest privately negotiated takeovers in Nigeria’s power distribution sector since the 2013 privatisation of the Power Holding Company of Nigeria (PHCN).
The acquisition marks a significant milestone in the electricity market and signals renewed investor confidence in Nigeria’s power sector, particularly in market-driven, non-coercive transactions that allow for negotiated pricing, control and risk-sharing.
Industry analysts say the deal could serve as a benchmark for future acquisitions in the sector, suggesting that more voluntary ownership changes may emerge if this model proves successful.
Eko DisCo is one of the 11 electricity distribution companies created following the unbundling of PHCN in 2013. The company has historically outperformed many of its peers, especially in revenue collection and customer service delivery.
The power sector has faced sustained pressure to attract private capital amid rising electricity demand, ageing infrastructure and persistent liquidity challenges. Transactions of this scale are seen as a positive signal that ongoing market-oriented reforms may be gaining traction.
Key developments to watch include regulatory filings, the reconstitution of Eko DisCo’s board and management, and the rollout of proposed capital expenditure programmes, which will help determine the long-term success of the acquisition.
Sources also disclosed that staff of Eko DisCo are expected to be formally briefed on next steps following the exit of the previous core investor, West Power & Gas (WPG).