The Asset Management Corporation of Nigeria (AMCON) has confirmed the sale of its 60% stake in the Ibadan Electricity Distribution Company (IBEDC), as part of renewed efforts to offload distressed assets and accelerate the recovery of toxic loans across Nigeria’s financial system.
At a press briefing in Lagos on Thursday, AMCON Managing Director/CEO Gbenga Alade officially announced the sale, revealing that the transaction followed a revised bidding process after AMCON rejected an earlier offer for being undervalued.
“I announce to you that Ibadan Disco has been sold,” Alade declared. “When we came in, it had already been sold. We got in and said no, it cannot be. We told them to submit a new offer we were not going to sell it for that. At the end of the day, we got almost double the amount initially proposed.”
While reports have speculated a ₦100 billion valuation for the deal, others allege that the Disco was sold for just $62 million, sparking controversy over the transaction’s transparency and fairness. AMCON has not disclosed the final amount.
Alade clarified that AMCON sold only its 60% shareholding, while the Bureau of Public Enterprises (BPE) retains the remaining 40%. He added that the Disco would be handed over to the preferred bidder soon, despite ongoing legal disputes.
“We have sold it… and whatever is still happening in court, we will face it,” he said.
Controversy Trails Transaction
The sale has drawn backlash from watchdog groups and civil society organisations. In May, the African Initiative Against Abuse of Public Trust filed a suit at the Federal High Court in Abuja against AMCON, IBEDC, the Nigerian Electricity Regulatory Commission, and the BPE, alleging that the deal was “secretive and illegal.”
The group claims the 60% stake was undervalued at $62 million, referencing the company’s earlier valuation of $169 million in 2013.
Alade, however, dismissed the allegations, describing them as distractions engineered by obligors resisting repayment.
“These obligors damaged the Nigerian economy because they never intended to repay the loans they borrowed,” he said. “We are not deterred by these antics. Our appointment is a call to serve the motherland, and we will deliver that with all humility and sincerity of purpose.”
High-Profile Debtors, Foreign Asset Recovery
Alade described AMCON’s debt recovery mission as one of the most demanding challenges of his career, stating that many of the most stubborn debtors hold powerful government positions.
“Dealing with such debtors is one of the most challenging tasks I have ever faced,” he said, vowing to continue AMCON’s mandate guided by “the fear of God, love of country, and the rule of law.”
As part of its intensified recovery efforts, Alade revealed that AMCON has engaged foreign asset tracers to locate properties and funds hidden abroad by recalcitrant debtors.
“We have commissioned foreign asset tracers who will help us track where some of these obligors have hidden assets across the globe,” he disclosed.
More Divestments Underway
With the moratorium on asset sales now lifted, AMCON has resumed selling high-value assets across key sectors. According to Alade, several “high-profile assets” worth billions of naira have already been divested.
Among AMCON’s notable recovery stories, Arik Air (in Receivership) is reportedly returning to profitability, while Aero Contractors now operates Nigeria’s only Maintenance, Repair, and Overhaul (MRO) facility a feat Alade credited to “effective and prudent management.”
Government Backing for AMCON’s Mandate
Alade emphasized that AMCON’s recovery campaign enjoys full institutional backing from President Bola Tinubu, the Central Bank of Nigeria, the Federal Ministry of Finance, the Attorney General of the Federation, the Judiciary, EFCC, ICPC, the Nigeria Police, and the National Assembly.
“With this level of support, we are confident that AMCON will fulfill its mandate of cleaning up the financial system and holding defaulters accountable,” he affirmed.
