..Says bank debtors damaged Nigerian economy
…Foreign asset tracers to locate obligors hidden assets
…Arik Air returning to profitability
By Seun Ibiyemi
The Asset Management Corporation of Nigeria (AMCON) has confirmed the sale of the Ibadan Electricity Distribution Company (IBEDC) for ₦100 billion, nearly twice the amount initially proposed during the transaction’s early stages.
This development concludes a process set in motion in April 2024, when the Federal Government mandated AMCON and a consortium of banks to oversee the divestment of five electricity distribution companies (DisCos): IBEDC, Abuja Electricity Distribution Company (AEDC), Benin Electricity Distribution Company, Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company.
“When we assumed management, IBEDC had already been listed for sale,” said AMCON’s Managing Director and Chief Executive Officer, Gbenga Alake. “We turned down the initial bid and reopened the process. Eventually, we secured nearly double the original offer.”
Alake stood by the sale, insisting it was conducted transparently and in the best interest of the public. “We have completed the sale. Whatever legal proceedings still linger, we are prepared to address them,” he said.
The transaction has, however, triggered a legal challenge from the African Initiative Against Abuse of Public Trust, a civil society group focused on transparency and anti-corruption. The organisation filed suit FHC/ABJ/CS/866/2025 at the Federal High Court in Abuja against AMCON, the Nigerian Electricity Regulatory Commission (NERC), the Bureau of Public Enterprises (BPE), and IBEDC.
The group alleged the deal was carried out “secretly and illegally” and claimed the 60 percent stake in IBEDC was undervalued at $62 million (approximately ₦52 billion at current exchange rates), compared to the $169 million reportedly paid during the original privatisation in 2013. This, it argued, reflected a loss of $107 million in public assets.
IBEDC, one of the country’s 11 distribution firms, fell under AMCON’s control in early 2022 following the investor’s default on a loan. In February 2023, a Federal High Court in Lagos issued a temporary injunction restraining AMCON from selling the utility, citing pending litigation around its authority to dispose of the assets.
Despite ongoing court proceedings, AMCON proceeded with the divestment under a federal directive. Alake noted that the corporation had turned down a lower offer at the outset, before accepting the current ₦100 billion deal.
At the current exchange rate of ₦840 to $1 (as of July 3, 2025), the amount translates to approximately $119 million, well above the $62 million cited in the court filing.
AMCON described the sale as a significant step in fulfilling its statutory duty of recovering outstanding debts and disposing of non-performing assets, suggesting the deal could serve as a model for future DisCo privatisations and wider public-private partnerships in the power sector.
Meanwhile, AMCON Executive Director Gbenga Alade has taken aim at debtors of the corporation, stating they have undermined Nigeria’s economy by borrowing without the intention of repayment.
Speaking during a media interaction in Lagos on Thursday, Alade remarked, “We were forewarned about the tactics of these debtors before assuming office.
“But this assignment is a call to national service, and we will carry it out with integrity and resolve.”
He said dealing with high-profile defaulters, particularly those occupying senior government positions, remains one of the toughest aspects of his career.
“Managing AMCON’s stubborn obligors is difficult enough, but having to engage with those in influential government positions makes it even more challenging,” he said.
Alade assured that AMCON would pursue its recovery mandate lawfully and transparently, despite efforts by debtors to influence public opinion.
“Please, whatever narrative these obligors push to your newsrooms, treat it with scepticism,” he told journalists.
“We shall continue to act in line with the law, guided by our commitment to national interest.”
He noted that with the reconstitution of AMCON’s Board, the previous moratorium on asset sales has now been lifted. Since then, the corporation has sold several high-value assets running into billions of naira.
On progress made by AMCON-managed entities, Alade said Arik Air (in receivership) is returning to profitability, while Aero Contractors is also showing strong performance.
He described Aero as the only Nigerian airline with a functioning Maintenance, Repair and Overhaul (MRO) facility, attributing this to sound management.
Alade added that the handover process for IBEDC is near completion, noting that AMCON had worked to secure maximum value from prospective bidders, despite attempts to derail the process.
To bolster recovery efforts, AMCON has engaged foreign asset-tracing firms to uncover hidden assets belonging to debtors abroad.
He said the recovery drive is receiving strong support from President Bola Ahmed Tinubu, the Central Bank of Nigeria, the Federal Ministry of Finance, the Attorney General of the Federation, the judiciary, the Economic and Financial Crimes Commission (EFCC), the Police, the Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the National Assembly, among others.
AMCON was established to absorb toxic assets from Nigerian banks, inject liquidity into the financial system, and safeguard depositors’ funds.
The agency acquires Non-Performing Loans (NPLs), manages them as Eligible Bank Assets (EBAs), and disposes of them strategically in accordance with insolvency and restructuring principles.