….As CPPE Raises Concerns
Uche Cecil Izuora
Egbin Power Plc, Ikeja Electric Plc (IE) and First Independent Power Limited (FIPL), have refuted report alleging the appointment of “Kunle Ogunba Esq. SAN” as Receiver/Manager over the entities.
According to the firms, the report was false media reports sourced from misleading advertorials published in This Day Newspapers on August 6, 2025.
The Management of the power companies said the publications, contrary to a subsisting court ruling, erroneously claimed the appointment of a Receiver/Manager over KEPCO Energy Resource Nigeria Limited, NG Power-HPS Limited, and New Electricity Distribution Company, with operating companies as follows: KEPCO (Egbin Power), NG Power-HPS Limited (FIPL) and New Electricity Distribution Company (Ikeja Electric).
“We state unequivocally and for the record that Egbin Power Plc, First Independent Power Limited, and Ikeja Electric Plc are absolutely not in Receivership, and their assets, businesses, or undertakings are not under the management of any external Receiver/Manager whatsoever,” Babatunde Osadare, Chief Legal and Regulatory Officer, Ikeja Electric, said on behalf of the power companies’ Management.
Osadare said the claims were not only false, but “represent a gross misrepresentation of facts and a malicious attempt at self-help designed to subvert the course of justice.”
According to him, in definitive rulings delivered on August 5, 2025 (Suit Nos. FHC/L/CS/1242, FHC/L/CS/1244, FHC/L/CS/1245), the Honorable Justice Akintayo Aluko of the Federal High Court in Lagos explicitly restrained the Lenders and their purported Receiver/Manager from taking any adverse actions.
Osadare said the rulings specifically prohibits the purported Receiver/Manager from: accelerating the disputed loan facility before its maturity; interfering in any manner with the assets, businesses, or undertakings of the Power Entities, including operational accounts; enforcing any share security over the assets of the Power Entities or their sponsors, based on the disputed debt; or unilaterally enforcing any finance documents related to the disputed debt.
“We therefore urge the general public, our valued customers, financial partners, regulators, and all stakeholders to completely disregard the falsehoods presented in the aforementioned This Day advertorials and any related, unfolding misleading press releases. The core matters referenced are actively being litigated and the Lenders, represented by the purported Receiver/Manager, have formally submitted to the Court’s jurisdiction,” Osadare said.
Reassuring all stakeholders, Osadare said the power companies emphatically reaffirm their steadfast commitment to the development of the nation’s Power Sector and their vital role of responsibly powering homes, communities, and businesses across the nation.
He added; “Egbin Power, First Independent Power, and Ikeja Electric remain fully operational, financially stable, and firmly under the control of their legitimate management. Our focus remains unwavering on our core mission: providing reliable electricity and driving the growth of Nigeria’s critical power sector. We have full confidence in the Nigerian judicial system to fairly resolve the underlying disputes.”
However, the Centre for the Promotion of Private Enterprise (CPPE), has raised concern over the potential impact of the issue in the power sector.
According to the Chief Executive of the Centre, Dr. Muda Yusuf, The report of the Ikeja Electric receivership highlights the persistent challenges ofthe power sector, which has become a troubling conundrum.
These challenges stem from flawed privatization processes, ageing equipment, limited technical and financial capacity of the power distribution firms, problematic pricing and tariff structures, coupled with affordability concerns among the citizenry and an unsustainable subsidy regime. The result has been an acute liquidity crisis in the sector.
“There are additionally clear conflicts between the commercial objectives of private investors (DisCos and GenCos), the citizens’ desire for affordable electricity, the quest by industrialists for an investment-friendly electricity tariff, and a politically acceptable tariff regime.
“The government’s obstruction and the citizens’ opposition to cost-reflective tariffs, despite demands from private investors in the sector, further complicates the situation.
“This created numerous contradictions and conflicts that require careful and painstaking strategic resolution. What has happened to the DISCOs is also partly a consequence of the prohibitive interest rate in the economy, given the high degree of leveraging of most of the DISCOs.” notes Yusuf.
He said it is very difficult for any long-term project to survive the current excruciating lending rate in the economy.
Meanwhile, it is quite curious and perturbing that Ikeja Electric, often touted as the best-performing electricity distribution company in the country with a prosperous customer base, has ended up in receivership.
“This development suggests a similar fate could await other distribution companies in the near term. Indeed, five others were already in receivership before this new development. They include Abuja, Benin, Kaduna, Kano, and Ibadan Discos.
“Given the power sector’s strategic importance, government’s urgent intervention is imperative to prevent a complete collapse of the national power ecosystem. The power sector is not just a business; it is crucial for economic development, economic sustainability and economic security.
While a sustainable framework for power sector liquidity and subsidies is beingdeveloped, the government must take immediate steps to stabilize the sector. “ he said.
Meanwhile, the worry now is that in a receivership, banks primarily seek to recover their funds, typically disregarding economic development, social, environmental or productivity objectives, said Yusuf, adding, “The overriding objective would be debt recovery, even if it means liquidating the assets. The ultimate victims of a power sector collapse are citizens, industries and investors. “