Court Hears Suit Against AMCON’s $62m Sale Of IBEDC Stake In September
A Federal High Court sitting in Abuja, on Thursday, fixed September 9 to hear a suit filed by a civil society organisation against the Asset Management Corporation of Nigeria (AMCON) over the proposed sale of a 60% equity stake in the Ibadan Electricity Distribution Company (IBEDC) for $62m.
The African Initiative Against Abuse of Public Trust is challenging what it describes as a “secretive, illegal, and corruptly undervalued” sale, claiming the deal would lead to a loss of $107m compared to the $169m paid for the same stake during the 2013 privatization of IBEDC.
In the suit marked FHC/ABJ/CS/866/2025, AMCON, Bureau of Public Enterprises (BPE), Nigerian Electricity Regulatory Commission (NERC), and the IBEDC are listed as 1st to 4th defendants.
The group, in the suit dated May 5 and filed through their counsel, Chibuzor C. Ezike, is urging the court to stop the transaction, arguing that AMCON having taken over the stake through a receivership process holds the shares in trust for the Nigerian public and cannot dispose of them at a loss.
The plaintiff wants the court to declare that AMCON is duty bound to act in the best interest of Nigerians, and that the 60% equity stake cannot be sold for less than the original purchase price of $169m.
The group maintained that the proposed N100bn sale (about $62m) undermines transparency, violates procurement laws, and serves private interests over public good.
Among other reliefs sought, the plaintiff is asking the court for a “declaration that AMCON holds the 60% equity stake in IBEDC in trust for the Nigerian public and is bound to act in their best interest.
“A declaration that the 2013 valuation of $169m for the 60% stake remains the minimum permissible price for any future sale, transfer, or disposal.”
They also prayed the court to nullify any transaction involving the sale of the shares at a value below $169m, citing it as illegal, corrupt, and an abuse of office, as well as restrain BPE and NERC from approving or consenting to any sale of the shares below the stated valuation.
The plaintiff is also seeking an order setting aside any concluded or attempted transaction conducted in violation of these principles, while praying the court to award legal costs as deemed appropriate.
At Thursday’s proceedings, Chibuzor Ezike represented the platiiff while, Lukman O. Fagbemi, a Senior Advocate of Nigeria, David Essien and Victor Ogbanachi, represented the 1st to 3rd defendants.
The 4th defendant was not represented by counsel.
Ezike informed the court that he has recieved processes from the defendants and applied for a hearing date to enable them respond to the processes and commence hearing.
The presiding judge, Justice Emeka Nwite subsequently adjourned preceedings to September 29 2025 for hearing.
Court Hears Suit Against AMCON’s $62m Sale Of IBEDC Stake In September is first published on The Whistler Newspaper
