Abuja, Nigeria – Former President Olusegun Obasanjo has responded to the contentious $6 billion contract awarded to Sunrise Power and Transmission Ltd in connection with the Mambilla Hydropower Project in 2003 by Olu Agunloye, the former Minister of Power and Steel. The former President, in an interview with The Cable, disputed authorizing Agunloye to commit Nigeria to the contract and challenged the former minister to explain the source of his authority to award it.
Obasanjo clarified his stance, stating, “When I was president, no minister had the power to approve more than N25 million without express presidential consent. It was impossible for Agunloye to commit my government to a $6 billion project without my permission, and I did not give him any permission.”
He further expressed his readiness to testify if a commission of inquiry were to investigate the matter, asserting that all relevant records are available to confirm his position. Obasanjo made it clear that he did not endorse the contract and indicated his surprise when Agunloye presented it to the Federal Executive Council in May 2003, as he had previously advised against it, offering alternative ideas for restructuring and funding the power sector.
Obasanjo also mentioned that Leno Adesanya, the promoter of Sunrise Power, left Nigeria during his presidency and revealed that he had considered the possibility of arresting him had he remained in the country. He emphasized that he had significant concerns about Adesanya’s activities.
The dispute between Sunrise Power and the Nigerian government has escalated to arbitration at the International Chamber of Commerce (ICC) in Paris, with the company seeking compensation for alleged breaches of contract. In the first arbitration, Sunrise is requesting $2.3 billion in damages, claiming substantial expenditures on financial and legal consultants before the contract was abandoned. In the second arbitration, the company is pursuing a $400 million settlement based on terms agreed upon with the federal government in 2020 to resolve the dispute.
This development sheds light on the contentious circumstances surrounding the Mambilla Hydropower Project contract and the differing accounts of key individuals involved, including former President Olusegun Obasanjo and former Minister Olu Agunloye.