United Bank for Africa Plc. (UBA) has rejected the reported sale of the 60% stake in the Ibadan Electricity Distribution Company (IBEDC) for N100 billion by the Asset Management Corporation of Nigeria (AMCON), describing the transaction as unlawful, opaque, and carried out without its consent or due process.
Speaking during a media session in Lagos on Thursday, AMCON’s Managing Director/CEO, Gbenga Alade, confirmed the sale and criticised bank debtors for sabotaging the economy.
However, UBA, through one of its recovery officers, contended that the transaction is sub judice, as the matter is currently before Justice Akintayo Aluko of the Federal High Court, Lagos.
UBA is the plaintiff in the ongoing suit, with AMCON, Polaris Bank, and Archlight Nigeria Limited, the entity to which it was purportedly sold, as the first, second, and third defendants respectively.
The bank disclosed that all parties were represented in court on July 3, 2025.
During the session, counsel for the 2nd and 3rd defendants acknowledged pending motions seeking to vary an earlier court order obtained by the plaintiff.
Both Dr. Chika Agbu SAN and Babatunde Ogala SAN informed the court they were unprepared to proceed, citing late service and incomplete filings.
The matter was adjourned to October 2, 2025, for hearing of all pending applications.
UBA questioned why AMCON’s principal continued to brag with the purported sale the subject matter was under judicial consideration. The Bank’s position is that that the press conference granted by AMCON principal was contemptuous and would take legal steps in that regard.
The bank insists the purported divestment violates the terms of the Facility Agreement and is liable to be set aside by the court.
In its application, UBA is seeking interlocutory injunctions to restrain AMCON, Polaris Bank, Archlight Nigeria Ltd, and their agents from disbursing funds or taking any steps regarding the divestment of Integrated Energy Distribution and Marketing Limited’s (IEDM) 60% shareholding in IBEDC, pending the determination of the substantive suit.
According to an affidavit deposed by UBA’s representative, Afamefuna Ogbonna, IEDM had secured a $162.4 million syndicated loan from several banks, with UBA contributing $35 million (21.5% of the total), to acquire the 60% stake in IBEDC following the 2013 PHCN privatization. Polaris Bank (then Skye Bank) was appointed Facility Agent.
Following IEDM’s default, AMCON purportedly assumed control of IEDM’s interest in IBEDC and appointed a Receiver/Manager in August 2021. UBA alleges that AMCON unilaterally took over the role of Facility Agent and proceeded with a divestment plan without consulting or obtaining consent from the lenders.
UBA’s investigations revealed that AMCON initiated a bid process in 2022 and later selected Archlight Nigeria Limited as the preferred bidder—despite the latter’s failure to submit a bank guarantee. UBA claims the transaction lacks transparency, noting that no valuation report or share purchase agreement was shared with it or other lenders.
In a pre-action notice dated April 28, 2025, UBA expressed its concerns to AMCON, which were discountenanced in a response dated May 16, 2025.
UBA maintains that AMCON’s decision to sell the IBEDC stake for N100 billion, an amount allegedly below 20% of its true value of over N1 trillion is arbitrary and grossly prejudicial.
UBA emphasised that it is a custodian of depositors’ and shareholders’ funds, and that the N70 billion exposure due to IEDM’s default, continues to accrue interest, worsening its financial position.
The bank is urging the court to set aside the sale, asserting that the process breached contractual obligations, violated transparency standards, and failed to secure the collective approval of the lenders.
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