The Federal High Court in Lagos has delivered a decisive ruling restraining the Asset Management Corporation of Nigeria (AMCON), Polaris Bank Limited, and Archlight Nigeria Limited from executing any action that could affect a pending lawsuit filed by the United Bank for Africa (UBA) over the controversial sale of shares in the Ibadan Electricity Distribution Company (IBEDC).
Justice Dehinde Dipeolu, in a ruling delivered on August 18, 2025, directed all parties involved to “respect the judicial process patiently” and adjourned the matter to October 2, 2025, for the hearing of the motion.
The court’s order also restrained both plaintiffs and defendants from taking any steps that could undermine the effectiveness of the pending applications, signaling the judiciary’s commitment to ensuring due process in high-stakes corporate litigation.
The restraining order follows submissions from UBA’s legal team, led by Gbenga Akinde-Peters and A. Olusola, who argued that the actions of AMCON, Polaris Bank, and Archlight could compromise the outcome of the lawsuit.
Representing the defendants were Dr. Chika Agbu (SAN) for AMCON and Babatunde Ogala (SAN) for Archlight.
In a related development, UBA has initiated contempt proceedings against AMCON, its top executives, and directors of Archlight Nigeria Limited for allegedly breaching an earlier restraining order.
The bank is seeking the committal of AMCON’s Managing Director/CEO, Mr. Gbenga Alade, alongside three executive directors—Mr. Lucky Adaghen, Mr. Adeshola Lamidi, and Dr. Aminu Dan’amu—while Archlight’s directors, including Taiwo Afolabi, Mr. Tunde Afolabi, Mr. Rotimi Oyekan, and Mr. Deolu Ijose, are also implicated.
The contempt application, filed under Form 48 of the Federal High Court Rules, underscores the serious legal consequences of disobeying a subsisting court order.
Notices of consequence of disobedience have been issued for service at both Lagos and Abuja offices of the respondents.
UBA initially sought interlocutory orders on May 27, 2025, to restrain AMCON, Polaris Bank, and Archlight from selling or divesting IBEDC’s 60 per cent stake, citing concerns that such a transaction could negatively affect its interests.
The bank also applied for a Mareva injunction—a legal instrument used to freeze assets—to prevent any transaction involving IBEDC’s controlling shares until the matter is fully resolved.
Despite the court’s previous restraining order, UBA alleged that AMCON and its partners continued to act in defiance of judicial directives, prompting the current contempt proceedings.
The legal action highlights ongoing tensions in Nigeria’s power sector, particularly regarding the management and transfer of controlling stakes in distribution companies.
The dispute over IBEDC shares has broader implications for investor confidence in Nigeria’s power sector.
Analysts suggest that prolonged legal wrangling could affect ongoing privatization efforts and deter foreign investment.
“The IBEDC share sale controversy reflects the need for clear regulatory oversight in Nigeria’s energy sector,” said a market expert who requested anonymity.
“Investors seek predictability, and disputes like this could undermine confidence.”
The case also sheds light on the role of AMCON in managing distressed assets and executing interventions in Nigeria’s corporate sector.
As a government-backed agency, AMCON’s actions are closely scrutinized, especially when they involve private sector stakeholders like UBA and Archlight.
With the next hearing scheduled for October 2, 2025, all eyes are on the Federal High Court in Lagos.
Legal observers anticipate that the court’s decision could set a significant precedent regarding the rights of financial institutions and regulatory agencies in corporate asset sales.
Meanwhile, UBA has indicated its readiness to pursue all legal avenues to ensure compliance with the court’s orders, stressing the importance of protecting its corporate interests.
“The integrity of the judicial process must be upheld,” a spokesperson for UBA said.
As the legal battle unfolds, stakeholders in Nigeria’s energy and financial sectors will closely monitor the outcome, which could influence corporate governance practices and investor confidence across the country.
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