A Federal High Court judge in Lagos, Justice Akintayo Aluko, has endorsed the appointment of Kunle Ogunba, SAN, as Receiver/Manager over Ikeja Electricity Distribution Company (IKEDC), KEPCO Energy Resources Nigeria Limited, and its 70% controlling stake in Egbin Power Plc, the nation’s largest power generation company. The ruling places the companies under receivership, highlighting the precarious state of the electricity sector.
The decision follows efforts by a consortium of 12 creditor banks—including Zenith Bank, UBA, FCMB, Union Bank, Sterling Bank, Fidelity Bank, Ecobank, Access Bank, Keystone Bank, First Bank, First Trustees, and FBNQuest Merchant Bank—to recover outstanding debts through receivership proceedings.
Ogunba’s appointment brings Ikeja Electric into the growing list of power distribution companies under receivership. Previously, five of the 11 distribution companies privatized in 2013—Abuja, Benin, Kaduna, Kano, and Ibadan DisCos—had already been taken over by banks or AMCON under similar arrangements.
The liquidity crisis affecting DisCos is beginning to spill over into generation companies. Last week, GenCos met with President Bola Tinubu over the government’s N4 trillion indebtedness to the sector.
A public notice filed with the Corporate Affairs Commission (CAC) shows that Ogunba was appointed on June 19, 2025, by FBNQuest Trustees Ltd. under a Deed of Appointment referencing a 2013 security agreement registered at the CAC on January 22, 2014.
In his ruling on suit numbers FHC/L/CS/1242/2025, FHC/L/CS/1244/2025, and FHC/L/CS/1245/2025, Justice Akintayo Aluko upheld the appointment, describing it as a “completed act.” The court refused to dismiss the suit despite objections from plaintiffs—including KEPCO Energy Resources Nigeria Limited, New Electricity Distribution Company Limited, and NG Power-HPS Limited—who sought to halt the takeover. The matter has been adjourned to October 20, 2025, for further mention, but the receiver’s appointment remains in effect.
The receivership notice directs all debtors of KEPCO and its affiliates to preserve assets pending further instructions. It also instructs creditors to submit proof of claims within 14 days from August 6, 2025. Banks, financial institutions, and regulators—including the Nigerian Bulk Electricity Trading Plc (NBET), Nigeria Electricity Supply Industry Stabilization Security Ltd. (NESISSL), Nigerian Electricity Regulatory Commission (NERC), and the Bureau of Public Enterprises (BPE)—are ordered to freeze and preserve all deposits, shares, and accounts of KEPCO and Ikeja Electric until further court directives.
