- A civil society group sued AMCON, BPE, NERC, and IBEDC at the Federal High Court in Abuja, challenging the proposed sale of a 60% stake in IBEDC for $62m.
- The group urged the court to halt the transaction, declare the original $169m valuation as the minimum sale price, and investigate officials for breaching public trust and violating procurement laws.
The African Initiative Against Abuse of Public Trust, a civil society group, has filed a suit at the Federal High Court in Abuja to halt the proposed sale of a 60% equity stake in the Ibadan Electricity Distribution Company (IBEDC) for $62 million. The group alleges that the transaction is “secretive, illegal, and corruptly undervalued.”
In the suit, marked FHC/ABJ/CS/866/2025, the organisation is challenging the conduct of the Asset Management Corporation of Nigeria (AMCON), the Bureau of Public Enterprises (BPE), the Nigerian Electricity Regulatory Commission (NERC), and IBEDC. It claims the sale would result in a public loss of $107 million compared to the $169 million paid for the same stake during the 2013 privatisation.
Represented by a legal team led by Chibuzor C. Ezike, the group argues that AMCON, having acquired the stake through a receivership process, holds the shares in trust for the Nigerian public and must protect the public interest.
The plaintiff is asking the court to:
- Declare that AMCON holds the 60% equity stake in trust for Nigerians and must act in their best interest.
- Affirm that the original 2013 valuation of $169 million remains the minimum permissible price for any future sale or disposal.
- Nullify any transaction involving the sale of the shares below the original purchase price, describing it as unlawful and an abuse of office.
- Restrict BPE and NERC from endorsing or approving any sale below the stated valuation.
- Set aside any concluded or ongoing transaction that violates these terms.
- Award legal costs as deemed appropriate by the court.
The organisation submitted a statement of claim to support its claims, verifying affidavit and accompanying documents, including privatisation records, media reports, and public notices.
The group recalled that in 2013, the 60% stake in IBEDC was sold to Integrated Energy Distribution and Marketing Company for $169 million, based on a valuation conducted by the National Council on Privatisation and the BPE.
However, after the investor defaulted on a loan from Polaris Bank (formerly Skye Bank), AMCON reportedly acquired the non-performing loan and took control of the shares through receivership.
The plaintiff further alleged that AMCON intends to quietly sell the shares for N100 billion (approximately $62 million) to preferred buyers without public advertisement or competitive bidding. It described the move as a “clear breach of public trust and due process.”
Referencing an April 10, 2025, report published by the Nigerian Tribune, titled “IBEDC Sale, Another National Asset Giveaway”, the group highlighted widespread concerns about the transaction’s transparency and alleged potential for corruption.
According to the publication, IBEDC, Nigeria’s largest electricity distribution company, serves over 30 million people across Oyo, Ogun, Osun, Kwara, and parts of Kogi, Ekiti, and Niger states. The report stated that despite an asset base reportedly exceeding N1 trillion, the company is now sold for just a fraction of its value.
The group warned that the proposed deal amounts to economic sabotage, undermines procurement laws, and prioritises private interests over the public good. It also urged anti-corruption agencies such as the EFCC and ICPC to investigate the deal and prosecute any individuals found culpable.
As of now, the court has not fixed a date for the hearing.