FBNQuest Trustees gains court approval to appoint a receiver over KEPCO, Sahara Energys 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.
Nigerias 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 countrys 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, Nigerias 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 rowThe 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.
Saharas 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.