An Economic and Financial Crimes Commission (EFCC) investigator testified today in the Federal High Court, Apo, Abuja, that former President Olusegun Obasanjo directed former Minister of Power and Steel, Dr. Olu Agunloye, to add ₦11 billion to the ₦6 billion already appropriated in the 2003 federal budget for the Mambilla Hydroelectric Power Project.
Assistant Commissioner of Police Umar Babangida, serving as the third prosecution witness (PW3) in the ongoing trial of Dr. Agunloye before Justice Jude Onwuegbuzie, made the disclosure during continued cross-examination.
According to the witness, the instruction was issued during a private meeting between Obasanjo and Agunloye on the night of May 20, 2003, ahead of a Federal Executive Council (FEC) meeting. Obasanjo later referenced the directive at the council meeting, though full details of the prior discussion were not elaborated there.
The Mambilla project, a proposed 3,960 MW hydroelectric power station to be executed on a Build, Operate, and Transfer (BOT) basis by Sunrise Power & Transmission Company Limited (SPTCL), had been in planning since feasibility studies began in 1981, spanning over two decades.
Seven companies were screened for the project, and the federal government initially considered 25% equity participation (potentially around $1.5 billion of the estimated $6 billion total project cost).
Following the FEC meeting around May 21–22, 2003, Vice President Atiku Abubakar and another minister recommended further review of equity terms, leading the council to direct withdrawal of the memorandum for negotiations aimed at reducing government equity participation (reportedly to zero to 10% in the award letter issued to SPTCL on May 22, 2003).
Dr. Agunloye is facing an amended seven-count charge filed by the EFCC, including allegations of disobedience to presidential directives, conspiracy, forgery, and receiving gratification.
He is accused of conspiring with Leno Adesayan of SPTCL to forge a letter titled “Construction of 3,960MW Mambilla Hydroelectric Power Station on a build, operate and transfer basis.” Agunloye has pleaded not guilty to all charges.
The testimony forms part of the prosecution’s case regarding the project’s budget handling, contract award processes, and related decisions during Obasanjo’s administration.
The case was adjourned to February 2, 2026, for continuation of the cross-examination of the witness.