Court Approves Receivership for Ikeja Electric, Egbin Power as Debt Crisis Hits Nigeria’s Power Sector 

Justice Akintayo Aluko of the Federal High Court in Lagos has upheld the appointment of Kunle Ogunba, (SAN), as Receiver/Manager over Ikeja Electricity Distribution Company (IKEDC), KEPCO Energy Resources Nigeria Limited, and its 70% stake in Egbin Power Plc—Nigeria’s largest power generation company.

The ruling confirms the deepening financial distress in the electricity sector.

The decision follows receivership proceedings initiated by a consortium of 12 Nigerian banks, including Zenith Bank, UBA, FCMB, Union Bank, Sterling Bank, Fidelity Bank, Ecobank, Access Bank, Keystone Bank, First Bank, First Trustees, and FBNQuest Merchant Bank, over unpaid debts.

With this development, IKEDC becomes the sixth electricity distribution company (DisCo) to fall under receivership. Five others—Abuja, Benin, Kaduna, Kano, and Ibadan DisCos—were previously taken over by banks or the Asset Management Corporation of Nigeria (AMCON) following the 2013 privatization.

The financial crisis at the DisCos is now spreading to generation companies (GenCos), which recently met with President Bola Tinubu over a N4 trillion debt owed by the federal government.

Court documents reveal that Ogunba’s appointment was formalized on June 19, 2025, by FBNQuest Trustees Ltd., based on a 2013 security agreement.

Justice Aluko dismissed objections from KEPCO Energy Resources Nigeria Limited, New Electricity Distribution Company Limited, and NG Power-HPS Limited, describing the receivership as a “completed act.”

The case has been adjourned to October 20, 2025, but the receivership remains in effect.

A public notice has instructed all debtors and creditors of KEPCO and its affiliates to preserve assets and submit claims within 14 days from August 6, 2025. Banks, regulators, and key sector players—including the Nigerian Bulk Electricity Trading Plc (NBET), Nigerian Electricity Regulatory Commission (NERC), and Bureau of Public Enterprises (BPE)—have been directed to freeze all related accounts and shares pending further court orders.

Last week, President Tinubu held emergency talks with power generation companies to address the N4 trillion debt crisis threatening the sector.

Power Minister Bayo Adelabu warned that without urgent intervention, generation shutdowns could destabilize the economy and reverse recent reforms.

Adelabu called for partial debt repayment to sustain operations while audits are finalized, stressing that the Tinubu administration’s reforms aim to create a self-sufficient power market. However, with more DisCos falling into receivership, the sector’s stability remains in jeopardy.

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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