Mambilla: How Agunloye’s Deal Sparked 23-Year Battle

For a country battling inadequate electricity supply and struggling to attract the massive capital required to expand generation, Nigeria’s victory in the long-running Mambilla arbitration case may represent more than the end of a costly legal dispute. With the International Chamber of Commerce tribunal in Paris dismissing Sunrise Power’s multibillion-dollar claims, attention is now shifting to whether the legal breakthrough can finally clear the way for one of Nigeria’s biggest hydro power ambitions.  Weekend Trust looks at the genesis of the crisis. 

Nigeria breathed a sigh of relief following last week’s ruling in favour of the country in the arbitration brought by Sunrise Power and Transmission Company Limited over the Mambilla Hydroelectric Power Project in Taraba State.

The case which was brought by the International Chamber of Commerce tribunal in Paris rejected the claims by Sunrise as the company had sought $680 million from Nigeria as a settlement sum and interest in relation to a separate arbitration in which it is claiming more than $2.7 billion in compensation and interest over disputes surrounding the project.

The case had two antagonists against Nigeria with the first being Dr. Olu Agunloye and Leno Adesanya.

The former was a Minister of Power in 2003, when the contract for the award of the project was given to the company of the latter.

While the case was between Nigeria and Sunrise, a former Minister of Power, Works and Housing, Babatunde Fashola, in 2017 had described Sunrise Power as a middleman.

How it started

The whole controversy started on May 21, 2003, when the Federal Executive Council (FEC), chaired by former President Olusegun Obasanjo considered a memo for the issuance of the Mambilla contract to Leno Adesanya and his company.

The request was rejected asking that the memo be withdrawn while noting that the establishment of new power plants must be done through a competitive process.

Despite this, on May 22, 2003, seven days before the end of President Obasanjo’s first term, Olu Agunloye, who was then Minister of Power and Steel, sent Adesanya a letter purporting to indicate a preliminary approval for Sunrise to have a role in the construction of the Mambilla Hydroelectric Power Station with a value of $6 billion.

But the company was documented as not having any prior expertise on such projects or any real assets and statements filed with the Corporate Affairs Commission (CAC) by Sunrise showed that the company had no turnover in 2017, 2018, or 2019 and had total net declared assets of only N1,000,000 (one million Naira).

At the time it received the award, the company’s financial position was N318,685 on  December 3, 2004 and N270,370 as of December 31, 2005.

Weekend Trust gathered that a new minister wrote to Leno Adesanya of Sunrise on September 30,2003, to state that the FEC had not given approval and as such it had no contract whatsoever with the government.

What Obasanjo said about Agunloye’s role in Mambilla Sunrise project

Former President Olusegun Obasanjo, in an interview granted to the TheCable in 2023, challenged Agunloye on how he got the prerogative to award the contract to Sunrise in 2003.

“When I was president, no minister had the power to approve more than N25 million without express presidential consent. It was impossible for Agunloye to commit my government to a $6 billion project without my permission and I did not give him any permission.

“If a commission of inquiry is set up today to investigate the matter, I am ready to testify. I do not even need to testify because all the records are there. I never approved it.

“When he presented his memo to the federal executive council (on May 21, 2003), I was surprised because he had previously discussed it with me and I had told him to jettison the idea, that I had other ideas on how the power sector would be restructured and funded.

“I told him as much at the council meeting and directed him to step down the memo. I find it surprising that Agunloye is now claiming he acted on behalf of Nigeria. If I knew he issued such a letter to Sunrise, I would have sacked him as minister during my second term. He would not have spent a day longer in office,” the former president said.

Reacting to Obasanjo’s claims then, Agunloye had said the government was not compelled to pay any amount to Sunrise under the Build, Operate and Transfer (BOT) agreement.

He said the arrangement remained as it was to be fully funded by the newly registered company, whose declared assets were worth less than $2,000 at the time.

He described the project awarded to the Sunrise Power and Transmission Limited by the Obasanjo administration, “duly awarded in 2003 on a Build, Operate and Transfer basis to deliver Nigeria’s biggest power plant with a 3,050 megawatts capacity at no cost to the Nigerian government.”

