Former Minister of Power and Steel, Olu Agunloye, has accused ex-President Olusegun Obasanjo of spreading falsehoods to obscure his involvement in the $6 billion Mambilla Hydroelectric Power Project. Agunloye, who served as minister under Obasanjo between 2002 and 2003, alleged that the former president deliberately distorted facts about the project to shield himself from scrutiny.
Agunloye who is currently facing a seven-count charge of fraud brought by the Federal Government in relation to the project made these claims in a statement released on Friday. The former minister, now the National Secretary of the Social Democratic Party (SDP), stated that Obasanjo had “feigned ignorance” about the Build-Operate-Transfer (BOT) contract signed during his administration.
Dispute Over the BOT Contract
Agunloye criticized Obasanjo for allegedly misrepresenting the BOT contract’s details in both public and judicial settings which he stated were to deflect blame and scrutiny over the controversies surrounding the project.
He also suggested that his legal troubles stem from longstanding personal conflicts involving Obasanjo, former Vice President Atiku Abubakar, and Leno Adesanya, the owner of Sunrise Power Company, a key stakeholder in the Mambilla project.
Background on the Mambilla Hydroelectric Power Project
The Mambilla Hydroelectric Power Project is one of Nigeria’s most ambitious energy infrastructure projects, envisioned to generate 3,050 megawatts of electricity. First conceived in the 1980s, the project faced multiple delays due to funding issues, contractual disputes, and political interference.
A significant turning point occurred during former President Olusegun Obasanjo’s administration (1999–2007), when a Build-Operate-Transfer (BOT) contract was signed with Sunrise Power and Transmission Company Limited (Sunrise) to execute the project.
However, subsequent administrations altered or bypassed agreements, leading to protracted legal disputes, including international arbitration proceedings in France.
Agunloye’s Perspective on the Legal Challenges
Agunloye argued that the government is using him as a scapegoat to divert attention from the actions of successive administrations and former presidents who have managed the project over two decades. He said, “The government seeks to use me as a scapegoat to portray systemic corruption to the arbitration panel and undermine Sunrise’s claims.”
He further elaborated that the ongoing arbitration in France arose due to decisions made under President Muhammadu Buhari’s administration. Specifically, he criticized the 2017 decision by then-Minister of Power, Babatunde Fashola, to bypass a 2012 agreement with Sunrise, which had been signed under President Goodluck Jonathan. Instead, the contract was awarded to another company, leading to further disputes.
The Role of Successive Administrations
Agunloye noted that despite advice from the Chinese government to resolve the dispute amicably, the Federal Government failed to honor two settlement agreements. This failure ultimately prompted Sunrise to return to arbitration, further complicating the project’s progress.
He accused the government of spreading misinformation and manipulating the narrative to protect its officials and the administrations of four former presidents who were involved in the project.
Conclusion
The accusations from Olu Agunloye against Olusegun Obasanjo highlight the complex and contentious history of the Mambilla Hydroelectric Power Project. With allegations of corruption, mismanagement, and personal vendettas spanning multiple administrations, the project has become a focal point of political and legal disputes. Agunloye’s claims raise questions about the roles and responsibilities of successive governments, underscoring the need for transparency and accountability in addressing Nigeria’s power sector challenges.
