A prosecution witness on Monday told the Federal Capital Territory High Court, Apo, Abuja, that former President Olusegun Obasanjo and the Federal Executive Council (FEC) did not approve the controversial $6 billion Mambilla Hydropower contract awarded to Sunrise Power and Transmission Company Limited in 2003.
Testifying before trial judge Jude Onwuegbuzie, the witness, Umar Babangida, who is an investigator with the Economic and Financial Crimes Commission (EFCC), said the former president confirmed in writing that he neither approved nor authorised the award of the contract by the then Minister of Power and Steel, Olu Agunloye.
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EFCC is prosecuting Mr Agunloye on amended seven counts of forgery, disobeying presidential directive and gratification.
The EFCC alleged that Mr Agunloye awarded the contract for the Mambilla power project on 22 May 2003 to Sunrise Power and Transmission Company Limited without any budgetary provision, approval and cash backing.
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The commission also alleged that the former minister received N5.212 million from Sunrise Power and Transmission Company Limited (SPTCL) and Leno Adesanya, through Jide Abiodun Sotinrin.
It added that this was done through Mr Agunloye’s Guaranty Trust Bank account, for conveying the federal government’s approval for the construction of the Mambilla Hydroelectric Power Station in favour of SPTCL while serving as minister.
The former minister has pleaded not guilty to all seven counts.
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Testifying on Monday, EFCC investigator, Mr Babangida, said, “The former President, Chief Olusegun Obasanjo, who presided over the FEC (Federal Executive Council) meeting of 21 May 2003, wrote to the Attorney General of the Federation on 27 November 2023, explaining that he did not approve the award of the contract to Sunrise Power. He stated that he only directed the Minister to submit the memorandum to FEC for deliberation and that the FEC asked the Minister to withdraw the proposal.”
A statement by the EFCC’s spokesperson Dele Oyewale on Monday, said Mr Babangida added that in a follow-up meeting with EFCC investigators on 7 February 2024, Mr Obasanjo reiterated that he did not grant approval and that the contract award letter issued by Mr Agunloye on 22 May 2003, was not sanctioned by either him or the FEC.
The EFCC witness said despite a presidential directive to open the Mambilla project for competitive bidding, Mr Agunloye awarded the contract to Sunrise Power within 24 hours.
“The minister was directed to withdraw his memorandum and invite more investors. But on 22 May 2003, just a day after the FEC meeting, he awarded the contract without presidential or FEC approval,” Mr Babangida told the court.
Mr Babangida further testified that EFCC investigations revealed money transfers from Sunrise Power to Mr Agunloye years after he left office.
“We reviewed the defendant’s financial records and discovered that he received N3.6 million on August 10, 2019, N500,000 on October 22, 2019, and N1.1 million on November 13, 2019—all from Shotire Jide Abiodun, a personal assistant to Sunrise Power’s owner, Leno Adesanya,” the witness said.
He added that Mr Abiodun, who made the transfers, is also a director in Sunrise Power.
Mr Onwuegbuzie adjourned further hearing till 18 June.
Background
In January 2024, the EFCC arraigned Mr Agunloye, 75, over the failed Mambilla Hydropower project.
The anti-graft agency accused him of awarding a 3,960MW Build, Operate and Transfer (BOT) contract to Sunrise Power in May 2003 without budgetary provision, presidential approval, or cash backing.
In February 2025, the EFCC re-arraigned him on an amended seven-count charge, including forgery, gratification, and disobedience to lawful presidential directive.
One of the counts alleges that Mr Agunloye received a total of N5.212 million from Sunrise Power and its promoter, Mr Adesanya, through Jide Abiodun’s account with Guaranty Trust Bank.
Mr Agunloye has denied all the charges.
During cross-examination of the second prosecution witness, Adewale Agunbiade—a former GTBank compliance officer now with Jaiz Bank—the defence challenged the legality of his testimony, noting that neither his current employer nor the EFCC served him an official witness summons.
Mr Agunbiade admitted he did not present a valid staff ID from Jaiz Bank and testified at the EFCC’s insistence because he had handled the relevant account documents while at GTBank.
Mr Onwuegbuzie earlier remanded Mr Agunloye in Kuje Correctional Centre, pending the hearing of his bail application.
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