UBA Challenges AMCON’s Unilateral Sale of IBEDC, Seeks Legal Intervention to Protect Stake

The United Bank for Africa (UBA) Plc has filed a motion at the Federal High Court in Lagos to be joined as a party in an ongoing lawsuit concerning the contested sale of the Ibadan Electricity Distribution Company (IBEDC). UBA asserts that the Asset Management Corporation of Nigeria (AMCON) executed the sale without consulting key stakeholders, including the bank itself.

The original suit, marked FHC/L/CS/418/2025, was initiated by 86 Gardens Limited against Archlight Nigeria Limited, Synergy Attorneys, and the Corporate Affairs Commission (CAC). The plaintiff alleges a breach of a Share Sales Agreement (SSA) and seeks a declaration of entitlement to 50% equity in Archlight Nigeria Limited, contingent upon the acquisition of IBEDC’s 60% stake.

UBA’s motion to join the suit is predicated on its financial involvement dating back to 2013, when it participated in a $162.4 million loan facility to Integrated Energy Distribution and Marketing Company (IEDM) for the acquisition of IBEDC’s majority shares. UBA contends that this investment translates to a 21.54% stake in IEDM’s interest in IBEDC, a stake now jeopardized by AMCON’s unilateral sale.

In its affidavit, UBA argues that AMCON’s actions, including the appointment of a receiver over IEDM and the subsequent sale of IBEDC’s shares, were conducted without the requisite consents from other lenders. The bank emphasizes that its interests are distinct and independent, and that the sale, reportedly executed at a value significantly below the asset’s worth, undermines its financial stake.

During the recent court proceedings, UBA’s counsel, Temilolu Adamolekun, emphasized the necessity of the bank’s inclusion in the suit to ensure that its interests are adequately represented and protected. Justice Musa Kakaki has adjourned the matter to July 16, 2025, for further hearing.