In a historic move for Nigeria’s energy industry, Transgrid Enerco Limited has agreed to buy a 60% equity position in Eko Electricity Distribution Company (Eko DisCo) through a Share Purchase Agreement (SPA).
A daring new era for Nigeria’s energy distribution is heralded by this deal, which is the first market-driven purchase in the power industry.
Axela Limited, the Stanbic IBTC Infrastructure Growth Fund (SIIF), and North South Power Company Limited (NSP) have partnered to form Transgrid Enerco.
Each partner contributes a multitude of skills to this game-changing endeavor. NSP is a pioneer in the production of hydroelectric power, Axxela focuses on gas infrastructure and energy solutions, and SIIF is the biggest infrastructure-focused fund in Nigeria, offering strong financial plans for major projects.
Nigeria’s industrial and commercial development depends on the Agbara community in Ogun State and the southern portion of Lagos State, which are currently served by Eko DisCo.
In the coming years, Transgrid Enerco plans to increase Eko DisCo’s power distribution capacity from 513MW to 1,500MW, modernize its operations, and improve customer service.
Transgrid Enerco Chairman Mr. Olubunmi Peters highlighted the importance of this milestone during his remarks at the signing event, stating: “Today’s signing marks more than a transaction—it is a commitment to addressing Nigeria’s energy challenges.” By providing dependable, sustainable, and creative solutions, Transgrid Enerco is well-positioned to spearhead the revolution in power distribution with this acquisition. We will work together to update infrastructure, increase accessibility, and promote economic expansion.
This purchase is in line with Transgrid Enerco’s objective to use dependable power to empower communities, enhance sustainability, and spur economic growth.
By incorporating renewable energy sources like hydropower and solar, the company hopes to raise the bar for environmental responsibility and efficiency in the power industry.
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A mutual dedication to cooperation is also demonstrated by the acquisition. With the help of stakeholders, regulators, and the general public, Transgrid Enerco hopes to see Nigeria’s energy infrastructure fulfill the demands of its industry and populace in the future.
The deal highlights the significance of private sector investment in changing Nigeria’s energy landscape and is expected to be completed by April 2025.
Transparency, operational excellence, and a customer-first strategy have been proclaimed as top priority by Transgrid Enerco’s leadership.
