AMCON

Akin Kuponiyi 

A civil society group, African Initiative Against Abuse of Public Trust, has dragged AMCON before a Federal High Court over the proposed sale of a 60% equity stake in IBEDC for $62 million—an amount the group describes as a gross undervaluation of the asset.

Joined as co-defendants are the Bureau of Public Enterprises (BPE), the Nigerian Electricity Regulatory Commission (NERC), and the Ibadan Electricity Distribution Company (IBEDC).

The plaintiff is seeking the order of the court to halt what the group calls an “illegal, secretive, and undervalued” transaction, alleging it would result in a $107 million loss compared to the $169 million paid for the same stake during IBEDC’s privatisation in 2013.

Barrister  Chibuzor C. Ezike, leading seven other lawyers on behalf of the group, is asking the court to declare that AMCON, as a public agency holding the 60% stake in trust for Nigerians, cannot sell or assign the shares for less than the original acquisition cost.

The plaintiff contends that the sale price—reportedly pegged at N100 billion (about $62 million)—represents a $107 million loss and contravenes public interest order.

Among the declarations and orders sought, the plaintiff is asking the court to: “Declare that AMCON holds the 60% equity stake in IBEDC in trust for the Nigerian public and is bound to act in their best interest.

“Declare that the 2013 valuation of $169 million for the 60% stake remains the minimum permissible price for any future sale, transfer, or disposal.

Nullify any transaction involving the sale of the shares at a value below $169 million, citing it as illegal and an abuse of office.

“Restrain BPE and NERC from approving or consenting to any sale of the shares below the stated valuation, or set aside any concluded or attempted transaction conducted in violation of these principles.

Award legal costs as deemed appropriate by the court”.

The plaintiff recounted the privatisation history of IBEDC, stating that in 2013, the 60% equity stake was sold to Integrated Energy Distribution and Marketing Company Limited for $169 million, based on a valuation conducted by the National Council on Privatisation and BPE.

Following a default on loan obligations by the investor, AMCON assumed control of the shares via a receivership process, having acquired the loan from Polaris Bank (formerly Skye Bank) as an eligible bank asset.

The plaintiff alleges that AMCON now plans to quietly sell the shares to “preferred investors” at N100 billion ($62 million), without a public bid.