•Says debtors have damaged economy
By Uche Usim
The Asset Management Corporation of Nigeria (AMCON), on Thursday, confirmed the sale of the Ibadan Electricity Distribution Company (IBEDC) for N100 billion.
The Corporation also accused debtors of undermining the Nigerian economy, alleging that many never intended to repay the loans they secured from various banks.
The IBEDC sale, made to an undisclosed bidder, is a major step in the federal government’s ongoing divestment from distressed electricity distribution companies.
The Managing Director and Chief Executive Officer of AMCON, Gbenga Alade, made the disclosure during a media parley with senior journalists in Lagos.
He noted that the transaction, which is part of the federal government’s wider power sector reforms, will soon be concluded with the handover of IBEDC to the preferred bidder.
“Today, I announce to you that Ibadan DisCo has been sold,” Alake declared.
He continued: “When we came in, it had already been sold. It was sold for how much? We got in and said no, it cannot be. We said they should go and submit a new offer, that we were not going to sell for that. At the end of the day, we got almost double of what Ibadan DisCo was going to be sold for.”
The sale, however, has not been without controversy. Alade acknowledged that the deal has attracted legal challenges, describing the current landscape as one riddled with “so many interests now fighting and writing.”
On recalcitrant debtors, the AMCON boss noted that going after them is a tall order that requires unflinching determination.
“Dealing with AMCON’s recalcitrant debtors is not easy, but dealing with such debtors who are in government, holding very high positions across different decision-making portfolios in governance in the country, is one of the most challenging tasks that I have ever faced in my career.
“But we are not deterred by these antics. Our appointment is a call to serve the motherland and we will deliver that with all humility and sincerity of purpose.
“If you recall, the last time we met, we told you there was a ban on asset sales. But today, with the Board now in place, the sale of assets by AMCON has been lifted, and consequently, we have sold some high-profile assets running into several billions of naira”, Alade stated.
He further disclosed that Arik Air (in Receivership) is returning to profitability and that the board’s engagements with AfreximBank are yielding positive results.
“Aero Contractors is also delivering massive value in the country. As of today, Aero is the only airline in Nigeria with an MRO, and that can only be the result of effective and prudent management”, he added.
To ramp up recoveries, Alade said, “We have also commissioned some foreign asset tracers who will help us locate where some of these obligors have hidden their assets across the globe”.
Deepening comments on IBEDC, he said the divestment is almost completed and that AMCON would soon hand over the company to the preferred bidder.
Alade added that even as the current leadership of AMCON has stretched the bidders to get the best and most realistic value, there are still some distractions out there.
Despite the legal hurdles, the AMCON boss expressed confidence in the integrity of the process.
“We have sold it… and whatever is still happening in court, we will face it,” he said.
IBEDC is one of five power distribution companies that the federal government announced in April 2024 it would be selling. The others include Abuja Electricity Distribution Company (AEDC), Benin Electricity Distribution Company, Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company.
These firms had been under the administration of AMCON and commercial banks following debt recovery proceedings.
Meanwhile, the African Initiative Against Abuse of Public Trust, a civil society organisation (CSO), has filed a lawsuit before the Federal High Court in Abuja, challenging the deal. In the suit marked FHC/ABJ/CS/866/2025, the group alleges that the proposed sale of a 60 percent stake in IBEDC for $62 million was “secretive and illegal.”
The CSO claims the transaction undervalues the asset, asserting that the stake was worth $169 million during the 2013 privatisation exercise. “The deal, if allowed, would result in a loss of $107 million,” the group said, calling for judicial intervention to halt the sale.
Despite the mounting legal and public scrutiny, AMCON appears poised to proceed, maintaining that the process was fair, transparent, and financially beneficial to the Nigerian government.