The Asset Management Corporation of Nigeria (AMCON) has officially sold its 60% stake in Ibadan Electricity Distribution Company (IBEDC) for ₦100 billion ($62 million), according to CEO Gbenga Alade. However, this sale is currently under legal scrutiny.
Why the Sale Is Controversial
First, civil society organization African Initiative Against Abuse of Public Trust has dragged AMCON, the Bureau of Public Enterprises (BPE), Nigerian Electricity Regulatory Commission (NERC), and IBEDC to court. They argue that the sale is “grossly undervalued,” “secretive,” and possibly illegal.
They point out that AMCON acquired the stake in 2021 through receivership after the original investor defaulted on loans. That investor had bought the stake in 2013 for $169 million—far above the current $62 million price. Thus, the CSO claims the transaction erodes about $107 million of public value.
Legal Actions and Public Interest
The CSO’s lawsuit (FHC/ABJ/CS/866/2025) seeks several rulings:
- Declare that AMCON holds the shares in trust for Nigerians and can’t sell below acquisition cost.
- Set $169 million as the minimum legal sale price.
- Nullify any transaction below that threshold.
- Restrain BPE and NERC from approving the sale if below the $169 million valuation.
- Void any sale done without public bidding.
Furthermore, they’re calling on anti-corruption agencies like the EFCC and ICPC to investigate and ensure accountability.
AMCON Defends the Deal
Meanwhile, AMCON’s Gbenga Alade insists the sale is valid. He claims they renegotiated the sale and secured “almost double” the initial ask—thus acting in the public interest. He added they’ll defend the process legally and soon hand over the operations to the new investor.
Moreover, this dispute unfolds amid broader federal government reforms aimed at overhauling underperforming DisCos. Power Minister Adebayo Adelabu has announced pilot restructuring of a few distressed distribution companies, including IBEDC, in partnership with JICA. This package includes regulatory reforms, infrastructure upgrades, and public education
