The management of Egbin Power Plc, Ikeja Electric Plc (IE), and First Independent Power Limited (FIPL) has denied being in receivership, adding that the court has warned against “adverse actions” by a party.
This is according to a statement by Babatunde Osadare, Chief Legal and Regulatory Officer of Ikeja Electric, on behalf of the power companies’ management.
Osadare further refuted false media reports alleging the appointment of “Kunle Ogunba Esq. SAN” as Receiver/Manager over the said entities.
Rebuttal
- In the statement, Osadare alleged that media reports erroneously claim the appointment of a Receiver/Manager over KEPCO Energy Resource Nigeria Limited, NG Power-HPS Limited, and New Electricity Distribution Company, with operating companies as follows: KEPCO (Egbin Power), NG Power-HPS Limited (FIPL), and New Electricity Distribution Company (Ikeja Electric).
He denied the development.
“We state unequivocally and for the record that Egbin Power Plc, First Independent Power Limited, and Ikeja Electric Plc are absolutely not in receivership, and their assets, businesses, or undertakings are not under the management of any external Receiver/Manager whatsoever,” he added.
- Osadare alleged that the claims were not only false but “represent a gross misrepresentation of facts and a malicious attempt at self-help designed to subvert the course of justice.”
- Osadare admitted that the rulings delivered on August 5, 2025 (Suit Nos. FHC/L/CS/1242, FHC/L/CS/1244, FHC/L/CS/1245), by Honorable Justice Akintayo Aluko of the Federal High Court in Lagos, “explicitly restrained the Lenders and their purported Receiver/Manager from taking any adverse actions.”
- Osadare argued that the rulings specifically prohibit the purported “Receiver/Manager from: accelerating the disputed loan facility before its maturity; interfering in any manner with the assets, businesses, or undertakings of the Power Entities, including operational accounts; enforcing any share security over the assets of the Power Entities or their sponsors, based on the disputed debt; or unilaterally enforcing any finance documents related to the disputed debt.”
- The lawyer urged the general public, valued customers, financial partners, regulators, and all stakeholders to completely disregard the falsehoods presented in the aforementioned advertorials and any related unfolding misleading press releases.
- He highlighted that the core matters referenced are actively being litigated and the Lenders, represented by the Receiver/Manager, have formally submitted to the Court’s jurisdiction.
He maintained that, “Egbin Power, First Independent Power, and Ikeja Electric remain fully operational, financially stable, and firmly under the control of their legitimate management. Our focus remains unwavering on our core mission: providing reliable electricity and driving the growth of Nigeria’s critical power sector. We have full confidence in the Nigerian judicial system to fairly resolve the underlying disputes.”
- Osadare told stakeholders that the power companies reaffirm their steadfast commitment to the development of the nation’s power sector and their vital role in responsibly powering homes, communities, and businesses across the nation.
- Nairametrics gathers that the matter involving the power companies is still pending final determination.
What to Know About Companies Winding Up / Receivership
The Federal High Court has jurisdiction over the creation, formation, and operations of companies, among other company-related matters.
According to the Companies and Allied Matters Act, the various modes for winding up (dissolving) a company are by the court, voluntary winding up, and winding up under the supervision of the court.
In the case of winding up by a court, a petition is filed by a petitioner (another company, creditor, contributory, contractor, etc.) who claims an entitlement based on debt. The court will review the evidence before passing an order for or against the company’s dissolution.
The voluntary winding up of a company is initiated either by its shareholders or creditors, where the company is proven to be insolvent (unable to pay its debts).
A winding up under court supervision occurs when a special resolution by the company is forwarded to the court, asking it to supervise the company’s dissolution.
Recall that the Federal High Court Headquarters had in March 2025 announced the creation of an ‘Insolvency Unit’ for the Court, aimed at addressing the implementation of laws relating to company restructuring and dissolution in Nigeria.
According to the court, the laws related to “Company Voluntary Arrangements (CVA), Administration, Receivership, Winding Up (Dissolution), and various forms of restructuring of companies” in Nigeria.
The unit was created following approval by the Chief Judge of the Federal High Court, Justice John Terhemba Tsoho.