Nigeria’s struggling electricity sector has taken another hit as a court-appointed receiver has been named for KEPCO Energy Resources and its subsidiary, Egbin Power—the country’s largest power generation company. This move, initiated by lenders, underscores growing concerns about the financial stability of the power industry.
According to a public notice released on June 19, attorney Kunle Ogunba was appointed as the receiver/manager on behalf of creditors. The appointment comes amid an estimated ₦2 trillion ($1.31 billion) cash shortfall facing the sector.
KEPCO, which holds a 70% stake in Egbin Power, is now contesting the receivership in court. Both companies have denied the claims presented in the notice and are actively seeking legal intervention to halt the enforcement.
This development adds to a mounting crisis in Nigeria’s power industry, which has struggled to remain viable since the privatization of electricity assets over a decade ago. Many firms involved in the 2013 privatization took on significant debt to acquire assets and are now facing serious repayment challenges. With banks focused on debt recovery, access to new capital for infrastructure upgrades and renewable energy expansion remains limited.
Industry experts warn that the situation may discourage future private investment and reignite calls for government intervention. As Nigeria works to improve its grid and power capacity, the fate of KEPCO and Egbin Power may signal broader challenges for private sector players in the energy landscape.
