West Power & Gas Limited (WPG) has completed the sale of its 60 per cent controlling stake in Eko Electricity Distribution Company (Eko Disco) to Transgrid Enerco Limited in a transaction valued at about N360 billion.

Multiple sources familiar with the deal confirmed that the transaction was finalised on December 30, 2025, bringing to a close one of the largest privately negotiated takeovers in Nigeria’s power distribution sector since the 2013 electricity privatisation.

Although the deal was initially expected to close by April 2025, prolonged negotiations and due diligence pushed completion to the end of the year, it was gathered.

Sources disclosed that Transgrid Enerco paid an initial N180 billion in cash, while the outstanding N180 billion was secured through bank guarantees to assure deferred settlement to the sellers.

The cash component was paid in two tranches, with N150 billion remitted earlier in the week of completion and an additional N30 billion paid on December 30.

Final execution and signing of all transaction documents reportedly took place at the George Hotel, formally concluding the deal.

Parties involved in the transaction were said to have accelerated the closure ahead of the implementation of the new capital gains tax regime, which comes into effect on January 1, 2026.

Daily Trust reports that the acquisition stemmed from a Share Purchase Agreement (SPA) signed in January 2025 between Transgrid Enerco and WPG, the outgoing majority shareholder of Eko Disco.

Unlike several previous ownership changes in Nigeria’s distribution companies, the deal was not triggered by financial distress or regulatory intervention.

WPG had acquired its 60 per cent stake in Eko Disco for about $135 million during the 2013 privatisation of the power sector.

Transgrid Enerco is a consortium of strategic and institutional investors with interests in energy infrastructure.

Members of the consortium include Stanbic IBTC Infrastructure Growth Fund (SIIF), North-South Power Company Limited (NSP) and Axxela Limited.

The consortium is also expected to roll out performance improvement initiatives focusing on service reliability, accelerated metering, and enhanced customer satisfaction as part of efforts to reposition the distribution company for sustainable growth.

The bidding process for acquiring Eko DisCO began a year ago. The acquisition is seen as a strategic move, particularly because two of the companies in the Transgrid Enerco consortium—NSP and Axxela Limited—are already established players in the energy sector.

NSP, which owns Shiroro Dam, will gain direct control and insight into Eko DisCO’s operations, providing a clearer understanding of the company’s cash flow distribution. (Daily Trust)

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