Obasanjo never approved $6 Mambilla power contract – Witness tells court in Agunloye’s trial

Fresh revelations have emerged in the ongoing trial of Dr. Olu Agunloye, former Minister of Power and Steel, over the controversial $6 billion Mambilla Hydropower Project contract.

Testifying at the Federal Capital Territory (FCT) High Court in Abuja on Monday, a key witness disclosed that neither former President Olusegun Obasanjo nor the Federal Executive Council (FEC) approved the deal awarded to Sunrise Power and Transmission Company Limited.

The third prosecution witness, Umar Babangida, an investigator with the Economic and Financial Crimes Commission (EFCC), told Justice J.O. Onwuegbuzie that Obasanjo had categorically denied ever authorizing the contract. Babangida said the former president’s position was clearly expressed both in a written statement and during an in-person meeting with EFCC operatives.

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According to the witness, “Obasanjo made it clear that he did not give Agunloye the go-ahead to sign or award any contract on behalf of the Federal Government regarding the Mambilla Hydropower Project.”

According to a statement by Dele Oyewale, EFCC’s Head of Media and Publicity, Babangida testified that a Certified True Copy (CTC) of a letter written by Obasanjo on November 27, 2023, to the Ministry of Justice, indicated that the former President never approved the Sunrise contract.

“The former President stated that he received a memo from Agunloye and only minuted on it, directing him to present it to the FEC for deliberation.

“He did not give any approval for contract award, and no such approval was granted during the FEC meeting on May 21, 2003,” Babangida told the court.

Further testifying, the EFCC witness said that during a February 7, 2024, meeting with investigators, Obasanjo reaffirmed his earlier position and submitted a signed statement, reiterating that the contract awarded on May 22, 2003, was not authorised by him or the FEC.

“Obasanjo clearly told the team that Agunloye was directed to withdraw his memorandum and open up the project for competitive bidding.

“Yet, just 24 hours after that directive, he went ahead to award the contract to Sunrise Power,” Babangida said.

Agunloye is currently facing a seven-count charge brought by the EFCC over alleged fraudulent contract award and official corruption linked to the $6 billion Mambilla Power Project deal.

The EFCC investigator also disclosed that financial records showed the former minister received several suspicious payments from Shotire Jide Abiodun, a director in Sunrise Power and personal assistant to the company’s owner, Leno Laitan Adesanya.

“We traced several bank accounts operated by the defendant and found that on August 10, 2019, he received ₦3.6 million from Abiodun.

“Another ₦500,000 came in on October 22, 2019, and ₦1.1 million on November 13, 2019 – all from the same individual,” Babangida told the court.

Under cross-examination led by Abba Muhammed, prosecution counsel, the witness affirmed that these transactions raised red flags, further connecting the former minister to the company at the centre of the contract scandal.

The trial has been adjourned to June 18, 2025, for continuation.