Axxela, Stanbic acquires 60% stake in Nigeria’s second largest DisCo

Transgrid Enerco Limited, a consortium comprising Stanbic IBTC Infrastructure Growth Fund (SIIF), North-South Power Company Limited (NSP), and Axxela Limited, has acquired a 60 percent equity stake in Eko Electricity Distribution Company (Eko DisCo).

The transaction valued at around $200 million is expected to be completed in April 2025, subject to regulatory approvals. The deal marks a significant step in Transgrid’s expansion in the Nigerian power sector.

West Power and Gas Limited (WPG), the parent company of Eko Disco, finalised the deal after Transgrid Enerco paid a commitment fee as a share purchase agreement was signed on January 21, 2025.

The acquisition is a strategic win for the consortium members. North-South Power Company, which owns the Shiroro Dam, will now have direct control over Eko Disco’s operations and finances, enabling it to strengthen its position in the power value chain.

For Axxela Limited, a leading natural gas distributor, this move provides an opportunity to expand into electricity distribution and gain direct access to cash flow.

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Axxela already operates a 360-kilometer natural gas network and has stakes in power generation projects, including the Akute and Alausa power plants, as well as embedded power partnerships with Eko and Ikeja Discos with a combined capacity of 140 MW.

For Stanbic IBTC Infrastructure Growth Fund, Nigeria’s largest private equity fund for infrastructure, the deal aligns with its objective of investing in projects with strong cash flow potential and advancing the country’s power sector.

Charles Momoh, chairman of WPG, described the acquisition as a crucial step forward for Eko Disco, noting that the new owners will leverage opportunities in Nigeria’s evolving electricity market.

“Transgrid Enerco will, upon obtaining the relevant regulatory approvals, capitalise on the positive changes occurring within the fast-evolving Nigerian electricity market to reposition Eko Disco to access new sources of capital,” Momoh said.

The consortium plans to reposition Eko Disco to improve operational efficiency and financial stability while ensuring a more robust power supply to its customers.