Confusion has erupted over the reported takeover of Ikeja Electric, Egbin Power (KEPCO Energy Resources), and First Independent Power Limited (FIPL) by Nigerian banks and other parties following an alleged court-ordered receivership due to unpaid debts.
Reports indicate that a Lagos High Court, presided over by Justice Akintayo Aluko, issued a ruling on August 5, 2025, in connection with debt agreements dating back to 2013. The suits referenced in the judgment include FHC/L/CS/1242, FHC/L/CS/1244, and FHC/L/CS/1245, leading to claims that the companies had been placed under receivership.
However, in a swift response, Babatunde Osadare, Chief Legal and Regulatory Officer of Ikeja Electric, denied the receivership claims, describing them as misleading and inaccurate.
“We state unequivocally and for the record that Egbin Power Plc, First Independent Power Limited, and Ikeja Electric Plc are not in receivership, and their assets, businesses, or undertakings are not under the management of any external receiver/manager whatsoever,” Osadare said.
According to him, the court ruling rather restrained lenders and their appointed receiver/manager from taking any adverse actions against the companies.
Despite the clarification, the conflicting reports have deepened concerns in Nigeria’s already fragile power sector. The incident adds to the growing crisis in the industry following the 2013 privatisation exercise, which has left several distribution companies struggling to stay afloat.
Outside of Ikeja Electric, five other electricity distribution companies—Abuja, Benin, Kaduna, Kano, and Ibadan—are currently under receivership.
Reacting to the latest development, the Centre for the Promotion of Private Enterprise (CPPE) called for urgent government intervention to prevent the collapse of the national power sector.
In a statement issued on Wednesday, the organisation’s Chief Executive Officer, Muda Yusuf, said the controversy surrounding Ikeja Electric highlights systemic issues plaguing the power sector, which he described as a “troubling conundrum.”
He blamed the ongoing crisis on the flawed 2013 privatisation process, coupled with the technical and financial inadequacies of distribution companies, as well as problematic tariff and pricing structures.
“The ultimate victims of a power sector collapse are the citizens, industries, and investors,” Yusuf warned.
Emphasising the sector’s strategic significance, CPPE urged the federal government to take immediate action.
“The power sector is not just a business; it is crucial for economic development, economic sustainability, and economic security,” the statement added.
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