Transgrid Enerco Ltd., a consortium backed by North South Power Co., Axxela Ltd., and the Stanbic IBTC Infrastructure Growth Fund, has completed its acquisition of a 60% equity stake in Eko Electricity Distribution Co. from West Power & Gas Ltd. in a transaction valued at approximately ₦360 billion.
The acquisition follows a share purchase agreement initially signed in January, and was expected to close in April 2025. The deal is one of the largest privately negotiated takeovers in Nigeria's power sector since the 2013 privatization.
This transaction represents Nigeria’s first market-driven acquisition in the power sector, different from prior ownership shifts in the country's distribution companies triggered by regulatory interventions. West Power & Gas had originally purchased the stake for around $135 million in the 2013 privatization round.
Those familiar with the transaction told Deals and Advisory Report that ₦180 billion upfront in cash, delivered in tranches including a final ₦30 billion installment today, with the balance secured via bank guarantees for deferred settlement. Transgrid Enerco pledges to significantly enhance Eko Disco's performance, with plans to expand its electricity distribution capacity from the current 513 megawatts to 1,500 megawatts within the next few years.
Detail Commercial Solicitors (led by Partners Temidayo Ajayi and Olawunmi Alade.) served as legal counsel to Transgrid Enerco on the acquisition. Dentons ACAS-Law (led by Partner Omolola Coker) advised West Power & Gas on the divestment of its full 60% holding in Eko Electricity Distribution Plc to the consortium.
Zenith Bank Plc and Sterling Bank Plc collaborated to raise and deploy debt capital, supporting the consortium in achieving financial close. Other participating advisors include InfraCredit, Banwo & Ighodalo, Vetiva Capital Management Limited, Asset & Resource Management Holding Company (ARM HoldCo)..
Eko Disco supplies power to southern Lagos State and the Agbara industrial area in Ogun State, regions central to Nigeria's commercial and manufacturing activity.
The incoming owners, combining decades of hydroelectric generation expertise from North South Power, gas infrastructure and distribution leadership from Axxela, and robust financial backing from Nigeria's largest infrastructure-focused fund managed by Stanbic IBTC.
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