He said after his exit from government as a minister in 2003, Obasanjo had changed his mind about the terms of the contract and decided that the Nigerian government should directly fund the project.

He added that the project was terminated in 2008 by President Umaru Musa Yar’adua due to alleged corruption on the part of officials who served under Obasanjo between 2003 and 2007.

“The former president was not correct when he referred to the award to Sunrise simply as a $6 billion contract (that is, N800 billion in 2003) under his watch. In truth, it was a Build, Operate and Transfer (BOT) contract in which the FGN did not need to pay any amount to the contractor, Messrs Sunrise Power and Transmission Company Limited (Sunrise).

“As a matter of fact, Sunrise has not been paid a single Naira or Dollar by the FGN from 2000 till date (14/9/23). Sunrise was to source for funds and execute the project with its own funds. The investment of Sunrise to construct the Mambilla hydroelectric project up to the completion stage to deliver electricity was adjudged at a maximum of $6 billion by four ministers of power and the former president (Chief Obasanjo) before I became minister of power. Sunrise was to recoup its investment from the sale of the generated electricity over a 30- to 40-year period at predetermined tariffs, also agreed with FGN before May 2003.”

EFFC’s case against Agunloye

In December 2023, the Economic and Financial Crimes Commission (EFCC) declared Agunloye wanted over allegations of fraud to the tune of $6 billion in the Mambilla hydropower contract.

The minister presented himself to the agency and it arraigned him before Justice Donatus Okorowo in January 2024, where he pleaded not guilty to the charges read against him.

He was later remanded in Kuje Prison pending the perfection of his bail conditions.

Thereafter, he was re-arraigned by EFCC before Justice Jude Onwuegbuzie of the Federal High Court sitting in Apo, Abuja, in September 2025.

Agunloye was arraigned over an amended seven-count charge on alleged fraudulent award of the Mambilla Hydroelectric Power Project contract worth $6 billion.

Count one reads: “That you, Olu Agunloye, whilst being the Minister of Power and Steel on or about the 2nd of May, 2003 in Abuja within the jurisdiction of this Honorable Court, knowingly disobeyed the directive of the President, made in the Federal Executive Council meeting of 21st May 2003, directed at you pursuant to the President’s powers under Section 5(1) (a) of the Constitution of the Federal Republic of Nigeria 1999 (as amended) when you signed a letter addressed to Sunrise Power and Transmission Company Limited, conveying the approval of the Government of the Federal Republic of Nigeria for the construction of the 3,960 megawatts Mambilla Hydroelectric Power Station and you thereby committed an offence contrary to and punishable under Section 123 of the Penal Code Law.”

Count four reads: “That you, Olu Agunloye whilst being the Minister of Power and Steel and Leno Adesanya (at large) of Sunrise [Power and Transmission Company Limited, on or about the 22nd of May, 2003 in Abuja within the jurisdiction of this Honourable Court, with intent to cause the Federal Republic of Nigeria (FRN) to enter into a contract with Sunrise Power and Transmission Company Limited (SPTCL) used as genuine, a false document titled, “Construction of 3,960mw Mambilla Hydroelectric Power Station on a Build, Operate and Transfer Basis,” dated the 22nd of May, 2003, and thereby committed an offence contrary to Section 366 and punishable under Section 364 of the Penal Code.”      Agunloye pleaded not guilty to all counts.

However, a counter suit he made against the EFCC over a publication by the agency  titled, “EFCC arraigns Agunloye over $6bn fraud” on its X account led to an award of N10m.

Justice Peter Kekemeke, in a judgement delivered in a N10bn suit instituted by Agunloye, held that the publication on the EFCC’s website and X handle portrayed him as a corrupt and fraudulent person and damaged his reputation.

Delivering judgement, Justice Kekemeke held that the publication contained all the ingredients of defamation, noting that it was in a permanent form and expressly identified Agunloye.

