The Asset Management Corporation of Nigeria (AMCON) has confirmed the sale of a 60 percent stake in the Ibadan Electricity Distribution Company (IBEDC) for N100 billion. The announcement was made by AMCON’s Managing Director and CEO, Gbenga Alake, during a media briefingon.
Alake revealed that the sale price nearly doubled the initial offer, after AMCON intervened to renegotiate what it considered an undervalued bid. He stated, “When we came in, it had already been sold. We said no, it cannot be. We insisted on a new offer, and at the end of the day, we got almost double of what Ibadan DisCo was going to be sold for.” The company will soon be handed over to the preferred bidder, whose identity has not been disclosed.
The sale is part of the federal government’s broader plan to divest from five power distribution companies currently under AMCON and bank management, including Abuja, Benin, Kaduna, and Kano DisCos.
However, the transaction has sparked legal disputes. The African Initiative Against Abuse of Public Trust, a civil society organization, filed a lawsuit challenging the sale as “secretive and illegal.” The suit alleges that the $62 million price tag for the 60 percent stake significantly undervalues IBEDC, which was valued at $169 million during its 2013 privatisation. The group claims the deal could result in a $107 million loss to the Nigerian government.
Despite ongoing court challenges, AMCON maintains confidence in the legality and transparency of the sale process. Alake stated, “We have sold it… and whatever is still happening in court, we will face it.”
The sale of IBEDC marks a critical step in Nigeria’s power sector reforms, aiming to improve efficiency and attract private investment into the electricity distribution network.
