Claimed $6bn Mambila Project Fraud: Witness Testifies Obasanjo Did Not Approve Compn

Claimed $6bn Mambila Project Fraud: Witness Testifies Obasanjo Did Not Approve Contract with Sunrise Power Company

**Allegations of $6bn Fraud in Mambila Project: Witness Testifies That Obasanjo Did Not Approve Contract with Sunrise Power Company** During the trial of former Minister of Power and Steel Development, Olu Agunloye, on Monday, June 16, 2025, the third prosecution witness, Umar Babangida, asserted before Justice J.O. Onwuegbuzie at the Federal Capital Territory High Court in Apo that former President Olusegun Obasanjo and the Federal Executive Council (FEC) did not authorize a contract with Sunrise Power and Transmission Company Limited for the Mambila Power Project.

The witness stated, "Former President Chief Olusegun Obasanjo, who chaired the FEC meeting on May 23, 2003, communicated with the Attorney General of the Federation and Minister of Justice on November 27, 2023. In his correspondence, he recounted the proceedings of the FEC meeting and confirmed that he had not approved the then Minister of Power and Steel's proposal to award the contract to Sunrise Power and Transmission Company Limited. He subsequently requested a Certified True Copy (CTC) of this letter from the Federal Ministry of Justice and received a response."
He explained, "Upon reviewing the CTC, it was clear that former President Obasanjo had received a memorandum from Minister Olu Agunloye, which he annotated before directing Agunloye to submit it to FEC for discussion. However, he did not grant approval for the contract awarding, nor was any such approval given during the FEC meeting on May 21, 2003." Continuing his testimony, he noted, "Following up on former President Obasanjo's response, the investigating team met with him on February 7, 2024. He reiterated that he had not authorized the Minister of Power to award the contract to Sunrise Power and Transmission Company Limited, a position he documented and signed.

The former President made it clear that he directed the Minister to withdraw his memorandum, indicating that the contract awarded on May 22, 2003, was not done on behalf of the Federal Government of Nigeria." The witness further informed the court that despite the presidential directive instructing Agunloye to withdraw and nullify the Memorandum of Understanding (MoU) with Sunrise Power and Transmission Company Limited and to allow for broader competitive bidding for the Mambila Hydro-power Project, Agunloye proceeded to award the contract to Sunrise Power and Transmission Company Limited just 24 hours later. "The defendant, who was the Minister of Power and Steel at the time, was explicitly directed to retract his memorandum and seek additional investors for the Mambilla Hydro Power Project; however, within 24 hours, on May 22, 2003, he awarded the contract to Sunrise Power and Transmission Company Limited without proper approval or authorization, in violation of the President's and FEC's directives," he stated. Agunloye is currently facing prosecution by the Economic and Financial Crimes Commission (EFCC) on seven counts related to the fraudulent award of the contract and official corruption, amounting to $6 billion.
The witness, an investigator with the EFCC, also revealed that his team discovered financial records indicating that Agunloye received significant sums of money from Shotire Jide Abiodun of Sunrise Power and Transmission Company Limited.