EkoDisCo Sells 60% Stake To Transgrid Enerco

Transgrid Enerco Limited –an alliance formed by North South Power Limited (NSP), Axxela Limited, and the Stanbic IBTC Infrastructure Growth Fund (SIIF)– has signed a share purchase agreement (SPA) for the proposed acquisition of a 60% equity stake in Eko Electricity Distribution Company (Eko DisCO), Nigeria’s second-largest electricity distribution company.

The SPA was signed Tuesday January 21, 2025, and the transaction will be completed in April 2025.

Reports earlier indicated that West Power and Gas Ltd (WPG), the parent company of Eko DisCo, was close to selling its entire stake after the North-South Power, Axxela, and Stanbic Infrastructure Fund consortium won the bid to acquire it.

The bid to acquire EkoDisCo, it was gathered, started a year ago. While the amount in the deal was not stated, it is believed to be in excess of $200 million according to this news report.

This could be money well spent as two of the companies —NSP and Axxela Limited— that formed the Transgrid Enerco consortium are in the Energy sector.

NSP which owns Shiroro Dam will get direct control and insight into EkoDisCo’s operations enabling it to have a clear scope of the company’s cash flow distribution.

While EkoDisCo meets remittance obligations to the market, the inability of other DisCos to meet these obligations means that power-generating companies like NSP do not get their full payments.

This acquisition allows NSP to have better control of how the company collects payment and perhaps influence other DisCos to employ more efficient payment collection tactics.

In 2023 a Transcorp-led Consortium —owners of Ughelli Power Plant— acquired 60% majority stake in Abuja DisCo.

Similarly, Sahara Power —owners of Egbin Power Plant— owns a 60% majority stake in IkejaElectric.

Moreover, the consortium acquiring EkoDisCo is taking ownership from West Power and Gas Ltd (WPG). It remains to be seen if the new owners will solve the challenges facing electricity distribution in the country.

Chairman of WPG, Charles Momoh, said in a press statement that “Transgrid Enerco will, upon obtaining the relevant regulatory approvals, capitalize on the positive changes occurring within the fast-evolving Nigerian electricity market to reposition EkoDisCo to access new sources of capital.”