Power Sector Crisis Deepens as Court Places Major Firms in Receivership

By Diafa Doubra,

In a major development that underscores the growing crisis in Nigeria’s power sector, a federal court has placed Ikeja Electric and KEPCO Energy Resources under receivership. The move follows a ₦2 trillion financial crisis that has rocked the electricity industry, affecting six of the country’s eleven distribution companies.

According to sources, the court’s decision was influenced by mounting debts and poor performance in electricity distribution and generation. Industry insiders say the companies failed to meet financial obligations tied to regulatory benchmarks and loan repayments, prompting legal intervention.

The Federal Government, through the Bureau of Public Enterprises (BPE) and the Nigerian Electricity Regulatory Commission (NERC), had reportedly been monitoring the deteriorating state of affairs for months before resorting to legal action.

Experts warn that the court’s ruling could create further uncertainty in the power sector, which has long struggled with inefficiency, insufficient generation, and irregular supply. The development is also raising concerns about the future of privatization in Nigeria’s power industry.

While government officials have pledged to stabilize the sector and attract fresh investment, the latest development suggests deeper structural issues that require urgent reform beyond legal actions.