TRANSCORP acquires 60% stake in Abuja DISCO

 A consortium, led by Transcorp Power Limited, has successfully acquired a majority stake of 60 percent in Abuja Electricity Distribution Company (AEDC). This acquisition has resulted in the appointment of Christopher Ezeafulukwe as the new Managing Director/Chief Executive Officer (MD/CEO) of AEDC. Ezeafulukwe, who is currently the MD/CEO of Transcorp Power Limited, will play a crucial role in revitalizing AEDC, which is responsible for supplying power to the nation's capital.

Before taking on his new position at AEDC, Ezeafulukwe served as the MD/CEO of Transcorp Power Ltd in Ughelli, a thermal plant with a capacity of 972 MW. According to a statement, Transcorp Power Ltd, under Ezeafulukwe's leadership, has been at the forefront of the Nigerian power sector. They were the first successor power company from the 2013 power privatization program to be discharged from post-privatization monitoring by the National Council on Privatization, surpassing expectations.

Transcorp Group, led by Tony Elumelu, obtained approval as the strategic investor in AEDC in May 2023. The group's acquisition of the Ughelli Power plant during the power sector privatization in 2013 demonstrated their transformative capabilities. The plant's available capacity increased by 227% under Transcorp Group's ownership, surpassing the Bureau of Public Enterprise's five-year target.

Following Ezeafulukwe's appointment as MD/CEO of AEDC, Peter Ikenga, the CEO of Transcorp Energy, is expected to succeed him as MD of Transcorp Power.

In December 2021, United Bank of Africa (UBA) took over AEDC due to the failure of its major stakeholder, Kann Consortium, to repay the $122 million debt owed to the bank. Kann Consortium had obtained a loan from UBA to acquire a majority stake in AEDC in 2013. However, in April 2023, UBA announced its intention to sell AEDC in order to recover the outstanding debt.

In May 2023, the national council on privatization approved the Transcorp-led consortium as the preferred bidder for AEDC. This acquisition marks a significant development in the power sector and sets the stage for AEDC's future growth and success.