$62m proposed Ibadan Disco sale: Court fixes suit against AMCON for hearing

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The Federal High Court in Abuja on Thursday, fixed Sept. 9 for hearing of a suit filed against the Asset Management Corporation of Nigeria (AMCON) over the proposed sale of a 60 per cent equity stake in the Ibadan Electricity Distribution Company (IBEDC) for $62 million.

Justice Emeka Nwite fixed the date following an application by counsel for the plaintiff, Chibuzor Ezike, for an adjournment to enable him respond to processes served on him by the defence lawyers.

The plaintiff, a civil society organisation (CSO), under the auspices of the African Initiative Against Abuse of Public Trust, had filed the suit.

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 respectively.

The group is challenging what it described as a “secretive, illegal and corruptly undervalued” sale.

It claimed that the deal would lead to a loss of $107 million compared to the $169 million paid for the same stake during the 2013 privatisation of IBEDC.

The CSO, in suit dated May 5 and filed by 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 per cent equity stake cannot be sold for less than the original purchase price of $169 million.

It maintained that the proposed N100 billion sale (about $62m) undermines transparency, violates procurement laws and serves private interests over public good.

It also prayed the court to 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.

The group urged the court to restrain BPE and NERC from approving or consenting to any sale of the shares below the stated valuation.

The plaintiff equally sought 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.

When the matter was called on Thursday, Ezike informed the court of the receipt of processes from the defence and sought a date for hearing and to enable him respond appropriately.

Lukman Fagbemi, SAN; David Essien and Victor Ogbanachi, who represented the 1st to 3rd defendants, did not oppose

Lukman Fagbemi, SAN representing the 1st defendant, and David Essien and Victor Ogbanachi, represented the 1st to 3rd defendants, and the judge adjourned until Sept. 9 for hearing.

Only the 4th defendant was not represented by counsel.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled: Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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