Mambilla: How Obasanjo government inflated power project cost by N11bn — EFCC witness

By Kunle Sanni –

A prosecution witness on Wednesday told a Federal High Court in Abuja that the administration of former President Olusegun Obasanjo approved an additional N11 billion for the Mambilla Hydroelectric Power Project, raising its initial allocation from N6 billion in 2003.

The witness, Assistant Commissioner of Police (ACP) Umar Hussein Babangida, gave the testimony during the trial of a former Minister of Power and Steel, Dr. Olu Agunloye, who is being prosecuted by the Economic and Financial Crimes Commission (EFCC).

Agunloye is standing trial before Justice Jude Onwuegbuzie at the Apo Division of the Federal High Court on an amended seven-count charge bordering on disobedience to presidential directive, conspiracy, forgery, and receipt of gratification.

Led in evidence as Prosecution Witness Three (PW3), Babangida told the court that investigations revealed that President Obasanjo personally directed Agunloye to add N11 billion to the N6 billion already appropriated for the take-off of the Mambilla project.

According to the witness, the directive was issued during a private night meeting between Obasanjo and Agunloye on May 20, 2003, a day before the matter was discussed at the Federal Executive Council (FEC) meeting on May 21, 2003.

Babangida said the former president later mentioned the additional cost at the FEC meeting, although the details of the private discussion held the previous day were not fully disclosed to council members.

He explained that Obasanjo was keen on kick-starting the long-delayed project, noting that it took about 23 years—from the completion of feasibility studies in 1981 to 2003—for the project to reach the contract award stage. He added that seven companies initially expressed interest and were screened for the project.

The EFCC witness further told the court that the Mambilla project was valued at $6 billion under a Build, Operate, and Transfer (BOT) arrangement, with the Federal Government expected to contribute 25 per cent equity, amounting to about $1.5 billion.