Tensions escalated in Nigeria’s power sector on Wednesday following reports that KEPCO Energy Resources Nigeria Ltd, the majority shareholder in Egbin Power Plc, had been placed under receivership by FBNQuest Trustees Limited over alleged unpaid debts.
In a public notice, legal practitioner and Senior Advocate of Nigeria, Kunle Ogunba, announced his appointment as Receiver/Manager for KEPCO’s assets—including its 70% stake in Egbin Power, the country’s largest thermal power plant—based on a 2013 security deed filed with the Corporate Affairs Commission (CAC). The notice directed banks, regulators, and related institutions to freeze dealings with KEPCO’s assets, pending further court directives.
However, Sahara Group, KEPCO’s parent company, swiftly dismissed the takeover claim. In a strongly worded statement, it described the notice as misleading and contrary to existing court orders. It also affirmed that Egbin Power Plc, Ikeja Electric Plc, and First Independent Power Limited remain operational, financially stable, and fully under their legitimate management.
Babatunde Osadare, Chief Legal and Regulatory Officer of Ikeja Electric, speaking on behalf of the companies, said recent court rulings had explicitly barred the enforcement of any receivership action on the disputed loans. He accused FBNQuest and its legal representatives of attempting to subvert judicial authority and destabilise operations through “malicious self-help tactics.”
“The court rulings of August 5, 2025, in Suit Nos. FHC/L/CS/1242, FHC/L/CS/1244, and FHC/L/CS/1245, restrained the lenders and the purported Receiver/Manager from interfering with the companies’ assets, businesses, or accounts,” Osadare said. “We urge the public and stakeholders to disregard the false claims, as the matter is under active litigation.”
Industry stakeholders have reacted with concern, warning that such disputes further expose the fragility of Nigeria’s power sector. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, described the situation as emblematic of deeper systemic issues, including flawed privatisation, poor regulatory frameworks, and unsustainable tariffs.
“This situation is a troubling conundrum. The power sector is reeling under a liquidity crisis. Distribution and generation companies are heavily leveraged, and the interest rate environment makes recovery nearly impossible,” Yusuf said.
He warned that if a company like Ikeja Electric—often regarded as the country’s best-performing distribution company—were to fall under receivership, it could signal a looming sector-wide crisis. Already, five other DisCos—Abuja, Benin, Kaduna, Kano, and Ibadan—have been placed under receivership in recent years.
Yusuf stressed the urgent need for federal government intervention to prevent a total collapse of the power ecosystem. “Receivership may help banks recover loans, but it disregards the critical economic, social, and productivity functions of the power sector. Without decisive action, citizens, industries, and investors will bear the brunt of the fallout,” he cautioned.
As legal battles continue, the future of Egbin Power and other key power firms hangs in the balance, raising alarm over the stability and sustainability of Nigeria’s already struggling electricity sector.
