Former Minister Olu Agunloye Allegedly Ignored Presidential Directive in Awarding $6 Billion Mambilla Power Project Contract, EFCC Witness Testifies

On Thursday, 9th, October 2025, the trial of former Minister of Power and Steel, Dr. Olu Agunloye, resumed at the Federal Capital Territory High Court in Abuja with an Economic and Financial Crimes Commission (EFCC) witness alleging that Agunloye defied a directive from former President Olusegun Obasanjo concerning the controversial $6 billion Mambilla Hydroelectric Power Station contract.

Testifying before the court Assistant Commissioner of Police (ACP) Umar Babangida, the third prosecution witness, told the court that during a Federal Executive Council (FEC) meeting held on May 21, 2003, presided over by President Obasanjo, a resolution was passed instructing the Ministry of Power and Steel not to award the contract to Sunrise Power and Transmission Company Limited.

However, the witness asserted, Agunloye disregarded this directive and proceeded to issue an approval letter in favor of the company. When cross-examined by Agunloye’s defense lawyer, Adeola Adedipe, SAN, Babangida admitted that the minutes of the FEC meeting did not contain an explicit presidential directive. Nonetheless, he maintained that the minister’s actions amounted to a violation of presidential authority and due process.

He denied all the allegations and pleaded not guilty to all charges, which include official corruption and unlawful award of the contract without proper authorization. During proceedings, the defense requested that the court allow the reading of parts of Agunloye’s extrajudicial statement, in which the ex-minister maintained that he had no prior relationship or dealings with Leno Adesanya, the principal behind Sunrise Power, until 2014, when he was asked the question.

The presiding judge Jude Onwuegbuzie adjourned the case until November 3, 2025, for further cross-examination and continuation of the trial.The Mambilla Hydroelectric Power Project, with a planned capacity of 3,960 megawatts in Taraba State, has for years been embroiled in allegations of irregularities, corruption, and mismanagement, significantly delaying its completion.

This ongoing trial forms part of broader efforts by the EFCC to address corruption in major infrastructure projects critical to Nigeria’s power sector development.

Do you have a story to share? Want to advertise with us? Or perhaps you need publicity for a product, service, or event?

We’d love to hear from you through 08160810795 or thelegalobserver123@gmail.com. Thank you!

Scroll to Top