CSO sues AMCON, others over Ibadan Disco sale
Civil society group, African Initiative Against Abuse of Public Trust, has filed a suit at Federal High Court in Abuja to challenge proposed sale of a 60 per cent equity stake in Ibadan Electricity Distribution Company (IBEDC) for $62 million.
It described the amount as an undervaluation of the asset.
Asset Management Corporation of Nigeria (AMCON), Bureau of Public Enterprises (BPE), Nigerian Electricity Regulatory Commission (NERC), and IBEDC are the defendants.
The plaintiff in suit FHC/ABJ/CS/866/2025 contends that the transaction would result in a $107 million loss compared to the $169 million paid for the same stake during IBEDC’s privatisation in 2013.
Represented by attorneys, led by Chibuzor C. Ezike, the group is asking the court to declare that AMCON, which holds the 60 per cent in trust for Nigerians, cannot sell or assign the shares for less than the original acquisition cost.
The plaintiff argues that the price—pegged at N100 billion (about $62 million)—represents a $107 million loss and contravenes public interest.
The plaintiff argues that the sale violates procurement principles and undermines transparency in asset management.
It urged EFCC, ICPC and others to intervene and ensure accountability.
The suit contends that selling such a vital public asset far below its value constitute economic sabotage and erodes public trust and contribute to the deepening energy crisis.
The plaintiff is praying the court to “declare that AMCON holds the 60 per cent equity stake in IBEDC in trust for the Nigerian public and should act in their interest; and declare that the 2013 valuation of $169 million for the 60 per cent stake remains the minimum permissible price for any future sale, transfer, or disposal.
“Nullify any transaction involving the sale of the shares at a value below $169 million, citing it as illegal, corrupt, and an abuse of office.
“Restrain BPE and NERC from approving or consenting to any sale of the shares below the stated valuation, among others.’’
“Set aside any concluded or attempted transaction conducted in violation of these principles.
“Award legal costs as deemed appropriate by the court.”
The plaintiff filed a statement of claim, a verifying affidavit, and documentary exhibits, including privatisation documents, media reports, and public notices, in support of its case.
The CSO recounted the privatisation history of IBEDC, stating that in 2013, the 60 per cent equity stake was sold to Integrated Energy Distribution and Marketing Company Limited for $169 million, based on a valuation conducted by the National Council on Privatisation and BPE.
Following a default on loan obligations by the investor, AMCON assumed control of the shares via a receivership process, having acquired the loan from Polaris Bank (formerly Skye Bank) as an eligible bank asset.
The plaintiff alleges that AMCON now plans to quietly sell the shares to “preferred investors” at N100 billion ($62 million), without a public bid or transparency, in a manner that undermines accountability and potentially facilitates corrupt enrichment.
The plaintiff cited a Nigerian Tribune report dated April 10, 2025, titled “IBEDC Sale, Another National Asset Giveaway”, which criticised the deal as opaque and potentially corrupt.
The report noted that IBEDC, Nigeria’s largest power distribution company, is responsible for electricity supply to over 30 million people across Oyo, Ogun, Osun, Kwara, and parts of Kogi, Ekiti, and Niger states.
According to the publication, IBEDC’s asset base is reportedly valued at over N1 trillion, yet it is being sold for just a fraction of that.
The report raised alarm about the secrecy of the transaction and the absence of competitive bidding, accusing AMCON, BPE, and NERC officials of facilitating a “giveaway” of a critical national asset.
The court is yet to fix a date for the hearing.
