FBNQuest vs Ikeja Electric: Power Companies Dispute

A legal storm is brewing in Nigeria’s energy sector as a group of electricity companies push back against what they describe as a misleading receivership claim initiated by legal counsel representing several Nigerian banks. At the heart of the dispute is a controversial appointment of a receiver/manager over the assets of New Electricity Distribution Company Limited and its 70 percent stake in Ikeja Electric Distribution Plc (Ikeja DISCo). The companies involved are publicly disputing the claim, accusing the banks’ legal representative of misrepresenting the court’s position.

Three power companies—KEPCO Energy Resource Nigeria Limited, NG Power-HPS Limited, and New Electricity Distribution Company Limited—have come forward to challenge the validity of an appeal filed by senior advocate Kunle Ogunba. Representing several financial institutions, including FBNQuest Trustees Limited, Ogunba has been named in publications asserting that he was appointed as a receiver/manager over the power firms’ assets. However, the companies are firmly denying that any such receivership has been legally recognized.

In a joint public notice, the power entities declared that their assets are not in receivership. They further noted that there is an active appeal pending, filed by Ogunba himself, which casts doubt on the claim that his appointment was sanctioned by the court. According to them, this ongoing appeal directly contradicts the narrative presented in various paid media publications suggesting the court had approved Ogunba’s appointment.

This situation escalated after a legal notice was published, claiming that Kunle Ogunba had been officially appointed as receiver/manager by FBNQuest Trustees Limited. The notice stated that the appointment gave him control over the full undertakings, stock, goodwill, and assets—both movable and fixed—of the New Electricity Distribution Company and its significant stake in Ikeja Electric. It referred to a security deed registered in 2013 and allegedly activated to justify the receivership.

However, according to the management of the affected power companies, including Ikeja Electric Plc and Egbin Power Plc, this appointment is not only invalid but also in violation of standing court orders. They pointed to specific rulings delivered on June 24, June 27, and August 5, 2025, which they say explicitly restrain Ogunba from acting in the role of receiver/manager.

Babatunde Osadare, Chief Legal and Regulatory Officer of Ikeja Electric, released a statement on behalf of the management, firmly refuting the idea that the companies are in receivership. He emphasized that no court has granted Ogunba the authority to take over the companies’ assets, and any suggestion otherwise is not only misleading but also potentially damaging.

Interestingly, the power companies argue that Ogunba’s own actions contradict his public claims. They allege that after publishing an advertorial suggesting that the court endorsed his appointment, Ogunba himself filed a notice of appeal just a day later—on August 7, 2025—challenging the same court decision. In this appeal, he reportedly claimed the judge made an error by restraining him from taking adverse steps, despite supposedly validating his appointment.

The companies question why a legal representative would challenge a court order that supposedly supports his position. “Why is he appealing against an order he claims was granted in his favor?” they asked in their statement, suggesting that the contradiction weakens the legal credibility of his position.

Moreover, they claim that Ogunba’s second publication on August 8 failed to disclose that he had already filed an appeal challenging the ruling. Instead, they argue, the publication falsely implied that the court had endorsed his authority without providing the full legal context or acknowledging the pending appeal.

The companies also highlighted a specific legal question currently under judicial review. Ogunba, in a separate case filed after the June 24 court order, has asked the court to determine whether his appointment as receiver/manager gives him the legal right to act under the Companies and Allied Matters Act. According to the companies, this move essentially admits that the legitimacy of his appointment is still unresolved and subject to the court’s decision.

They are urging the public and industry stakeholders to ignore what they describe as misleading narratives and to refrain from interpreting paid legal notices as definitive rulings. The companies insist they are committed to due process and will not resort to media battles in resolving what is ultimately a matter for the courts.

On the other side, Ogunba’s appeal, as seen in documents obtained by the media, reveals that the banks he represents are challenging parts of the August 5 court ruling delivered by Hon. Justice Akintayo Aluko. Specifically, they are contesting the portion of the judgment that restrained the receiver/manager from taking any adverse steps, arguing that this restraint is incompatible with the court’s acknowledgment of the statutory nature of the appointment.

The appeal seeks to overturn the court’s decision to grant an interlocutory injunction in favor of the power companies. Ogunba and the banks also argue that the court erred in dismissing their motion challenging its jurisdiction, insisting that the trial court should not have entertained the respondents’ lawsuit in the first place.

This legal faceoff between the banks and the power companies is far from over. As court proceedings continue, the central issue remains whether the appointment of a receiver/manager over the assets of New Electricity Distribution Company and its stake in Ikeja DISCo is valid and enforceable. The outcome will have significant implications not just for the companies involved, but also for the broader energy and financial sectors in Nigeria.

For now, both sides appear prepared to see the case through the full judicial process. But one thing is clear: the legal interpretation of receivership in this context will be closely watched by stakeholders across the power and finance industries.