UBA challenges AMCON’s sale of IBEDC

United Bank for Africa Plc (UBA) has rejected the reported sale of the 60 per cent stake in the Ibadan Electricity Distribution Firm (IBEDC) for N100 billion by the Asset Management Company of Nigeria (AMCON), describing the transaction as unlawful, opaque, and implemented without its consent or due assignment.

Speaking in the course of a media session in Lagos, AMCON’s Managing Director/CEO, Gbenga Alade, confirmed the sale and criticised financial institution debtors for sabotaging the economy.

However, UBA, through one of its restoration officers, contended that the transaction is subjudice, because the topic is at the 2d sooner than Justice Akintayo Aluko of the Federal High Courtroom, Lagos.

UBA is the plaintiff in the ongoing trot well with, with AMCON, Polaris Bank, and Archlight Nigeria Puny, the entity to which it turned into once purportedly sold, because the principle, 2d, and third defendants respectively.

The financial institution disclosed that all parties were represented in court docket on July 3, 2025.

For the length of the session, counsel for the 2nd and third defendants acknowledged pending motions looking out for to change an earlier court docket explain got by the plaintiff.

Every Dr. Chika Agbu (SAN) and Babatunde Ogala (SAN) urged the court docket they were unprepared to proceed, citing late provider and incomplete filings.

The topic turned into once adjourned to October 2, 2025, for hearing of all pending functions.

UBA wondered AMCON’s purported sale when the subject subject cloth turned into once under judicial consideration.

The financial institution argued that the clicking convention granted by AMCON’s boss turned into once contemptuous and would rob factual steps in that regard.

The financial institution insists the purported divestment violates the phrases of the Facility Settlement and is at threat of be articulate apart by the court docket.

In its utility, UBA is looking out for interlocutory injunctions to restrain AMCON, Polaris Bank, Archlight Nigeria Ltd, and their brokers from disbursing funds or taking any steps referring to the divestment of Integrated Energy Distribution and Marketing Puny’s (IEDM) 60 per cent shareholding in IBEDC, pending the decision of the substantive trot well with.

In conserving with an affidavit deposed by UBA’s advertising consultant, Afamefuna Ogbonna, IEDM had secured a $162.4 million syndicated loan from several banks, with UBA contributing $35 million (21.5 per cent of the final), to invent the 60 per cent stake in IBEDC following the 2013 PHCN privatisation.

Polaris Bank (then Skye Bank) turned into once appointed Facility Agent.

Following IEDM’s default, AMCON purportedly assumed retain watch over of IEDM’s ardour in IBEDC and appointed a Receiver/Supervisor in August 2021.

UBA alleges that AMCON unilaterally took over the position of Facility Agent and proceeded with a divestment belief without consulting or acquiring consent from the lenders.

UBA’s investigations revealed that AMCON initiated a explain assignment in 2022 and later selected Archlight Nigeria Puny as essentially the most in type bidder—despite the latter’s failure to post a financial institution guarantee.

UBA claims the transaction lacks transparency, noting that no valuation narrative or portion rob settlement turned into once shared with it or diverse lenders.

In a pre-action demand dated April 28, 2025, UBA expressed its concerns to AMCON, which were discountenanced in a response dated Would possibly 16, 2025.

UBA maintained that AMCON’s decision to promote the IBEDC stake for N100 billion, an amount allegedly under 20 per cent of its generous fee of over N1 trillion is bigoted and grossly prejudicial.

UBA emphasised that it is a custodian of depositors’ and shareholders’ funds, and that the N70 billion publicity attributable to IEDM’s default, continues to accrue ardour, worsening its financial articulate.

The financial institution is urging the court docket to articulate apart the sale, declaring that the strategy breached contractual tasks, violated transparency standards, and didn't get the collective approval of the lenders.