The Assets Management Corporation of Nigeria (AMCON) has taken over the Ibadan Electricity Distribution Company (IBEDC) Ltd.
This information was revealed on Friday by the Chief Operating Officer, John Ayodele, in an internal memo to members of staff.
“Further, to the judgment wherein the Federal High Court on the 8th of September 2021 granted preservative orders in favour of Asset Management Corporation, AMCON, (being the Receiver/Manager of Integrated Energy Distribution and Marketing Limited); the court has appointed Mr Kunle Ogunba Esq.SAN to act as Receiver/ Manager Nominee in the receivership action,” Mr Ayodele said.
Mr Ayodele also disclosed that the receiver appointed, Mr Ogunba, had already held a meeting with the management staff.
The action follows the judgement by the Federal High Court on September 8, 2021, which granted orders in favour of AMCON as Receiver/Manager of Integrated Energy Distribution and Marketing (IEDM) Limited, IBEDC’s core investor, over defaults in a Loan Service Agreement with Polaris Bank.
The takeover also includes the assets of IEDM, including shares and interests in related companies and entities, in addition to the monies kept in banks.
In 2018, the NERC in an order on June 19, 2018, directed IBEDC to commence the process of dissolution of its Board within 21 days period, citing alleged delay in the repayment of some loans by IBEDC investors.
The loan was granted by IBEDC from funds released to all DisCos by the CBN under the Nigeria Electricity Market Stabilisation Funds (NEMSF) for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses.
The IBEDC, led by Tunde Ayeni, responded that the electricity company had completely fulfilled its financial commitments.
In response, the directors of the electricity company sued NERC for its decision to suspend them from the Board of IBEDC.
In July 2020, the Federal High Court in Abuja set aside the order from NERC that removed the Tunde Ayeni led Board of Directors of the IBEDC.