AMCON Sells Ibadan Electricity Distribution Company for N100 Billion

Ibadan,Oyo State— The Asset Management Corporation of Nigeria (AMCON) has confirmed the sale of the Ibadan Electricity Distribution Company (IBEDC) for N100 billion. The announcement was made by AMCON’s Managing Director/CEO, Gbenga Alake, during a media briefing on Thursday.

Alake revealed that the sale price was nearly double the initial offer, following a renegotiation process aimed at securing better value for the federal government. “When we came in, it had already been sold. We said they should go and submit a new offer because we were not going to sell for that price. At the end of the day, we got almost double of what Ibadan DisCo was initially going to be sold for,” he stated.

The transaction, however, is not without controversy. Legal challenges have emerged, with a civil society organization filing a lawsuit alleging the sale was “illicit and secretive,” and that the asset was undervalued. Despite the ongoing court case, Alake maintained that AMCON acted in the country’s best interest and is prepared to address any legal issues that arise. “We have sold it, and whatever is still happening in court, we will face it,” he affirmed.

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IBEDC is one of several power distribution companies previously managed by AMCON and banks due to financial difficulties. Other companies under similar management include the Abuja, Benin, Kaduna, and Kano Electricity Distribution Companies. The federal government had announced plans in April 2024 to privatize these assets to improve efficiency and attract new investment.

The preferred bidder for IBEDC is expected to take over operations soon, marking a significant step in the ongoing reforms within Nigeria’s power sector.