The Asset Management Corporation of Nigeria (AMCON) has announced the sale of the Ibadan Electricity Distribution Company (IBEDC) for N100 billion—almost twice the amount proposed at the start of the transaction.
AMCON’s Managing Director and Chief Executive Officer, Gbenga Alake, disclosed this during a media briefing with journalists on Thursday. He noted that the final deal reflects AMCON’s determination to secure greater value from the sale.
“When we assumed management of IBEDC, it had already been slated for sale,” Alake said. “However, we rejected the initial offer and reopened the bidding process. In the end, we secured nearly double the original bid.”
IBEDC is one of five power distribution companies listed for sale by the federal government in April 2024. These companies are currently under the management of AMCON and commercial banks. The others include Abuja Electricity Distribution Company (AEDC), Benin Electricity Distribution Company, Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company.
Despite AMCON’s confidence in the transparency and legitimacy of the sale, the transaction is now the subject of a legal challenge. On May 15, 2025, the African Initiative Against Abuse of Public Trust, a civil society anti-corruption group, filed a suit at the Federal High Court in Abuja. The case—FHC/ABJ/CS/866/2025—lists AMCON, the Nigerian Electricity Regulatory Commission (NERC), the Bureau of Public Enterprises (BPE), and IBEDC as defendants.
The group alleges that the sale was “secretive and illegal,” claiming that the 60 percent stake in IBEDC was sold for $62 million (about N52 billion), far below its value. This contrasts sharply with the $169 million reportedly paid during the company’s initial privatisation in 2013, which the group argues represents a public loss of $107 million.
IBEDC, one of Nigeria’s 11 power distribution firms, came under AMCON’s control in early 2022 following a loan default by one of its major investors. In February 2023, a Federal High Court in Lagos temporarily halted any sale of the company, citing ongoing litigation over AMCON’s authority to dispose of its assets.
Nevertheless, AMCON proceeded with the sale in line with federal directives. According to Alake, the corporation turned down earlier offers and reopened the process, eventually agreeing to the N100 billion deal. Based on current exchange rates (N840/$1 as of July 3, 2025), the sale is valued at roughly $119 million—well above the $62 million referenced in the lawsuit.
Alake emphasized that the sale aligns with AMCON’s core mission to recover debts and liquidate non-performing assets. If completed, the transaction could serve as a model for the sale of other DisCos and a catalyst for enhanced public-private partnerships aimed at improving Nigeria’s electricity sector.