The judge also held that the EFCC’s sole witness, Assistant Commissioner of Police Umar Babangida, initially denied knowledge of the publication but later admitted during trial that it originated from the commission’s media department.

He further held that the suit did not challenge the statutory powers of the EFCC to investigate financial crimes.

Justice Kekemeke said, “Having gone through the charge in the criminal case against the claimant before an FCT High Court in Apo, there is nowhere in it that claimed fraud, contrary to the EFCC publication.

“The issue of fraud is not in any of the exhibits tendered before the court in the course of hearing the case. The EFCC failed to prove the truth in the said publication. That is not fair and does not represent the court’s proceedings.”

Reacting to the judgment, counsel for the EFCC, Dr Wahab Shittu (SAN), said the commission would challenge the decision at the Court of Appeal.

He said, “Though the court has made its pronouncement, the case is premature as the claimant’s criminal charge is yet to be concluded and judgement delivered.”

Weekend Trust was unable to get an official update on the status of the fraud case against Olu Agunloye, from the EFCC, but a source  within the commission said the matter was “progressing”.

“The case is progressing very smoothly. The matter is progressing very impressively. It is an ongoing matter that doesn’t warrant subjudice,” the source said.

Further checks showed that the matter came up in court on Monday, July 20, 2026 at the FCT High Court in Apo, Abuja., and has been adjourned till October 19, 2026.

Efforts to get comments from Dr Agunloye on the recent ruling also proved abortive. When our correspondent called him via phone, he asked that questions be sent to him via WhatsApp. That was done, but he did not respond to them until press time.

However, a former aide to ex-Minister of Power and Steel, Chief Olu Agunloye, has urged Nigerians to allow the courts to determine the allegations surrounding the Mambilla Power Project, insisting that no final judgement has been delivered against the former minister.

The former aide, who spoke to Daily Trust on condition of anonymity, said the allegation against Agunloye was that he awarded a contract for the Mambilla Hydropower Project to Sunrise Power and Transmission Company without full approval of the Federal Executive Council (FEC).

He noted that while the matter has generated public debate, particularly following recent developments in the Mambilla arbitration case, the criminal proceedings involving Agunloye are still pending before the court.

According to him, some materials relating to the case are in the custody of the Economic and Financial Crimes Commission (EFCC), which is prosecuting the matter.

The former aide recalled that Agunloye had consistently maintained his innocence and pleaded not guilty to the charges filed against him over the award of the contract.

“Before now, Agunloye has stated that he is not guilty of the allegations concerning the award of the Mambilla contract. The charges are still before the court and have not been concluded,” he said.

He stressed that under the law, Agunloye remains an accused person and is entitled to the presumption of innocence until a competent court delivers a final verdict.

Who is Agunloye?

Dr. Olu Agunloye, who hails from Owo in Ondo State, has held various positions in the country. He was appointed the pioneer Corps Marshal and Chief Executive of the Federal Road Safety Commission (now Federal Road Safety Corps) from 1988 to 1995.

After the return to civilian rule, Agunloye served as Personal Assistant to the then Minister of Power and Steel, Bola Ige (1999–2000). He was later appointed Minister of State for Defence (Navy) and subsequently Minister of Power and Steel in the cabinet of President Olusegun Obasanjo (around 2002–2003).  He also served as Executive Vice Chairman of National eGovernment Strategies.

Agunloye was previously a member of the Peoples Democratic Party (PDP) and the defunct Action Congress of Nigeria (ACN). In February 2016, he defected to the Social Democratic Party and emerged as the party’s candidate for the Ondo State governorship election. He is currently the National Secretary of the Social Democratic Party.

How and why Sunrise, Leno lost in Paris

Commenting on the recent judgement, a media adviser to former President Muhammadu Buhari, Garba Shehu, who was among those present at the January 15, 2025, sitting of the tribunal in Paris, said it was clear from day one that Adesanya and company would lose the case.

