The Asset Management Corporation of Nigeria (AMCON) has confirmed the controversial sale of the Ibadan Electricity Distribution Company (IBEDC) for N100 billion, despite an ongoing lawsuit challenging the legitimacy and transparency of the transaction.
Speaking during a media parley on Thursday, Gbenga Alake, Managing Director and CEO of AMCON, announced that the electricity firm had been successfully sold and would soon be handed over to the new owners.
“Today, I can confirm to you that Ibadan DisCo has been sold,” Alake declared. “When we arrived, there was already a deal in place, but we rejected the offer. We insisted on a new bidding process, and in the end, we secured nearly double the original offer price.”
While hailing the outcome as a financial win, Alake acknowledged the deal has not gone without controversy. “There are now multiple parties raising objections and taking legal action. But we have sold it, and we will deal with whatever unfolds in court,” he said.
The sale comes as part of a broader move by the Nigerian government to offload five power distribution companies previously under the control of banks and AMCON. These include:
- Ibadan Electricity Distribution Company (IBEDC)
- Abuja Electricity Distribution Company (AEDC)
- Benin Electricity Distribution Company
- Kaduna Electricity Distribution Company
- Kano Electricity Distribution Company
However, the transaction has faced backlash from civil society. In May 2025, the African Initiative Against Abuse of Public Trust, a non-governmental organisation, filed a suit at the Federal High Court in Abuja (case number FHC/ABJ/CS/866/2025) against AMCON, the Nigerian Electricity Regulatory Commission (NERC), the Bureau of Public Enterprises (BPE), and IBEDC.
The group described the sale as “secretive and illegal”, alleging that the deal undervalued public assets. According to the lawsuit, the 60 percent stake was sold for $62 million, a significant drop from the $169 million paid during the 2013 privatisation, potentially resulting in a loss of $107 million to the Nigerian public.
As legal proceedings continue, the controversy surrounding the IBEDC sale underscores growing concerns about transparency, asset valuation, and accountability in Nigeria’s power sector reforms.
