AMCON, others sued over alleged undervalued sale of IBEDC

By Lukman Olabiyi

The African Initiative Against Abuse of Public Trust, a civil society organisation, has filed a lawsuit at the Federal High Court in Abuja against the Asset Management Corporation of Nigeria (AMCON), Bureau of Public Enterprises (BPE), Nigerian Electricity Regulatory Commission (NERC), and Ibadan Electricity Distribution Company (IBEDC) over the proposed sale of a 60% equity stake in IBEDC for $62 million (₦100 billion).

The group alleges the sale is grossly undervalued, resulting in a $107 million loss compared to the $169 million paid during IBEDC’s 2013 privatisation.

The suit, marked FHC/ABJ/CS/866/2025, aims to stop what the CSO calls an “illegal, secretive, and corruptly undervalued” transaction. Represented by Chibuzor C. Ezike and other lawyers, the plaintiff seeks court declarations that AMCON, holding the stake in trust for Nigerians, cannot sell it below the 2013 valuation and that the current sale is unlawful. It also requests orders to nullify any transaction below $169 million, restrain BPE and NERC from approving it, and award legal costs.

The CSO claims IBEDC, Nigeria’s largest power distributor serving over 30 million people across seven states, has assets valued at over ₦1 trillion. Citing a Nigerian Tribune report from April 10, 2025, the plaintiff alleges AMCON plans to sell the shares to “preferred investors” without competitive bidding, violating transparency principles.

In 2013, Integrated Energy Distribution and Marketing Company Limited bought the 60% stake for $169 million, but AMCON assumed control in 2022 after a loan default, acquiring the debt from Polaris Bank.

The plaintiff argues the sale undermines public interest and could worsen Nigeria’s energy crisis, urging the EFCC and ICPC to investigate. No hearing date has been set.