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Cabinet officials

Witness Testifies Against Former Minister in $6 Billion Mambila Power Project Scandal

Strategic Insights

— 1 min read

Prosecution Witness 3, Umar Babangida, testified in the trial of former Minister of Power and Steel Development, Olu Agunloye, that former President Olusegun Obasanjo and the Federal Executive Council did not grant any contract approval to Sunrise Power and Transmission Company Limited for the Mambila Power Project. According to the witness, Obasanjo wrote to the Attorney General of the Federation and Minister of Justice on November 27, 2023, confirming that he did not give approval to Agunloye to award the contract. The witness also stated that despite a presidential directive to withdraw and nullify the Memorandum of Understanding with Sunrise Power and Transmission Company Limited, Agunloye went ahead and awarded the contract 24 hours after the directive.

Key Takeaways:

  • Former President Olusegun Obasanjo did not grant any contract approval to Sunrise Power and Transmission Company Limited for the Mambila Power Project.
  • The Federal Executive Council did not give approval for the contract to be awarded to Sunrise Power and Transmission Company Limited.
  • Former Minister of Power and Steel Development, Olu Agunloye, was directed to withdraw his memorandum and invite more investors for the Mambila Hydro Power Project, but awarded the contract to Sunrise Power and Transmission Company Limited 24 hours after the directive.
  • Agunloye received millions of naira from one Shotire Jide Abiodun of Sunrise Power and Transmission Company Limited.
  • The Economic and Financial Crimes Commission (EFCC) is prosecuting Agunloye on a seven-count charge bordering on fraudulent award of the contract and official corruption to the tune of $6 billion.
  • The witness, Umar Babangida, is an investigator with the EFCC.
  • Former President Obasanjo provided details of the FEC meeting of May 23, 2003, where he did not give approval for the contract.

Statistics:

  • $6 billion: The amount of money involved in the alleged fraudulent contract award.
  • 7: The number of counts in the charge against Agunloye.
  • 24 hours: The time frame within which Agunloye awarded the contract to Sunrise Power and Transmission Company Limited after receiving the presidential directive.
  • Millions of naira: The amount of money Agunloye received from Shotire Jide Abiodun of Sunrise Power and Transmission Company Limited.
  • 2: The number of times former President Obasanjo wrote to the Attorney General of the Federation and Minister of Justice confirming that he did not give approval for the contract.
  • 1: The number of investigating team that met with former President Obasanjo on February 7, 2024.

Sources:

  • [Nigerian Tribune, June 16, 2025]
  • [The Guardian, June 16, 2025]

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