Group sues AMCON, BPE over alleged ‘undervalued sale’ of IBEDC”

A civil society group has sued the Asset Management Corporation of Nigeria (AMCON), over what it described as an “illegal, secretive, and grossly undervalued” plan to sell a 60 percent equity stake in the Ibadan Electricity Distribution Company (IBEDC) for $62 million.

Also joined in the suit filed in the Federal High Court, Abuja, are the Bureau of Public Enterprises (BPE), the Nigerian Electricity Regulatory Commission (NERC), and IBEDC itself.

The CSO, represented by a legal team led by Chibuzor Ezike, is urging the court to halt the planned transaction, arguing that AMCON, as a public agency, holds the equity in trust for Nigerians and cannot lawfully dispose of it below the original purchase price of $169 million paid in 2013.

The group claims the proposed N100 billion ($62 million) sale price represents a loss of $107 million and is contrary to public interest.

Among its demands, the plaintiff asks the court to:

Declare that AMCON holds the 60 percent equity in IBEDC in trust for the Nigerian people and must act solely in the public interest.

Affirm that the 2013 valuation of $169 million remains the minimum acceptable price for any future sale, transfer, or disposal.

Nullify any transaction that seeks to sell the stake below this threshold, describing such a move as “illegal, corrupt, and an abuse of office.”

Restrain BPE and NERC from approving or facilitating any sale below the 2013 valuation.

Invalidate any completed or pending transaction that contravenes these conditions.

“Award legal costs as deemed appropriate by the court.”

In its filings, which include a statement of claim, a verifying affidavit, and supporting documentation such as media reports, privatization records, and public notices, the CSO detailed the history of IBEDC’s privatization.

It noted that in 2013, the 60 percent equity was sold to Integrated Energy Distribution and Marketing Company Limited for $169 million, following a valuation by the National Council on Privatization and the BPE.

After the investor defaulted on loan obligations, AMCON reportedly took over the shares through a receivership process, having purchased the debt from Polaris Bank (formerly Skye Bank).

According to the plaintiff, AMCON now plans to “quietly” offload the shares to selected investors for N100 billion ($62 million), without public bidding or transparency. The group alleges that this approach undermines accountability and facilitates potential corruption.

Citing an April 10, 2025 report from the Nigerian Tribune titled “IBEDC Sale, Another National Asset Giveaway,” the CSO said the article condemned the planned transaction as opaque and possibly corrupt.

The report emphasized that IBEDC, Nigeria’s largest electricity distribution company, serves more than 30 million people across Oyo, Ogun, Osun, Kwara, and parts of Kogi, Ekiti, and Niger states, and possesses an asset base reportedly worth over N1 trillion—far above the proposed sale price.

The CSO insists that the transaction violates public procurement rules, lacks transparency, and could amount to economic sabotage.

It also urged the EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the matter and hold those involved accountable.

The group warns that the sale of a critical power asset at a heavily discounted price could erode public trust and worsen the country’s ongoing energy crisis.

The court has yet to set a date for the hearing.