Court Cautions Parties As UBA Challenges AMCON’s N100bn IBEDC Stake Sale

Justice Dehinde Dipeolu of the Federal High Court in Lagos has issued a stern warning to all parties involved in a legal dispute over the sale of a majority stake in the Ibadan Electricity Distribution Company (IBEDC), urging them to uphold the integrity and dignity of the judiciary.

The directive came during proceedings in a suit filed by United Bank for Africa (UBA) Plc, which is contesting the sale of a 60% stake in IBEDC by the Asset Management Corporation of Nigeria (AMCON) for N100 billion. UBA is asking the court to nullify the transaction, alleging that it was conducted without its consent, in violation of due process, and significantly undervalued the asset.

UBA, a key lender to Integrated Energy Distribution and Marketing Limited (IEDM)—the original stakeholder in IBEDC—has described the sale as unlawful and in contempt of existing court proceedings before Justice Akintayo Aluko of the same court division. The bank also criticized AMCON’s public confirmation of the deal, calling it a direct affront to the judiciary. It has indicated plans to initiate contempt proceedings against the corporation.

During Wednesday’s sitting, UBA’s counsel, Mr. Gbenga Akinde-Peters, told the court that AMCON, in a letter dated July 14, had expressed its intention to disburse the proceeds from the controversial sale, despite a pending suit and an application seeking to halt such actions. He further accused AMCON of making public comments that show blatant disregard for the judicial process.

While AMCON was not represented in court, Mr. Babatunde Ogala, SAN, counsel for Archlight Nigeria Limited—the firm that allegedly bought the IBEDC stake—informed the court that AMCON’s lawyer, Dr. Francis Agbu, SAN, had sought an adjournment due to a personal bereavement. Ogala urged the court to maintain the previously agreed hearing date of October 2, 2025.

However, Akinde-Peters objected to the delay, citing the urgency of the matter and warning that any disbursement of sale proceeds could inflict irreversible damage on UBA.

In her ruling, Justice Dipeolu adjourned the matter to August 18, 2025, for mention and insisted that AMCON must appear at the next session. She also directed all parties to refrain from any actions that could be perceived as undermining the authority or integrity of the court.