Court Warns Parties to Respect Judiciary as UBA Challenges AMCON’s N100bn Sale of IBEDC Stake

Justice Dehinde Dipeolu of the Federal High Court, Lagos Division, has ordered parties in a pending suit filed by the United Bank for Africa Plc (UBA) to refrain from actions that could undermine the integrity and dignity of the judiciary.

The order came during proceedings on UBA’s challenge to the sale of a 60% stake in the Ibadan Electricity Distribution Company (IBEDC) by the Asset Management Corporation of Nigeria (AMCON).

UBA is seeking to nullify the transaction, alleging that the N100 billion divestment was carried out without its consent, violated due process, and grossly undervalued the asset.

The bank, a key lender to Integrated Energy Distribution and Marketing Limited (IEDM), the original holder of the IBEDC stake described the sale as unlawful and sub judice, insisting it is in contempt of ongoing proceedings before Justice Akintayo Aluko of the same court.

AMCON Managing Director/CEO, Gbenga Alade, had confirmed the sale at a press conference in Lagos, describing it as a strategic move.

However, UBA condemned the briefing as an affront to the judiciary and signaled plans to initiate contempt proceedings against AMCON.

At Wednesday’s session before Justice Dipeolu, UBA’s counsel, Mr. Gbenga Akinde-Peters, drew the court’s attention to a July 14 letter in which AMCON disclosed its intention to disburse proceeds from the sale despite the pending suit and a subsisting application to restrain such action.

He also criticized AMCON’s public comments, alleging they showed “flagrant disregard” for the judicial process.

Although AMCON was not represented in court, counsel for Archlight Nigeria Limited—the company that purportedly purchased the IBEDC stake, Mr. Babatunde Ogala, SAN, informed the court that AMCON’s lawyer, Dr. Francis Agbu, SAN, requested an adjournment due to bereavement.

He urged the court to retain the original October 2, 2025 hearing date earlier agreed by parties.

Akinde-Peters opposed the request, emphasising the urgency of the matter and warning that disbursement of the sale proceeds could cause irreparable harm to UBA.

In a ruling aimed at balancing the interests of justice, Justice Dipeolu adjourned the case to August 18, 2025, for mention and directed that AMCON must be represented at the next sitting.

The judge further ordered all parties to “protect the integrity and dignity of the judiciary” and refrain from actions that could be perceived as disrespectful to the court.