The Economic and Financial Crimes Commission (EFCC) has re-arraigned former Minister of Power and Steel Development, Olu Agunloye, over alleged fraudulent contract awards and official corruption linked to the $6 billion Mambilla Hydroelectric Power Project.
Agunloye, who served during the administration of former President Olusegun Obasanjo, was brought before Justice J.O. Onwuegbuzie of the Federal Capital Territory (FCT) High Court in Apo, Abuja, on Monday, February 3, 2025.
The EFCC’s amended seven-count charge accuses the former minister of illegally awarding a contract to Sunrise Power and Transmission Company Limited (SPTCL) in May 2003 without budgetary approval, cash backing, or presidential consent.
A Case of Disobedience and Forgery?
According to the charges read in court, Agunloye allegedly disregarded directives from then-President Obasanjo and unilaterally approved the controversial Mambilla contract on a Build, Operate, and Transfer (BOT) basis.
One of the charges states:
“That you, Olu Agunloye, whilst being the Minister of Power and Steel on or about the 22nd of May, 2003 in Abuja, awarded a contract titled ‘CONSTRUCTION OF 3,960MW MAMBILLA HYDROELECTRIC POWER STATION ON BUILD, OPERATE AND TRANSFER BASIS’ to Sunrise Power and Transmission Company Limited without any budgetary provision, approval, and cash backing, thereby committing an offence contrary to and punishable under Section 22(4) of the Corrupt Practices and Other Related Offences Act, 2000.”
Another count alleges that Agunloye deliberately disobeyed an executive directive issued during a Federal Executive Council (FEC) meeting on May 21, 2003.
“That you, Olu Agunloye, whilst being the Minister of Power and Steel on or about the 22nd of May, 2003 in Abuja, within the jurisdiction of this Honourable Court, knowingly disobeyed the directive of the President made at the Federal Executive Council meeting of the 21st May, 2003, directed at you pursuant to the President’s powers under Section 5(1)(a) of the 1999 Constitution.”
In addition to defying a presidential order, the EFCC alleges that Agunloye, alongside Leno Adesanya, the chairman of Sunrise Power (who is reportedly at large), engaged in forgery by producing a false contract document to deceive the Nigerian government.
The charge states:
“That you, Olu Agunloye (former Minister of Power and Steel) and Leno Adesanya (at large), on or about the 22nd of May, 2003 in Abuja, with intent to cause the Federal Republic of Nigeria to enter into a contract with Sunrise Power and Transmission Company Limited, made a false document titled ‘CONSTRUCTION OF 3,960MW MAMBILLA HYDROELECTRIC POWER STATION ON BUILD, OPERATE AND TRANSFER BASIS’ and thereby committed forgery contrary to and punishable under Sections 363 and 364 of the Penal Code.”
Agunloye Denies Allegations
The former minister pleaded not guilty to all charges when they were read to him in court.
His legal team has maintained that he acted within his ministerial duties and denies any wrongdoing. Agunloye had previously filed a lawsuit against the EFCC, seeking N1 billion in damages after being declared wanted by the commission in 2023.
His trial has attracted attention from prominent Nigerians, including Nobel Laureate Wole Soyinka, who recently raised concerns about his safety in Kuje Prison, where he was detained before securing bail.
A Long-Running Controversy
The Mambilla Hydroelectric Power Project, located in Taraba State, has been plagued by disputes and delays for over two decades. It was envisioned as Nigeria’s largest hydropower plant, meant to generate 3,960 megawatts of electricity and boost the nation’s energy supply.
However, the project has been entangled in legal battles, with Sunrise Power laying claims to the contract, leading to multiple arbitration cases against Nigeria. The federal government has denied liability, alleging that the contract was fraudulently awarded without due process.
In 2017, the Buhari administration signed a fresh agreement with a consortium of Chinese firms to execute the project. But litigation from Sunrise Power has stalled progress, with the company demanding billions of dollars in compensation.
The EFCC’s pursuit of Agunloye is seen as part of efforts to resolve the long-standing contract dispute, which continues to cast a shadow over Nigeria’s energy ambitions.
Next Steps in the Trial
Justice Onwuegbuzie adjourned the case to February 24, 2025, for continuation of trial.
Legal experts suggest that the trial’s outcome could have significant implications, not just for Agunloye but also for Nigeria’s ongoing legal wranglings over the Mambilla project.
The EFCC has vowed to prosecute the case to its logical conclusion, signaling that other individuals linked to the contract scandal may also face trial in the coming months.
