By Nkechi Eze
The trial of former Minister of Power and Steel Development, Dr. Olu Agunloye, took a new turn on Monday, June 16, 2025, as the third prosecution witness, Umar Babangida, told a Federal Capital Territory High Court in Apo that former President Olusegun Obasanjo and the Federal Executive Council (FEC) never approved the controversial contract awarded to Sunrise Power and Transmission Company Limited for the Mambilla Power Project.
A official signed statement by the commission’s spokesperson Dele Oyewale reads: Testifying before Justice J.O. Onwuegbuzie, Babangida, an investigator with the Economic and Financial Crimes Commission (EFCC), disclosed that contrary to Agunloye’s claims, the contract award lacked presidential or FEC authorization. He revealed that former President Obasanjo had clarified this position in a letter dated November 27, 2023, addressed to the Attorney General of the Federation, in which he confirmed that neither he nor the council gave the green light for the deal.
According to Babangida, Obasanjo stated that while he received a memo from Agunloye concerning the Mambilla Project and instructed him to present it before the FEC for deliberation, no approval was granted. In fact, the FEC reportedly directed the minister to withdraw the proposal altogether.
The EFCC investigator further told the court that the former president reiterated this stance in person during a meeting with investigators on February 7, 2024, and even documented it in writing. Obasanjo made it clear that the minister’s decision to award the contract on May 22, 2003 just 24 hours after being told to withdraw the proposal was not backed by the presidency or any official mandate.
Despite being directed to cancel the Memorandum of Understanding (MoU) he had signed with Sunrise Power and to reopen the bidding process for the Mambilla Hydropower Project, Agunloye went ahead with the contract award in defiance of federal instructions, Babangida said.
Agunloye is currently standing trial on a seven-count charge filed by the EFCC, involving alleged fraudulent contract award and official corruption amounting to $6 billion.
Further revelations by the witness indicated that Agunloye received substantial financial transfers from Shotire Jide Abiodun, a director in Sunrise Power and Transmission Company and personal assistant to the company’s owner, Leno Laitan Adesanya. Financial records reviewed by the EFCC showed payments into Agunloye’s Guaranty Trust Bank account, including N3.6 million on August 10, 2019, N500,000 on October 22, 2019, and N1.1 million on November 13, 2019 all traced to Abiodun.
The prosecution counsel, Abba Muhammed, SAN, led Babangida through the testimony, which further established financial links between the defendant and officials of Sunrise Power.
Justice Onwuegbuzie adjourned proceedings to June 18, 2025, for the continuation of the trial.
