The Nigerian power sector is facing fresh uncertainty following a public notice that KEPCO Energy Resources Nigeria Ltd—the majority owner of Egbin Power Plc—has been placed under receivership by FBNQuest Trustees Ltd over unpaid debts. The notice stated that a Receiver/Manager has been appointed by the court to take control of KEPCO’s assets, including its 70% stake in Egbin, Nigeria’s largest thermal power plant. However, KEPCO’s parent firm, Sahara Group, strongly denies the receivership claim, insisting that Egbin Power, Ikeja Electric, and First Independent Power remain financially stable and fully under the control of their legitimate management.
KEPCO’s 2013 acquisition of Egbin Power was backed by credit facilities secured through a Security Deed with FBNQuest. The lender has now initiated recovery proceedings, citing the deed registered in 2014 and recently reactivated in 2025. The Receiver’s appointment has triggered instructions for regulatory bodies, banks, and power agencies to freeze dealings with KEPCO assets, pending further court direction. However, Sahara Group says these claims ignore subsisting court rulings that bar enforcement of any loan terms before maturity and restrain any interference with the power firms’ operations.
The development has caused alarm in the power industry, especially given the strategic importance of Egbin Power to Nigeria’s grid. Industry stakeholders fear that if Egbin is dragged into receivership, it could further destabilise the already fragile sector—where five DisCos are already under bank control. Experts warn that receivership typically prioritises debt recovery over public interest, raising fears of disruptions to electricity supply, jobs, and investment. Analysts, including CPPE’s Muda Yusuf, have called for urgent government intervention to avoid a full-blown sector collapse, stressing the need to reconcile commercial realities with social and economic goals.
