UBA moves to join lawsuit, opposes alleged sale of IBEDC
United Bank for Africa (UBA) Plc has filed an application before the Federal High Court in Lagos, seeking to be joined as a party in an ongoing legal dispute over the controversial sale of the Ibadan Electricity Distribution Company (IBEDC). The bank is also challenging the legality of the sale, which it claims was conducted without proper consultation with key stakeholders.
The suit, originally instituted by 86 Gardens Limited (Suit No. FHC/L/CS/418/2025), targets Archlight Nigeria Limited, Abiodun Jamiu Owonikoko (SAN) of Synergy Attorneys, and the Corporate Affairs Commission (CAC) as the first to third defendants.
Through its counsel, Seni Adio (SAN), 86 Gardens is seeking the court’s determination on several issues, including whether Archlight breached a Share Sales Agreement (SSA) by failing to transfer 50% of its equity to the plaintiff. The firm also alleges a breach of a Tripartite Custody Agreement by Owonikoko, who it claims failed to release key share transfer documents or register them with the CAC, as required when Archlight was selected as the preferred bidder to acquire 60% ownership of IBEDC from the Asset Management Corporation of Nigeria (AMCON).
Based on these claims, 86 Gardens is asking the court for orders of specific performance, compelling the defendants to register and effect the share transfer, along with N100 million in general damages.
UBA’s Motion for Joinder
UBA, represented by lawyer Temilolu Adamolekun, filed a motion under Order 9 Rule 24 of the Federal High Court Civil Procedure Rules 2019, seeking to be added as a defendant. In its supporting affidavit, deposed by UBA staff member Afamefuna Ogbonna, the bank asserted a significant financial interest in the transaction.
According to the affidavit, UBA was among the consortium of lenders that provided a $162.4 million loan to Integrated Energy Distribution and Marketing Company Limited (IEDM) in 2013 for the acquisition of IBEDC’s 60% stake. UBA claims its interest equates to a 21.54% share of IEDM’s holding in IBEDC.
UBA alleges that AMCON, after taking over Polaris Bank—formerly the facility agent—wrongfully assumed management of the loan facility and unilaterally appointed a receiver over IEDM without consulting other lenders. The bank argues that AMCON’s alleged sale of IBEDC was unauthorized and grossly undervalued at less than 20% of the asset’s true worth.
UBA contends that the sale directly affects its secured interest, which was not extinguished or transferred to AMCON. The bank insists it is entitled to be heard in the case to prevent a potential court ruling that could validate what it describes as an “illegal sale.”
Hearing Developments
At the most recent hearing on Friday, legal representatives for all parties appeared before Justice Musa Kakaki. Seni Adio (SAN) represented the plaintiff, Babatunde Ogala (SAN) appeared for Archlight, Victor Okpara (SAN) for Owonikoko, and Temilolu Adamolekun for UBA.
Adio informed the court that the CAC, listed as the third defendant, had been served but had not responded to court processes. He also questioned UBA’s interest in the matter, noting that the issue of “preferred bidder” had already been resolved.
Ogala confirmed receipt of UBA’s joinder motion and noted that all required documents had been filed. Okpara, on behalf of the second defendant, told the court they had filed a conditional appearance and various responses, including objections to the interim order.
Adamolekun, speaking for UBA, clarified that contrary to claims made by other parties, UBA had never sold its interest in IBEDC to AMCON. He also argued that UBA’s joinder application should take precedence, as the court cannot make a fair ruling on the underlying issues without hearing from all interested parties.
Justice Kakaki adjourned the matter to July 16, 2025, for further hearing, stating that the issue of application priorities and joinder would be addressed on that date.
