Ibadan DisCo Sold for ₦100 Billion: AMCON Secures Bigger Deal Despite Court Disputes
The Asset Management Corporation of Nigeria (AMCON) has officially sold the Ibadan Electricity Distribution Company (IBEDC) for a staggering ₦100 billion, nearly doubling the initial sale value. This marks a significant shift in Nigeria’s ongoing power sector reforms.
Speaking during a media briefing on Thursday, AMCON’s Managing Director and CEO, Gbenga Alake, confirmed the sale, stating:
“Today, I announce to you that Ibadan DisCo has been sold.”
According to Alake, AMCON’s intervention ensured that the federal government got better value from the transaction.
From Undervalued Deal to a ₦100 Billion Turnaround
Initially, IBEDC had been slated for sale at a lower price prior to AMCON’s latest involvement. Alake revealed that his team rejected the original offer, demanding a revised bid.
“When we came in, it had already been sold… but we said no, it cannot be. We were not going to sell for that,” he explained.
Ibadan Electricity Distribution Company
photo credit IBEDC
As a result of negotiations, AMCON successfully secured almost double the previous sale value, landing on the final ₦100 billion agreement.
Legal Storms Brewing
Despite closing the sale, the deal has triggered legal disputes from various stakeholders. Alake acknowledged that the transaction is currently being challenged in court, but emphasized AMCON’s commitment to national interest:
“We have sold it and whatever is still happening in court, we will face it… There are so many interests now fighting and writing.”
What This Means for Nigeria’s Power Sector
IBEDC is one of five electricity distribution companies the federal government had listed for divestment in April 2024. The others include:
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Abuja DisCo
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Benin DisCo
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Kaduna DisCo
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Kano DisCo
These DisCos were previously under the joint management of commercial banks and AMCON, as part of the government’s restructuring efforts in the post-privatization power sector.
This ₦100 billion sale may set a new benchmark for how future power assets are valued and negotiated.
Industry Experts React
Power sector analysts have praised the deal for its enhanced financial return but remain cautious about the ongoing litigation. Many believe that clarity on ownership and operational structure is crucial to ensuring improved service delivery and investment confidence.
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