Transgrid Enerco Acquires Majority Stake In Eko DisCo

Transgrid Enerco Limited has acquired a 60 percent equity stake in Eko Electricity Distribution Plc, marking the first market driven acquisition of a Nigerian electricity distribution company since the 2013 power sector privatisation. The transaction was completed after all financing and transaction documents were executed at a signing ceremony in Lagos.

The deal is significant for a sector that has struggled to attract fresh private capital for over a decade. It signals renewed investor confidence in Nigeria’s electricity distribution space, which has long been constrained by weak infrastructure, tariff challenges and operational inefficiencies.

Transgrid Enerco brings together institutional capital and technical expertise across Nigeria’s energy value chain, with a focus on long term operational ownership rather than short term returns. The company confirmed that it has raised the full debt and equity financing required for the acquisition and has reached financial close, with fund disbursements to follow as agreed.

Why Eko DisCo matters

Eko Electricity Distribution Company is one of the country’s largest power distributors, supplying electricity to major parts of Lagos State and the Agbara axis of Ogun State. Its network serves households, commercial centres and industrial clusters in one of Nigeria’s most economically active regions.

Any improvement in EKEDC’s performance has direct implications for productivity, business costs and quality of life across its coverage area. This makes the change in ownership particularly important for both the local economy and the wider power market.

What the acquisition means for the power sector

At a sector level, the transaction sets an important precedent. Since privatisation in 2013, most changes in ownership within the distribution segment have been driven by restructurings or regulatory interventions. A market led acquisition backed by fresh capital suggests that investor appetite is returning, provided there is clarity around operations and execution.

Speaking at the signing ceremony, the Chairman of Transgrid Enerco, Olubunmi Peters, said the deal reflects growing confidence in Nigeria’s power sector. He noted that the focus would be on infrastructure upgrades, improved efficiency and disciplined execution, while maintaining regulatory compliance and service continuity.

If successfully executed, the investment could help address long standing issues such as network losses, metering gaps and service reliability, challenges that have weighed on the financial health of distribution companies.

Implications for households and businesses

For households, the promise lies in more reliable power supply and better customer experience over time. While immediate changes may be limited, sustained investment in infrastructure and operations can reduce outages and improve service quality.

For businesses, especially manufacturers and SMEs in Lagos and Ogun, improved electricity supply can lower operating costs and reduce reliance on generators. This has wider economic benefits, including improved competitiveness and job creation.

Risks and what to watch

The opportunities are clear, but the risks remain. Power distribution in Nigeria operates within a tightly regulated environment, with tariffs, collection efficiency and liquidity across the value chain remaining sensitive issues. Execution will be critical, as infrastructure upgrades and operational improvements take time and require close coordination with regulators and other market participants.

Transgrid Enerco has stated that EKEDC’s operations would continue without disruption and that it will work closely with employees, customers, regulators, state governments and host communities. This collaborative approach will be key to sustaining trust and delivering results.

In positioning itself as a well capitalised, long-term operator, Transgrid Enerco is making a clear statement about its intentions in Nigeria’s power sector.