Fifty-two years after its initial conception in 1972 as a 3,050 MW hydroelectric facility aimed at achieving Nigeria’s ambitious goal of 23,000 MW installed capacity by 2023, the Mambilla Hydroelectric Power Project in Taraba State has devolved into a complex web of international arbitration and domestic legal battles.
The project’s tortuous journey now centres on two key areas: an international arbitration in Paris, France, involving former Presidents Olusegun Obasanjo and Muhammadu Buhari, and a domestic legal prosecution by the Economic and Financial Crimes Commission (EFCC) targeting two former Ministers of Power – Olu Agunloye (2002-2003) and Saleh Mamman (2019-2021).
Okechukwu Nwanguma, Executive Director of the Rule of Law and Accountability Advocacy Centre (RULAAC), emphasized the significance of the former president’s testimony, stating that their appearance before the Paris court underscores the critical need for scrutiny of major infrastructural projects in Nigeria and their profound implications for governance and accountability.
The project’s troubled history reflects broader challenges in Nigeria’s energy sector. The World Bank estimates that Nigerian businesses lose $29 billion annually due to unreliable electricity, with an electricity deficit of approximately 40% nationwide and 73% of the rural population off the national grid.
Despite initial hopes, Nigeria currently maintains only 12,000 installed power generating capacity, with a mere 5,000 MW output. This is managed by inefficient generation companies plagued by decayed infrastructure and frequent vandalism, leading to regular grid collapses and blackouts.
The Mambilla project’s current legal entanglements stem from a $6 billion contract initially awarded to Sunrise Power and Transmission Company Limited in May 2003 during Obasanjo’s administration. The company alleges a breach of contract and is seeking $2.3 billion in compensation for financial and legal consultancy expenses.
The arbitration proceedings have revealed a complex narrative of conflicting claims, with Obasanjo denying contract approval and Agunloye insisting on presidential backing. The project was subsequently re-awarded to Chinese companies in 2017, leading Sunrise Power to initiate international arbitration.
The EFCC has also entered the fray, bringing serious allegations against key figures. Agunloye faces seven charges of official corruption and fraudulent contract award, while Mamman is confronting a 12-count charge of conspiracy to commit money laundering totalling N33.8 billion.
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Interestingly, during the recent Paris arbitration proceedings, while Nigerian government witnesses including Obasanjo, Buhari, and former ministers testified, Sunrise Power’s listed witnesses notably failed to appear, potentially weakening their case.
As the legal battles continue, the Mambilla Hydroelectric Power Project remains a stark illustration of Nigeria’s ongoing challenges in infrastructure development, energy sector management, and institutional accountability.
Seunmanuel Faleye is a brand and communications strategist. He is a covert writer and an overt creative head. He publishes Apple’s Bite International Magazine.
