A legal battle with significant implications for Nigeria's power sector has taken a new turn, as a Federal High Court in Lagos has affirmed the appointment of Mr Kunle Ogunba (SAN) as the Receiver/Manager for three prominent energy companies: Ikeja Electricity Distribution Plc (IKEDC), First Independent Power Limited, and Egbin Power Plc.
The court, presided over by Justice Akintayo Aluko in his ruling declared that Ogunba's appointment over the three firms is a “completed act,” a decision that came during a hearing on various applications filed by the defendants/applicants.
The consolidated suits, numbered FHC/L/CS/1245/2025, FHC/L/CS/1242/2025, and FHC/L/CS/1244/2025, pit a consortium of twelve leading Nigerian banks against a trio of power sector entities.
The applicants in the suit, which include financial heavyweights such as Zenith Bank Plc, United Bank for Africa Plc, First City Monument Bank Limited, Union Bank of Nigeria Plc, Sterling Bank Plc, Fidelity Bank Plc, Ecobank Nigeria Limited, Access Bank Plc, Keystone Bank Limited, First Bank of Nigeria Limited, First Trustees Limited and FBNQUEST Merchant Bank Limited, appointed the receiver/manager over the plaintiffs.
The banks initiated the court action following the power firms' alleged inability and failure to meet their debt obligations.
The plaintiffs/respondents in the case are Kepco Energy Resources Nigeria Limited, New Electricity Distribution Company Limited, and Ng Power-HPS Limited.
These companies, now under the oversight of a court-affirmed Receiver/Manager, are at the center of a complex legal and financial dispute that underscores the challenges facing Nigeria's privatised power sector.
During the proceedings, the court delivered its rulings on two key applications: the plaintiffs' request for an interlocutory injunction and the banks' application for the dismissal of the entire suit.
The court refused to dismiss the case, signalling that there are “serious issues to be determined between the parties at the substantive hearing.”
Justice Aluko held that the application succeeded in parts but upheld the banks' argument that the court could not restrain a ‘completed act.’
Justice Aluko's decision in the lead suit, FHC/L/CS/1242/2025, was also extended to the sister suits.
This means the orders granted apply equally to the case of NG Powers Hp Limited vs. Access Bank Nigeria Plc and seven others (FHC/L/CS/1244/2025), as well as the suit between New Electric Distribution Company Limited vs. Ecobank Nigeria Limited and eight others (FHC/L/CS/1245/2025).
This consolidated ruling ensures consistency across all related matters and solidifies the position of the banks.
The legal proceedings are now set to continue, with the next hearing adjourned to October 20, 2025, for mention.
The original suit, filed by the defendant banks, is pending before another court presided over by Justice Deinde Dipeolu.
This separate action was brought under sections 554 and 556 of the Companies and Allied Matters Act (CAMA) and other relevant court rules.
In this particular suit, the banks are seeking several declarations and orders to cement the receiver/manager's authority.
The banks' demands, as outlined in their court papers, seek to formalise the control they have exercised over the power companies.
They are asking the court for a declaration that Mr Kunle Ogunba (SAN), “being the duly appointed Receiver/Manager of the pledged assets,” is entitled to perform his duties without any “interference, obstruction and/or hindrance.”
This includes preventing any director, shareholder, or employee of the debtor companies from interfering with the Receiver/Manager's work.
Furthermore, the banks are seeking a declaration that upon the appointment of the Receiver/Manager, the debtor companies' management and personnel have “no rights, powers, or authority to enter into and remain in possession or deal in any manner whatsoever with the assets” without the Receiver/Manager's explicit approval.
This effectively transfers control and management of the companies’ pledged assets to Ogunba.
Another key demand from the banks is an order that under the deeds of appointment, the Receiver/Manager is entitled to perform ‘all the functions,’ which explicitly includes “the selling of the… pledged Assets to offset the outstanding indebtedness.”
This power of sale is a critical step in the debt recovery process and highlights the seriousness of the financial claims.
Finally, the banks requested an “order of perpetual injunction” to restrain the debtor companies and their agents from “disturbing the receiver/manager” and from “tampering with, alienating or disposing” any of the pledged assets.
This would provide the Receiver/Manager with the full legal backing to carry out his duties without any challenge from the former management.
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