Power Tussle Deepens as FBN Holdings Moves to Take Over Ikeja Electric, Egbin, FIPL amid Legal Clash
- The row between FBNQuest Trustees Limited and three power firms got more intense as a Federal High Court appointed receivers for the firms
- The move involved KEPCO Energy Resources Limited, which controls 70% of Nigeria’s largest power generation company
- However, the three power companies have denied that they are in receivership, labelling the report as false
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigeria’s troubled power sector faces fresh uncertainty as FBN Holdings, via its subsidiary FBNQuest Trustees Limited, initiates steps to take control of three critical electricity firms: Egbin Power Plc, Ikeja Electric Plc, and First Independent Power Limited (FIPL).
The move, sanctioned by a Federal High Court, involved the appointment of Kunle Ogunba & Associates as Receiver/Manager for KEPCO Energy Resources Limited, a special purpose vehicle linked to Sahara Energy Resources Group, the owners of the power firms.
Source: UGC
Court freezes assets, appoints receiver/manager
KEPCO controls 70% of Egbin Power, Nigeria’s largest power generation company.
With this move, six of Nigeria’s 11 electricity distribution companies are now under receivership, raising red flags about the effectiveness of the 2013 power sector privatisation.
Justice Akintayo Aluko of the Federal High Court in Lagos ordered the freezing of assets and accounts of the companies under receivership.
The decision effectively transfers control of the affected companies to the court-appointed Receiver, stripping the original management of operational authority.
The takeover aims to recover debts linked to loans provided by lenders, but has ignited a fierce legal and public battle between FBN Holdings and the Sahara Group.
Power firms deny receivership
In a swift rebuttal, Ikeja Electric, speaking on behalf of the three affected companies, denied that any such takeover had occurred.
Babatunde Osadare, Chief Legal and Regulatory Officer, said:
“We state unequivocally that Egbin Power, First Independent Power, and Ikeja Electric are not in receivership, and no external Receiver/Manager controls our assets or operations.”
He described the publications announcing the receivership as false, misleading, and a malicious attempt at self-help.
Court orders restraining lenders from interference
According to a Daily Sun report, Osadare cited court rulings from August 5, 2025, restraining FBNQuest Trustees and its Receiver/Manager from taking action against the companies or enforcing disputed debt instruments.
- The judgments prohibit:
- Acceleration of the loan facility
- Interference in company operations
- Enforcement of any share security or finance documents
- Control over the firms’ operational accounts
The power companies insist that the underlying legal dispute is ongoing and has been submitted to the courts for proper adjudication.
Power firms reaffirm stability and commitment
Despite the controversy, the affected power companies reassured the public, regulators, and partners of their continued stability and commitment.
“We remain fully operational, financially stable, and under legitimate management,” Osadare said.
He reaffirmed their mission to power homes, communities, and businesses, expressing confidence in the Nigerian judicial system to deliver justice.
As legal fireworks continue, the case underscores the fragile state of Nigeria’s privatised power sector and the growing tension between lenders and core investors.
Coming a few weeks after Ikeja Electric alerted its customers about a 25-day power outage due to maintenance, the controversy has resuscitated the debate about the viability of the power firms.
Source: Getty Images
NERC orders IE, others to downgrade Band A feeders
Legit.ng earlier reported that the Nigerian Electricity Regulatory Commission (NERC) has ordered eight electricity distribution firms to downgrade 18 Band A feeders to lower bands because they are unable to supply a minimum of 20 hours of power to the affected customers.
The commission also ordered the DisCos to compensate Band A customers in 213 feeders.
The order was contained in the May 2025 Supplementary Order to the Multi-Year Tariff Order (MYTO).
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
