… court affirms Ogunba as Receiver/Manager

… Ikeja Electric becomes Nigeria’s 6th DisCo under takeover

Oredola Adeola

Another fresh turbulence hits the power sector as the Federal High Court in Lagos has affirmed 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 generation company.

The decision, confirmed by Justice Akintayo Aluko, comes after 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, sought to enforce debts owed by the companies through receivership proceedings.

According to a public notice filed at the Corporate Affairs Commission (CAC), 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.

Justice Aluko, in his ruling on suit numbers FHC/L/CS/1242/2025, FHC/L/CS/1244/2025, and FHC/L/CS/1245/2025, upheld the validity of the appointment, describing it as a “completed act.”

The court declined to dismiss the suit despite objections from the plaintiffs —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 appointment of the receiver remains in force.

The receivership in a formal notice seen by Advisors Reports directed all debtors of KEPCO and its affiliates to preserve assets pending further directives.

It instructed all creditors to submit proof of claims within 14 days from August 6, 2025.

It also urged 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); to freeze and preserve all deposits, shares, and accounts of KEPCO and Ikeja Electric until further court orders.

With Ikeja Electric now joining, 6 out of Nigeria’s 11 DisCos are under receivership.

Already five other DisCos including Abuja, Benin, Kaduna, Kano, and Ibadan DisCos were earlier taken over by banks or AMCON under receivership arrangement.

Advisors Reports’ checks also showed that this latest development further exposed the scale of financial exposure of power sector with a ₦2 trillion sector liquidity gap.