CSO Sues AMCON, BPE Over Alleged Undervalued Sale of IBEDC for $62 Million

A civil society organization (CSO) has filed a lawsuit against the Asset Management Corporation of Nigeria (AMCON), accusing it of planning a secretive and grossly undervalued sale of a 60% equity stake in the Ibadan Electricity Distribution Company (IBEDC) for $62 million.

The case, filed at the Federal High Court in Abuja, also lists the Bureau of Public Enterprises (BPE), the Nigerian Electricity Regulatory Commission (NERC), and IBEDC as co-defendants.

The plaintiff, represented by lawyer Chibuzor Ezike, is asking the court to stop the transaction, insisting that AMCON—as a public institution—holds the shares in trust for Nigerians and is legally bound to act in the public interest. The group argues that selling the stake for $62 million represents a significant loss compared to the $169 million paid for the same equity in 2013.

Key demands from the lawsuit include:

A declaration that AMCON must uphold public trust in managing the IBEDC equity.

A court order affirming $169 million as the minimum acceptable sale price.

Nullification of any sale or transaction below the 2013 purchase value.

An injunction to prevent BPE and NERC from approving any sale under the set threshold.

Cancellation of any current or concluded deals that violate these conditions.

Award of legal costs as deemed appropriate by the court.

The CSO backed its claims with supporting court documents, media reports, and privatization records. It highlighted that in 2013, the 60% equity stake in IBEDC was acquired by Integrated Energy Distribution and Marketing Company Limited for $169 million, following a valuation approved by the National Council on Privatization and BPE.

Following loan defaults by the buyer, AMCON reportedly assumed control of the shares through a receivership after purchasing the debt from Polaris Bank (formerly Skye Bank).

According to the group, AMCON is now attempting to quietly sell the shares for N100 billion (about $62 million), without a transparent bidding process. They allege this violates public procurement rules and could facilitate corruption.

Citing an April 10, 2025 Nigerian Tribune report titled “IBEDC Sale, Another National Asset Giveaway,” the CSO pointed out concerns about the lack of transparency. The article criticized the sale of Nigeria’s largest power distribution company—which serves over 30 million people across Oyo, Ogun, Osun, Kwara, and parts of Kogi, Ekiti, and Niger states—for a price far below its estimated N1 trillion asset base.

The CSO is also calling on the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the planned sale, warning that disposing of such a strategic asset at a deep discount could damage public trust and worsen the country’s electricity crisis.

As of now, the court has not scheduled a hearing date.