Eko Distribution Company Moves to Sell Majority Stake to Consortium

• The parent company of Eko Electricity Distribution Company is currently selling every stake it owns in the electricity supplier
• The partnership is comprised of the oil and gas company Axxela, Stanbic Infrastructure Fund, Shiroro Dam's owners, and North-South Power
• The group won the opportunity to buy a share in Eko Disco after a competitive procedure that began in early 2024

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

West Power and Gas Limited (WPG), the parent firm of Eko Electricity Distribution firm (EKEDC), is in the process of selling all of its shares in the electricity provider.

Nairametrics reported that a consortium that won the bid had paid the necessary 10% commitment fee, citing persons with firsthand knowledge of the deal.

North-South Power (NSP), the proprietors of Shiroro Dam, Stanbic Infrastructure Fund, and the oil and gas firm Axxela make up the consortium.

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According to the sources, a competitive process that started in early 2024 resulted in the group winning the bid to purchase a stake in Eko Disco.

The parties are currently in the conditions precedent phase, requiring several conditions to be met before the agreement can be finalised.

A source familiar with the deal told the publication that NSP gains from the acquisition because it provides the power production business with direct control and insight into DisCo's operations, enabling it to access cash flow.

Another source claims that power production companies now have more incentives to buy DisCos because of the recent switch to bilateral contracts between distribution and generation businesses.

The report gave instances stating that Sahara Power, the owners of Egbin Power Plant, owns the majority of Ikeja Electric, while Transcorp Power, the owners of Ughelli Power Plant, holds a sizable position in Abuja DisCo.

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According to the report, the acquisition is anticipated to close early in 2025 and might be worth over $200 million. The ultimate purchase price will be decided if the previous conditions are met.

FG grants licence for Ogun State

Legit.ng earlier reported that the Nigerian Energy Regulatory Commission stated that the newly formed Ogun State Electricity Regulatory Commission would now have regulatory control over the state's energy market.

In a statement published on its official X feed on Monday, December 30, 2024, the commission disclosed this change, which occurred days after it had given the Lagos State Electricity Regulatory Commission regulatory authority.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng