Exorbitant interest rates and policy inconsistencies have driven Ikeja Electric into receivership, according to the Centre for the Promotion of Private Enterprise (CPPE).

This revelation was articulated in a statement signed by the organisation’s Director/CEO, Dr. Muda Yusuf, on Wednesday.

The CPPE statement expressed, “It is both perplexing and troubling that Ikeja Electric, often hailed as the country’s top-performing electricity distribution company with a thriving customer base, has found itself in receivership.”

“This situation implies that other distribution companies could face a similar fate in the near future,” the statement continued.

The organisation highlighted that the crisis plaguing Ikeja Electric, and by extension other electricity distribution companies (DisCos), is a stark reflection of the severe macroeconomic environment—most notably, the burden of exorbitant interest rates.

“What has befallen the DisCos is partly a result of the prohibitive interest rate climate, given the high degree of leveraging among most DisCos. It is exceedingly challenging for any long-term project to endure the current punishing lending rates,” he observed.

With the Central Bank of Nigeria (CBN) maintaining its Monetary Policy Rate (MPR) at 27.5% as of July 2025, Nigeria ranks among the nations with the steepest borrowing costs in Africa.

Dr. Yusuf also pointed out a fundamental structural imbalance within the Nigerian power sector, noting that conflicting interests among investors, consumers, and political actors have created a complex web of challenges.

“There are evident conflicts between the commercial objectives of private investors (DisCos and GenCos), the populace’s desire for affordable electricity, the industrialists’ demand for an investment-friendly electricity tariff, and a politically palatable tariff regime. The government’s obstruction and public resistance to cost-reflective tariffs, despite the demands from private investors in the sector, further complicate the situation. This has spawned numerous contradictions and conflicts that necessitate careful and strategic resolution.”

Ikeja Electric Plc refutes receivership claims

The management of Egbin Power Plc, Ikeja Electric Plc (IE), and First Independent Power Limited (FIPL) previously denied being in receivership, asserting that the court has cautioned against “adverse actions” by any party.

Babatunde Osadare, Chief Legal and Regulatory Officer of Ikeja Electric, dismissed false media reports alleging the appointment of “Kunle Ogunba Esq. SAN” as Receiver/Manager over the aforementioned entities.