The sale of the Ibadan Electricity Distribution Company (IBEDC), Nigeria’s largest power distribution company is poised to worsen the ongoing power crisis in the country.The distribution company has been sold for ₦100 billion, an amount contrasting with its over one trillion naira assets valuation.Similar to Delta Steel Company, this sale is another giveaway.Written all over the process is secrecy harbouring corrupt practices and shady dealings without consideration for consumers’ interests. 

The deal, overseen by the Asset Management Corporation of Nigeria (AMCON) and allegedly facilitated by some top officials of the Ministry of Power, alongside complicit staff from the Bureau of Public Enterprises (BPE) and the Nigerian Electricity Regulatory Commission (NERC), is suspect. Who sells a property for just a tenth of its value?

For a firm like IBEDC shouldering power supply to millions of households across seven states – Ogun, Oyo, Osun, Kwara, and parts of Kogi, Niger, and Ekiti, its take over by AMCON in 2022 after its former board defaulted on a massive debt was expected to expedite return to normalcy and financial stability. Rather, it has undermined public trust, leaving defaulted loans to be serviced through high tariff rates amid poor supply. 

As the second-best performing electricity distribution company, IBEDC’s worth can never be overestimated.

Its assets include 23,472 distribution transformers at ₦13 million each, 142 power transformers at ₦200 million each, 2.5 million poles at ₦130,000 each, 51 million meters of aluminum conductors at ₦2,500 per meter and landed properties as well as office buildings worth ₦80 billion across seven states. 

Altogether, totaling over N1 trillion , these figures—drawn from industry sources and asset audits—paint a picture of a company whose strategic value far exceeds the ₦100 billion AMCON accepted. 

The blame should squarely be on AMCON,for rushing the deal to favor preferred bidders. The process, shrouded in secrecy, bypassed competitive bidding norms. 

Meanwhile, the company’s new owners seemed to be riding on a goodwill as they inherited a network poised for profit—if properly managed while its over 20 million customers face uncertainty amid Nigeria’s ongoing power crisis.

The outcry is quite clear and unambiguous; a demand for the cancellation of this fraudulent and shady deal, while calling for the relaunch of a transparent process reflecting IBEDC’s true value.

Olamilekan Raji, Ibadan