Obasanjo Ordered N11bn Boost for Mambilla Project, Witness Reveals

A prosecution witness in the ongoing trial of former Power Minister Olu Agunloye testified that ex-President Olusegun Obasanjo instructed him to inflate the Mambilla Hydroelectric Power Project’s budget by N11 billion in 2003. Umar Babangida, an EFCC investigator and Assistant Commissioner of Police, made this revelation during cross-examination at the FCT High Court in Abuja. The directive came during a private late-night meeting on May 20, 2003, ahead of a Federal Executive Council (FEC) session, boosting the approved N6 billion to N17 billion total. 

Trial Background

Agunloye faces an amended seven-count charge from the EFCC, including conspiracy, forgery, and receiving gratification over the alleged fraudulent award of a $6 billion contract to Sunrise Power and Transmission Company Limited (SPTCL) in 2003. The project, aimed at generating 3,050MW on a build-operate-transfer basis, originated from feasibility studies in 1981 but remains unbuilt despite decades of delays and disputes. Babangida noted Obasanjo’s strong push to launch the initiative, with seven companies screened beforehand. 

Key Testimony Details

Babangida detailed Obasanjo’s May 20 meeting with Agunloye, where the president ordered the budget addition to kick-start the project. The witness confirmed Obasanjo referenced this at the subsequent FEC meeting on May 21, though without full prior discussion details. Agunloye’s May 22 memorandum proposed 25% government equity ($1.5 billion share), but FEC—including Vice-President Atiku Abubakar—raised concerns, directing withdrawal for negotiations to lower it to zero-25%. 

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FEC Directives and Outcomes

The court heard FEC instructed Agunloye to renegotiate for reduced equity, yet he issued a letter to SPTCL capping it at 0-10%, which Babangida said deviated from instructions. Obasanjo has previously denied FEC approval of the contract and testified in related French arbitration. EFCC investigators interviewed Obasanjo, who expressed willingness to testify further. The trial, before Justice Jude Onwuegbuzie, resumes February 2, 2026, for continued cross-examination.