Nigeria’s power sector has been thrust into turmoil following conflicting reports regarding the receivership status of KEPCO Energy Resources Nigeria Ltd, the majority shareholder in Egbin Power Plc. The latest development has sparked industry-wide concern about the stability and future of the country’s largest thermal power plant.
According to a public notice released on Wednesday, legal practitioner and Senior Advocate of Nigeria (SAN), Kunle Ogunba, was appointed by the court as Receiver/Manager over KEPCO’s assets, including its 70% equity in Egbin Power. This appointment, made on behalf of FBNQuest Trustees Ltd, aims to recover debts reportedly owed under a 2013 security agreement.
The notice stated that the receivership followed a Security Deed signed in August 2013 and registered with the Corporate Affairs Commission (CAC) in January 2014. A Deed of Appointment of the Receiver/Manager was formally filed in June 2025. Ogunba has directed financial institutions and regulators to halt all transactions involving KEPCO’s assets until further notice.
However, KEPCO, which is a subsidiary of Sahara Group, has vehemently refuted the claims, asserting that the notice is false, misleading, and legally inaccurate. The group emphasized that Egbin Power, Ikeja Electric Plc, and First Independent Power Limited remain fully operational, financially solvent, and under the legitimate control of their existing management.
Babatunde Osadare, Chief Legal and Regulatory Officer at Ikeja Electric, responded on behalf of the Sahara entities, denouncing the takeover move as a deliberate distortion of facts and an unlawful attempt to circumvent a subsisting court ruling. According to him, a Federal High Court in Lagos, presided over by Justice Akintayo Aluko, had restrained the lenders and their appointed Receiver/Manager from taking any action against the power entities.
The court rulings in question, delivered on August 5, 2025 (Suit Nos. FHC/L/CS/1242, FHC/L/CS/1244, and FHC/L/CS/1245), explicitly prohibit the enforcement of the alleged debt, interference with operations, and execution of share security agreements until the maturity of the disputed loan.
In a strongly worded statement, Osadare urged the public and stakeholders to disregard the advertorials promoting the receivership claim. He reaffirmed Sahara Group’s commitment to powering homes, communities, and industries, while expressing confidence in the judiciary to resolve the legal impasse.
The dispute has reignited debate over the fragile state of Nigeria’s power sector. According to Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, the incident underscores the systemic issues plaguing the industry since the flawed 2013 privatisation process.
Yusuf highlighted major challenges including underinvestment, unsustainable tariff models, outdated infrastructure, and a crippling liquidity crunch. He warned that the high cost of borrowing and lack of financial viability may push more DisCos and GenCos toward insolvency.
“If Egbin Power, the largest thermal plant, becomes mired in a receivership, it could further destabilize the entire electricity value chain,” Yusuf warned. “The government must intervene swiftly to preserve national energy security and prevent a cascade of financial failures.”
He stressed that lenders, in executing receivership, often prioritize debt recovery without considering the broader economic or social consequences. With five DisCos already under receivership, the addition of a major generation company like Egbin would compound the sector’s vulnerability.
As the legal battle intensifies, stakeholders await further court guidance on the legitimacy of the receivership. Meanwhile, the Federal Government faces mounting pressure to implement reforms that address financing structures, encourage investment, and safeguard the operational continuity of critical power infrastructure.
For now, Egbin Power and its sister companies under Sahara Group assert they remain firmly in control and focused on their mandate to deliver reliable electricity to Nigerians. But unless a clear resolution is reached soon, the ongoing receivership dispute could become a flashpoint in Nigeria’s already unstable energy landscape.