The Asset Management Corporation of Nigeria (AMCON) has announced the sale of the Ibadan Electricity Distribution Company (IBEDC) for N100 billion.
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.
AMCON’s Managing Director/CEO, Mr. Gbenga Alake, announced the deal during a media briefing on Thursday, revealing that the renegotiated sale price was nearly double the initial offer, 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,” Persecondnews quotes Alake as saying.
This transaction, however, faces legal challenges. A civil society organization has filed a lawsuit, alleging the sale was “illicit and secretive” and that the asset was undervalued.
Despite the ongoing court case, Alake insists AMCON acted in the country’s best interest and is ready to address any legal issues.
“We have sold it, and whatever is still happening in court, we will face it,” he affirmed.
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.
In April 2024, the federal government had announced plans to privatize these assets to improve efficiency and attract new investment.
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