Table of Contents
Key Points
- FBNQuest Trustees gains court approval to appoint a receiver over KEPCO, Sahara Energy’s investment arm controlling key Nigerian power assets.
- Sahara Energy disputes receivership claims, citing court orders restraining lenders from interfering with Egbin Power, Ikeja Electric, and FIPL operations.
- Nigeria’s power sector faces instability as subsidy debts, high interest rates, and flawed privatization leave operators vulnerable to creditor actions.
A Nigerian court in Lagos has authorized FBNQuest Trustees Ltd., a subsidiary of FirstHoldco, the parent company of the country’s oldest bank, to appoint a receiver/manager over KEPCO Energy Resources Nigeria Ltd., the special-purpose vehicle through which Sahara Energy Resources Group controls majority stakes in Egbin Power Plc, Ikeja Electric Plc, and First Independent Power Ltd., clearing the way for the takeover of these strategic energy assets.
The decision follows a protracted legal battle stemming from a disputed loan facility secured by a 70 percent stake in Egbin Power, Nigeria’s largest power plant, and other affiliated assets. KEPCO, majority-owned by Sahara Energy co-founder Tope Shonubi, allegedly defaulted on the debt, prompting the lender to appoint Kunle Ogunba & Associates as receiver/manager in June 2025 under a security deed registered in 2014.
Court ruling fuels ownership row
The takeover move has ignited a fierce ownership dispute, with Sahara Energy insisting its subsidiaries are not in receivership and accusing the lender of flouting subsisting court orders.
In rulings delivered on Aug. 5, 2025, Justice Akintayo Aluko of the Federal High Court in Lagos restrained the lender and its appointed receiver from interfering with the assets or operations of Egbin Power, Ikeja Electric, and FIPL pending the resolution of the case.
Sahara’s legal team argued that the disputed debt had not matured and accused the lender of a “malicious attempt at self-help” designed to bypass due process. The power companies, led by Chief Legal and Regulatory Officer Babatunde Osadare, warned stakeholders to disregard “misleading” advertorials announcing the receivership.
Strategic assets at the heart of the dispute
Egbin Power has an installed capacity of 1,320 megawatts but currently supplies about 624 megawatts to the national grid—the highest by any single generation company in Nigeria. Ikeja Electric, the most commercially viable of the country’s 11 electricity distribution companies, generated N37 billion ($24.16 million) in revenue in May 2025 alone.
The sector has long been plagued by a liquidity crunch, with generation companies claiming the federal government owes them over N4 trillion ($2.61 billion) in unpaid subsidies. Analysts cite high interest rates and flawed privatization for leaving operators heavily leveraged and exposed to creditor takeovers.
Receivership trend deepens in Nigeria’s power sector
KEPCO Energy Resources Nigeria Ltd., the special-purpose vehicle through which Nigerian tycoon Tope Shonubi’s Sahara Energy controls Egbin Power, Ikeja Electric, and First Independent Power Ltd., anchors the group’s generation and distribution interests.
Since the 2013 privatization, at least five DisCos have been seized by creditors, including Ibadan Electricity Distribution Company, recently acquired for N100 billion ($65.29 million). Sector experts, including the Centre for the Promotion of Private Enterprise, warn that conflicts between cost-reflective tariffs sought by investors and the government’s politically driven subsidy regime have worsened the sector’s financial instability.
If upheld, the receivership could shift control of two of Nigeria’s most valuable power sector assets, underscoring the growing willingness of lenders to act aggressively in recovering debts despite pending litigation.
