EFCC Tells Court Obasanjo Ordered N11bn Top-up for Mambilla Hydropower Project

A prosecution witness told an Abuja court that former President Olusegun Obasanjo instructed Olu Agunloye, former Minister of Power and Steel, to increase the budget for the Mambilla Hydroelectric Power project by N11 billion, on top of the N6 billion already approved in the 2003 budget.

Umar Babangida, an Assistant Commissioner of Police (ACP) and EFCC investigator, claimed during cross-examination by Agunloye’s lawyer, Adeola Adedipe SAN.

Agunloye is facing trial before Justice Jude Onwuegbuzie, sitting in Abuja, on seven amended charges, including disobeying presidential directives, conspiracy, forgery, and receiving gratification. He has pleaded not guilty.

Babangida told the court that it took 23 years from feasibility studies in 1981 for the project to be awarded in 2003, with seven companies initially screened for the construction contract.

The witness said Obasanjo held a private meeting with Agunloye on May 20, 2003, a day before a Federal Executive Council (FEC) meeting, and directed him to add N11 billion to the budget to kick-start the project. “Yes, my Lord.

The former president mentioned it at the FEC meeting,” Babangida added, noting that details of the prior day’s discussion were not fully disclosed.

He further explained that the federal government could have contributed $1.5 billion, representing 25% equity in the $6 billion project under a build, operate, and transfer arrangement.

After the FEC supported Agunloye’s memorandum on May 22, 2003, some members, including then Vice-President Atiku Abubakar, suggested reviewing the government’s 25% participation.

Babangida said the FEC directed Agunloye to withdraw the memorandum to engage investors and explore options to reduce federal equity participation, which could range from zero to 25%.

In a letter of award to Sunrise Power and Transmission Company Limited (SPTCL), Agunloye indicated that eventual equity participation would vary from zero to no more than 10%.

The witness noted that while the letter suggested a reduction in government participation, he did not provide details of what transpired afterwards.

Justice Onwuegbuzie adjourned the case until February 2 for further cross-examination of the witness.