A civil society group, African Initiative Against Abuse of Public Trust, has filed a suit at the Federal High Court, Abuja, against the Asset Management Corporation of Nigeria (AMCON) over the proposed sale of a 60 per cent equity stake in Ibadan Electricity Distribution Company (IBEDC) for $62 million.

The claimant claimed that the amount is “a gross undervaluation of the asset.”

Other respondents in the suit are the Bureau of Public Enterprises (BPE), the Nigerian Electricity Regulatory Commission (NERC), and the Ibadan Electricity Distribution Company (IBEDC).

The suit, marked FHC/ABJ/CS/866/2025, seeks to halt what the group calls an “illegal, secretive, and corruptly undervalued” transaction.

The civil society group alleged that it would result in a $107 million loss compared to the $169 million paid for the same stake during IBEDC’s privatisation in 2013.

The claimant, represented by a team of lawyers, led by Chibuzor C. Ezike, is asking the court to declare that AMCON, as a public agency holding the 60 per cent stake in trust for Nigerians, cannot sell or assign the shares for less than the original acquisition cost.

The claimant argued that the sale price, reportedly pegged at N100 billion (about $62 million), represents a $107 million loss and contravenes public interest.

Among the declarations and orders sought, the plaintiff is asking the court to declare that AMCON holds the 60 per cent equity stake in IBEDC in trust for the Nigerian public and is bound to act in their best interest.

“Declare that the 2013 valuation of $169 million for the 60 per cent stake remains the minimum permissible price for any future sale, transfer, or disposal.

“Nullify any transaction involving the sale of the shares at a value below $169 million, declaring it illegal, corrupt and an abuse of office.

“Restrain BPE and NERC from approving or consenting to any sale of the shares below the stated valuation.

“Set aside any concluded or attempted transaction conducted in violation of these principles.

“Award legal costs as deemed appropriate by the court,” the claimant stated.

The claimant also filed a statement of claim, a verifying affidavit, and documentary exhibits, including privatisation documents, media reports, and public notices, in support of its case.

It recounted the privatisation history of IBEDC, stating that in 2013, the 60 per cent equity stake was sold to Integrated Energy Distribution and Marketing Company Limited for $169 million, based on a valuation conducted by the National Council on Privatisation and BPE.

Following a default on loan obligations by the investor, AMCON assumed control of the shares via a receivership process, having acquired the loan from Polaris Bank (formerly Skye Bank) as an eligible bank asset.

The claimant, therefore, alleged that AMCON now plans to quietly sell the shares to “preferred investors” at N100 billion ($62 million), without a public bid or transparency, in a manner that undermines accountability and potentially facilitates corrupt enrichment.

The court is yet to fix a date for the hearing.