Transgrid Enerco Limited has completed the acquisition of a 60% controlling stake in Eko Electricity Distribution Company in a transaction valued at approximately ₦360 billion, according to multiple sources familiar with the matter who spoke exclusively to Nairametrics.
The transaction, which had been expected to close by April 2025, was finalised on December 30, underscoring the complexity and scale of negotiations involved. The deal ranks among the largest privately negotiated takeovers in Nigeria’s electricity distribution segment since the landmark 2013 power sector privatisation.
A landmark post-privatisation transaction
Eko Electricity Distribution Company, commonly referred to as Eko Disco, is one of Nigeria’s most commercially significant distribution utilities, serving Lagos Island, Victoria Island, Ikoyi, Lekki and parts of the mainland—areas that account for a substantial share of national electricity demand and revenue potential.
The acquisition gives Transgrid Enerco operational control of the utility at a time when Nigeria’s power sector is undergoing renewed reform efforts focused on cost-reflective tariffs, improved governance, and private capital mobilisation.
Industry analysts say the ₦360 billion valuation reflects both the strategic importance of Eko Disco’s franchise area and growing investor appetite for infrastructure assets capable of delivering long-term, inflation-linked cash flows in Africa’s largest economy.
Context from the 2013 privatisation
During the 2013 privatisation of Nigeria’s electricity sector, the original core investor reportedly paid about $135 million to acquire 60% of Eko Disco’s core assets from the Federal Government. The sharp increase in valuation over the past decade highlights the scale of capital injected into the business, as well as the rising replacement cost of power infrastructure amid currency depreciation and higher financing costs.
However, the transaction also comes against the backdrop of persistent sector challenges, including liquidity constraints across the value chain, gas supply bottlenecks, metering gaps, and legacy debts owed by government agencies.
What this means for the power sector
Market observers view the deal as a strong signal that, despite structural risks, Nigeria’s power distribution companies remain investible with the right balance sheet strength and operational expertise.
If successfully executed, Transgrid Enerco’s investment could accelerate network upgrades, metering rollout, and service reliability within Eko Disco’s coverage area—outcomes regulators and consumers have long demanded.
The acquisition is also expected to intensify conversations around consolidation, recapitalisation, and new ownership structures across Nigeria’s electricity distribution companies, many of which continue to seek fresh capital more than a decade after privatisation.
For policymakers, the deal reinforces the central role of private capital in fixing Nigeria’s electricity supply—one of the most binding constraints on economic growth.
