The $6 Billion Mambilla Scandal: Obasanjo’s Shocking Testimony and the Untold Story
It’s one of the biggest corruption cases tied to Nigeria’s power sector—and it’s unraveling fast in court. The Mambilla Hydropower Project, a proposed game-changer for electricity generation in Nigeria, has instead become a symbol of how massive infrastructure dreams can get buried in politics, forgery, and alleged fraud.
At the center of it all is Dr. Olu Agunloye, a former Minister of Power and Steel. Now facing trial by the Economic and Financial Crimes Commission (EFCC), Agunloye’s legal troubles have deepened with the introduction of fresh evidence—including a damning statement from former President Olusegun Obasanjo.
What is the Mambilla Project?
Originally conceived in the 1980s, the Mambilla Hydroelectric Power Project in Taraba State was designed to be Nigeria’s largest hydro power plant, capable of generating over 3,000 megawatts—enough to transform Nigeria’s electricity supply.
Over the decades, the project has suffered from delays, political red tape, and conflicting contracts. But the biggest controversy began in May 2003, during the final days of the Obasanjo administration.
The Contract Controversy: How It All Began
In May 2003, Dr. Agunloye—then serving as Minister of Power and Steel—allegedly awarded a $6 billion contract for the Mambilla project to Sunrise Power and Transmission Company Limited, a private Nigerian firm.
According to the EFCC, this award was:
- Unauthorized by the Federal Executive Council (FEC)
- Not backed by funding
- Issued in defiance of direct presidential instructions
Obasanjo’s administration had ordered that the process be halted, and competitive bidding be introduced. But Agunloye allegedly ignored this directive and hurriedly issued a letter of award just weeks before the administration ended.
EFCC Charges and Allegations
The EFCC launched an investigation in 2017 following a series of legal disputes between the Nigerian government and Sunrise Power. The matter escalated when:
- Sunrise filed a $400 million arbitration case against Nigeria at the International Chamber of Commerce (ICC).
- Nigeria claimed that the original contract was fraudulently issued by Agunloye.
In December 2023, EFCC declared Agunloye wanted. By January 2024, he was arraigned on a seven-count charge including:
- Forgery
- Criminal breach of trust
- Corruption
- Disobedience of lawful orders
He was remanded in Kuje Correctional Centre, then released on ₦50 million bail.
The EFCC also revealed suspicious payments totaling over ₦5 million made to Agunloye’s account by a director linked to Sunrise Power between August and November 2019.
Obasanjo’s Bombshell Statement (June 2025)
The latest blow to Agunloye’s defense came on June 16, 2025, when the EFCC submitted a certified statement from former President Olusegun Obasanjo to the FCT High Court in Abuja.
Here’s what Obasanjo’s statement revealed:
- He never approved the contract to Sunrise Power.
- The issue was not discussed or ratified by the Federal Executive Council in 2003.
- Agunloye was instructed to withdraw the contract memo and allow for proper bidding, but he ignored the order and went ahead to issue the award.
- Obasanjo reiterated this in a personal interview with EFCC officials in February 2024.
This testimony was presented by the EFCC’s third witness, ACP Umar Babangida, who also submitted supporting bank documents and internal memos showing the flow of funds to Agunloye’s account.
Current Court Status
The case is ongoing before Justice Jude Onwuegbuzie at the FCT High Court. The judge has allowed amendments to the charges multiple times, showing the evolving nature of the investigation. The trial resumed on June 18, 2025, with more witness testimonies and forensic analysis expected.
Why This Case Matters
- Scale of the fraud: A $6 billion contract allegedly awarded without due process is not just a scandal—it’s a national economic setback.
- International implications: Nigeria is now battling Sunrise Power in an international arbitration court, with the risk of paying hundreds of millions in damages.
- Public trust: The case reflects deep-rooted flaws in how major contracts are awarded, and raises urgent questions about transparency, accountability, and executive oversight.
What do you think of this case?
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