Olu Agunloye Reduced Federal Govt’s Equity in Mambilla Project by $900 Million

Olu Agunloye Reduced Federal Govt’s Equity in Mambilla Project by $900 Million

Abuja – A witness for the Economic and Financial Crimes Commission (EFCC), Umar Babangida, told an Abuja High Court on Monday that former Olu Agunloye, while serving as Minister of Power and Steel, unilaterally reduced the Federal Government’s equity participation in the Mambilla Hydroelectric Power Project by approximately $900 million.

Babangida, an Assistant Commissioner of Police and EFCC investigator, made the disclosure during the trial of Agunloye, who is facing charges including disobedience to a presidential directive, conspiracy, forgery, and receiving gratification before Justice Jude Onwuegbuzie at the High Court in Apo, Abuja.

The witness told the court that the reduction of Nigeria’s stake in the project was done without the approval of then-President Olusegun Obasanjo. He explained that the Federal Government’s original recommended equity was 25 percent, equivalent to $1.5 billion, but in 2003, Agunloye awarded a contract to Sunrise Power and Transmission Company Limited (SPTCL) that effectively reduced the government’s stake to between zero and 10 percent. Babangida noted that 10 percent of the $6 billion estimated project cost amounted to $600 million, well below the initial $1.5 billion recommendation. When asked whether this reduction saved the government $900 million, the witness rejected the suggestion, describing the cut as unauthorized and irregular.

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The EFCC also alleged that Agunloye received N5.212 million through his Guaranty Trust Bank account from Jide Sotirin, acting on instructions from Leno Adesanya, in connection with the approval for the Mambilla Hydroelectric Power Project contract. The anti-graft agency claims that Agunloye conspired with Adesanya to forge a letter titled: “Construction of 3,960MW Mambilla Hydroelectric Power Station on a Build, Operate and Transfer basis.” During cross-examination by Agunloye’s lawyer, Adeola Adedipe (SAN), Babangida testified that the payment was made 16 years after Agunloye left office. While the former minister claimed the funds were for a medical procedure, the witness said a review of the account suggested otherwise. Babangida added that Agunloye subsequently transferred the money to other individuals, though none of the recipients were interviewed by investigators.

Babangida also confirmed that a questionnaire sent to former President Obasanjo by Federal Government lawyers had been admitted as evidence (Exhibit EFCC3 O). He further noted that Agunloye advised EFCC investigators to summon participants of the May 21, 2003 Federal Executive Council (FEC) meeting to provide further clarity on the contract approval process. The witness added that Sotirin told investigators he acted on Adesanya’s instruction, but did not explicitly state that the payment was gratification.

The Mambilla Hydroelectric Power Project, located in Taraba State, is one of Nigeria’s largest planned power generation schemes, with a projected capacity of 3,960 megawatts. The multi-billion-dollar project has faced decades of delays, funding disputes, legal battles, and controversies over contract awards, making it a focal point in Nigeria’s energy sector.

Following the testimony, Justice Onwuegbuzie adjourned the trial until March 30 for continuation, as the court continues to examine evidence and testimonies surrounding the alleged unauthorized reduction of government equity and associated charges against Agunloye.

Olu Agunloye Reduced Federal Govt’s Equity in Mambilla Project by $900 Million