The Centre for the Promotion of Private Enterprise (CPPE) has attributed the unexpected receivership of Ikeja Electric to the country’s stifling interest rate regime and unresolved contradictions in the power sector’s structure.
This disclosure was made in a statement signed by the organisation’s Director/CEO, Dr Muda Yusuf, on Wednesday.
The CPPE statement said, “it is quite curious and perturbing that Ikeja Electric, often touted as the best-performing electricity distribution company in the country with a prosperous customer base, has ended up in receivership.
“This development suggests a similar fate could await other distribution companies in the near term,” the statement added.
The organisation stated the crisis afflicting Ikeja Electric and, by extension, other electricity distribution companies (DisCos), is a clear reflection of the harsh macroeconomic environment—most notably, the burden of prohibitive interest rates.
“What has happened to the DISCOs is also partly a consequence of the prohibitive interest rate in the economy, given the high degree of leveraging of most of the DISCOs. It is very difficult for any long-term project to survive the current excruciating lending rate in the economy,” he noted.
With its Monetary Policy Rate (MPR) retained at 27.5% by the Central Bank of Nigeria (CBN) in July 2025, Nigeria ranks among the countries with the highest borrowing costs in Africa.
Dr. Yusuf further identified a fundamental structural imbalance in the Nigerian power sector, noting that conflicting interests between investors, consumers, and political actors have created a tangled web of challenges.
“There are additionally clear conflicts between the commercial objectives of private investors (DisCos and GenCos), the citizens’ desire for affordable electricity, the quest by industrialists for an investment-friendly electricity tariff, and a politically acceptable tariff regime. The government’s obstruction and the citizens’ opposition to cost-reflective tariffs, despite demands from private investors in the sector, further complicate the situation. This created numerous contradictions and conflicts that require careful and painstaking strategic resolution.”
The management of Egbin Power Plc, Ikeja Electric Plc (IE), and First Independent Power Limited (FIPL) has earlier denied being in receivership, adding that the court has warned against “adverse actions” by a party.
Babatunde Osadare, Chief Legal and Regulatory Officer of Ikeja Electric, refuted false media reports alleging the appointment of “Kunle Ogunba Esq. SAN” as Receiver/Manager over the said entities.