CSO Sues AMCON, Others Over Alleged Undervalued Sale of Ibadan Disco for $62m

A civil society organization, African Initiative Against Abuse of Public Trust, has filed a suit against the Asset Management Corporation of Nigeria (AMCON), the Bureau of Public Enterprises (BPE), the Nigerian Electricity Regulatory Commission (NERC), and the Ibadan Electricity Distribution Company (IBEDC) over the alleged plan to sell 60% equity in IBEDC at a “giveaway price” of $62 million—far below the $169 million reportedly paid for the same stake in 2013.

The suit, marked FHC/ABJ/CS/866/2025 and filed at the Federal High Court, Abuja, seeks to stop what the plaintiff describes as an illegal, secretive, and grossly undervalued transaction that constitutes a waste of public assets and a violation of public trust.

Represented by a team of lawyers led by Chibuzor C. Ezike, the CSO is asking the court to declare that AMCON, as a public agency holding the 60% stake in trust for Nigerians, cannot sell or assign the shares for less than the original acquisition cost.

The plaintiff argues that the sale price—reportedly pegged at N100 billion (about $62 million)—represents a $107 million loss and contravenes public interest.

Among the declarations and orders sought, the plaintiff is asking the court to:

Declare that AMCON holds the 60% equity stake in IBEDC in trust for the Nigerian public and is bound to act in their best interest.

Declare that the 2013 valuation of $169 million for the 60% stake remains the minimum permissible price for any future sale, transfer, or disposal.

Nullify any transaction involving the sale of the shares at a value below $169 million, citing it as illegal, corrupt, and an abuse of office.

Restrain BPE and NERC from approving or consenting to any sale of the shares below the stated valuation.

Set aside any concluded or attempted transaction conducted in violation of these principles.

Award legal costs as deemed appropriate by the court.

The plaintiff filed a statement of claim, a verifying affidavit, and documentary exhibits, including privatization documents, media reports, and public notices, in support of its case.

The CSO recounted the privatization history of IBEDC, stating that in 2013, the 60% equity stake was sold to Integrated Energy Distribution and Marketing Company Limited for $169 million, based on a valuation conducted by the National Council on Privatization and BPE.

Following a default on loan obligations by the investor, AMCON assumed control of the shares via a receivership process, having acquired the loan from Polaris Bank (formerly Skye Bank) as an eligible bank asset.

The plaintiff alleges that AMCON now plans to quietly sell the shares to “preferred investors” at N100 billion ($62 million), without a public bid or transparency, in a manner that undermines accountability and potentially facilitates corrupt enrichment.

The plaintiff cited a Nigerian Tribune report dated April 10, 2025, titled “IBEDC Sale, Another National Asset Giveaway”, which criticized the deal as opaque and potentially corrupt.

The report noted that IBEDC, Nigeria’s largest power distribution company, is responsible for electricity supply to over 30 million people across Oyo, Ogun, Osun, Kwara, and parts of Kogi, Ekiti, and Niger states.

According to the publication, IBEDC’s asset base is reportedly valued at over N1 trillion, yet it is being sold for just a fraction of that. The report raised alarms about the secrecy of the transaction and the absence of competitive bidding, accusing AMCON, BPE, and NERC officials of facilitating a “giveaway” of a critical national asset.

The plaintiff argues that the sale violates procurement principles and undermines transparency in public asset management. It called on anti-corruption agencies, including the EFCC and ICPC, to intervene and ensure accountability.

The Plaintiff in the suit contends that selling such a vital public asset far below its assessed value would not only constitute economic sabotage but would also erode public trust and contribute to the deepening energy crisis in Nigeria.

The Court is yet to fix a date for hearing of the suit.