FBN Holdings’ Attempted Takeover Of Egbin Power, Ikeja Electric, And FIPL Sparks Controversy.
FBN Holdings, through its subsidiary FBNQuest Trustees Limited, has moved to take control of three major Nigerian power companies—Egbin Power Plc, Ikeja Electric Plc, and First Independent Power Limited (FIPL)—following a Federal High Court order appointing Kunle Ogunba & Associates as Receiver/Manager. The action, aimed at recovering debts tied to loans from a consortium of banks, has ignited a fierce dispute with Sahara Energy Group, the parent company of the power firms, which vehemently denies the receivership claims.
The banks, including Zenith, UBA, FCMB, Access, Fidelity, Ecobank, Keystone, FirstBank, Sterling, and Union, sought to enforce a security deed dated 21 August 2013, targeting KEPCO Energy Resources Limited, which holds a 70% stake in Egbin Power, alongside NG Power-HPS Limited and New Electricity Distribution Company, linked to FIPL and Ikeja Electric respectively. The court’s decision, publicised in ThisDay Newspapers on 6 August 2025, has raised concerns about the stability of Nigeria’s power sector, with six of the country’s 11 electricity distribution companies now under receivership.
However, Sahara Energy, through Ikeja Electric’s Chief Legal and Regulatory Officer Babatunde Osadare, has dismissed the takeover claims as “false and misleading.” Osadare stated that Egbin Power, Ikeja Electric, and FIPL remain fully operational and under their legitimate management, citing court rulings on 5 August 2025 that restrained FBNQuest and the appointed receiver from taking adverse actions against the companies. The power firms condemned the advertorials as a “malicious attempt to subvert justice,” asserting their financial stability and commitment to providing reliable electricity.
The controversy has drawn attention to broader challenges in Nigeria’s power sector, with Egbin Power, the nation’s largest thermal plant, contributing about 20% of the country’s electricity, and Ikeja Electric generating significant revenue, reportedly N37 billion in May 2025 alone. Stakeholders, including legal experts, have warned that such disputes could deter investors and disrupt the sector’s fragile progress, especially as the companies face mounting debts, including over N4 trillion owed to generation companies by the federal government.
As the legal battle unfolds, the power firms have expressed confidence in Nigeria’s judicial system to resolve the dispute fairly, while urging collaboration with lenders to balance debt servicing with sector stability, in line with President Bola Tinubu’s call for unity. The outcome of this high-stakes clash will likely have significant implications for Nigeria’s electricity supply and the legacy of the 2013 power sector privatisation.
