When Transgrid Enerco completed the acquisition of a 60 per cent controlling stake in Eko Electricity Distribution Company (Eko DisCo) seven days ago, it marked a significant shift in Nigeria’s troubled power sector, particularly for Lagos, the country’s commercial nerve centre.
The transaction, valued at about N360 billion including assumed liabilities, transfers control of one of Nigeria’s most strategic electricity distribution companies to a new investor consortium comprising North South Power (NSP), owners of the Shiroro Hydropower Plant; Stanbic Infrastructure Fund; and Axxela Limited, an indigenous gas and energy infrastructure company.
Eko DisCo serves more than 1.3 million customers across Lagos and parts of Ogun State, a region that accounts for an estimated 30 per cent of Nigeria’s gross domestic product. For Transgrid Enerco and its partners, the deal represents both a commercial opportunity and a test of whether private capital and operational expertise can address persistent challenges that have dogged the power distribution segment since privatisation in 2013.
Industry observers note that the acquisition comes at a critical time for Nigeria’s electricity sector, which continues to grapple with ageing infrastructure, high technical and commercial losses—often exceeding 40 per cent—weak revenue collection and inconsistent power supply from the national grid.
Experienced leadership team
The new owners have assembled a management and board team with experience spanning infrastructure development, public-private partnerships, investment banking and energy operations.
The consortium is led by Olubunmi Peters as chairman. Peters brings over four decades of experience combining technical training in the United States with public sector leadership in Nigeria. He holds degrees in civil and highway engineering from universities in Texas and California and previously served as managing director of the Federal Road Maintenance Agency (FERMA) between 2006 and 2009.
With 28 years in public service, Peters is expected to provide strong government relations and regulatory engagement, a critical factor in the heavily regulated power sector. He currently sits on the board of Roads Nigeria PLC and Shaw University in North Carolina.
A key figure behind the transaction is George Nwangwu, widely regarded as the deal architect. Nwangwu has advised on more than 100 privatisation and public-private partnership transactions valued at over $4.5 billion. A lawyer trained at the University of Lagos and University College London, with a PhD from the University of Hull, he previously served as PPP Project Coordinator at the Federal Ministry of Finance.
Analysts say his expertise in structuring complex transactions and managing multiple stakeholders likely played a central role in navigating the regulatory and commercial hurdles associated with the acquisition.
Financing and operations focus
The consortium also includes Kolapo Joseph, an investment banker with extensive experience in infrastructure finance. Joseph has raised more than $10 billion for projects across West and Central Africa during his career at Vetiva Capital Management and United Capital. He currently serves as chief corporate finance and development officer at North South Power Company, where he structured Nigeria’s first corporate green infrastructure bond.
His presence suggests that innovative financing mechanisms could be deployed to fund Eko DisCo’s capital-intensive network upgrades.
Operational expertise is expected to come from executives with direct experience in electricity distribution. Faruk Aliyu, who previously managed a workforce of about 4,000 staff at Abuja Electricity Distribution Company, brings hands-on experience in utility operations. During his tenure at Abuja DisCo, Aliyu oversaw improvements in regulatory compliance, customer service and cost efficiency.
Dolu Olugbenjo, chief investment officer at Stanbic IBTC Infrastructure Fund, represents the institutional investor perspective. He has facilitated over $7 billion in infrastructure investments across greenfield and brownfield projects, indicating a long-term investment approach rather than short-term asset stripping.
Gas-to-power advantage
Another notable member of the consortium is Olufisayo Duduyemi, managing director of Axxela Limited and first vice president of the Nigerian Gas Association. Duduyemi has led major gas infrastructure projects, including the development of a 128-kilometre gas transmission pipeline and several captive power plants.
His involvement points to a potential strategy of closer integration between gas supply and power distribution. Chronic gas shortages remain one of the biggest constraints on Nigeria’s power generation, and industry analysts believe that strong gas sector linkages could improve reliability for generation partners supplying Eko DisCo.
Challenges ahead
Despite the depth of experience within the new ownership structure, significant challenges remain. Eko DisCo requires substantial investment to upgrade substations, feeders and distribution networks, improve metering and reduce technical losses. Revenue collection also remains a sensitive issue in a market where resistance to estimated billing and payment defaults are widespread.
Previous owners of Eko DisCo faced criticism over underinvestment and service quality, leading to frequent outages and customer dissatisfaction.
Although details of the transaction remain largely confidential, analysts expect the deal to include performance benchmarks tied to loss reduction, customer service improvements and network expansion.
For Lagos and its surrounding industrial hubs, the success or failure of the new owners will have implications beyond the power sector. Reliable electricity supply is widely regarded as a prerequisite for sustained economic growth and job creation.
Whether Transgrid Enerco and its partners can deliver a turnaround at Eko DisCo may ultimately shape investor confidence in Nigeria’s broader infrastructure reform agenda.
