Stanbic-backed consortium to complete Eko Disco acquisition in April 2025

Transgrid Enerco Limited, a consortium comprising the Stanbic IBTC Infrastructure Growth Fund (SIIF), North-South Power Company Limited (NSP), and Axxela Limited, has secured a majority 60% equity stake in Eko Electricity Distribution Company (Eko Disco), one of Nigeria’s largest electricity distributors.

Earlier this month, Nairametrics reported that West Power and Gas Ltd (WPG), the parent company of Eko Disco, was nearing the full sale of its stake in the company.

This development came after the Transgrid Enerco consortium paid a commitment fee, signalling its intent to acquire the controlling interest. The acquisition followed a competitive bidding process that began earlier in 2024, with Transgrid Enerco emerging as the winner.

On January 21, 2025, the consortium officially signed the share purchase agreement (SPA) for the transaction, which is expected to be finalized by April 2025. The deal, valued at over $200 million, will see WPG relinquish its ownership of Eko Disco, handing full control of the company to Transgrid Enerco.

NSP, a power generation company known for owning the Shiroro Dam, will now have direct control over the operational and financial aspects of Eko Disco. According to Charles Momoh, Chairman of WPG, the deal positions Transgrid Enerco to capitalize on Nigeria’s rapidly changing electricity market, positioning Eko Disco to access new sources of capital once the necessary regulatory approvals are obtained.

For Axxela, the acquisition marks a significant expansion into the distribution segment of the energy market. Historically reliant on payments from power-generating companies, gas companies like Axxela stand to benefit from the direct cash flow generated by distribution operations. Axxela is known for its extensive natural gas distribution network, which spans over 360 kilometers, and its investments in power generation, including the Akute and Alausa independent power plants.

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The deal also provides a prime opportunity for the Stanbic Infrastructure Fund (SIF) to further its objectives. Established in June 2021 with a ₦100 billion Shelf Programme, SIF is Nigeria’s largest private equity fund dedicated to infrastructure. The fund targets investments with strong cash flow prospects, which aligns with its goal of meeting periodic distribution requirements for investors.

This acquisition is expected to have significant implications for Nigeria’s electricity market, offering the Transgrid Enerco consortium an influential role in the distribution of electricity, and driving forward the development of both the power generation and distribution sectors.