He said at the hearing, Presidents Olusegun Obasanjo and Muhammadu Buhari featured as strong pillars of the country’s defense against this  flagship scheme similar to the P & ID in using international arbitration to steal billions of dollars from the country  through fraud, deceit and lies.

“The two past presidents, alongside other key witnesses were prevailed upon by President Bola Ahmed Tinubu to rise to the occasion of defending the nation against fraudsters whose stock in trade was to bribe and get government contracts, only for them to use such projects to obtain huge sums of money as costs for settlement using arbitration. The team to Paris was led by the Minister of Justice and Attorney General of the Federation, Lateef Fagbemi, SAN.”

He said as far as credibility and reputation are concerned, Sunrise got the so-called “award” without any prior expertise on such projects or any real assets.

“Sunrise wahala began by demanding payment of (1) GBP 33 million as the costs that it had allegedly incurred in preparation for the execution of the project; and (2) USD 1.2 billion, which allegedly represented 20% of the USD 6 billion estimated cost of the project as projected profit.”

Giving a background on how the litigation started, he said Sunrise sought to prevent the Project from moving forward by taking the following steps: One, filing a claim at the Federal High Court against Nigeria’s Minister of Power, the Attorney-General of the Federation, CGGC, and CGC and two, they sought an order preventing any development of the project except through Sunrise and, in the alternative, claimed the sum of USD 960 million in alleged damages.

He said, “As a result of the Sunrise litigation, the project was held up for all these years. China Exim withheld funds – as would any lender – pending the resolution of the legal tussle. In order to move the project forward, Nigeria entered into settlement discussions with Sunrise, CGGC, and CGC.  The settlement discussions were inherited by the administration of President Buhari.

“In those discussions in 2012, the Federal Ministry of Power entered a ‘General Project Execution Agreement’ with Sunrise and Sinohydro (another Chinese contractor that Sunrise had involved) (the “GPEA”), an initial agreement with Sunrise relating to the Mambilla Project.

“On the 14th January, 2015, a letter was signed by the Federal Ministry of Power supposedly giving approval for Sunrise to be engaged as the local content partner on the project. On 9 November 2019, a meeting was held between, on the one hand, Sunrise, represented by Mr. Adesanya, and, on the other, Nigeria’s Attorney-General and Minister of Justice and the Minister of Water Resources in London.

“At that meeting, it was made clear to Mr. Adesanya / Sunrise that any settlement negotiated would, of course, depend on approval by the president. At this meeting, Mr. Adesanya offered to accept a figure of USD 500 million, and the Minister of Justice and the Minister of Water Resources – no doubt under pressure to settle the dispute so that the project could proceed – made a counter-proposal of USD 100 million (based on claims that they had incurred expenses between USD 70-80 million).

“After a series of meetings, the Attorney General and Minister of Justice and the Ministers of Power, Finance and Water Resource agreed to propose the sum of USD 200 million as a full and final settlement of Sunrise’s claims, subject, understandably to approval of the president. This proposal was accepted by Sunrise.

“On 25 March 2020, a second document entitled ‘Addendum to the Term[s] of Settlement’ was signed between Sunrise and representative of Nigeria.  Again, the document provides for a potential doubling of Nigeria’s liability by another USD 200 million in case of delayed payment.

“On 31 March 2020, the ‘Terms of Settlement’ and ‘Addendum to the Term of Settlement’ were presented to President Buhari for the first time for his approval.  Upon reviewing the documents, the President decided not to grant approval.  In a hand-written and signed note dated 20 April 2020, the President withheld his approval for entry into these documents, on the basis that “FG [the Federal Government] hasn’t got USD 200m to pay [Sunrise]”.

He said despite repeated attempts, President Buhari wasn’t convinced that Nigeria should pay USD 200 million, or even higher to someone who did nothing but merely presented an unauthorized contract document.

“From here, Sunrise commenced another arbitration against Nigeria alleging a violation of the terms of settlement, at which it asked to be paid USD 680 million. President Tinubu welcomed the tribunal verdict as the removal of the biggest legal hurdle in the path of the 3,960MW Mambilla power project, describing it as an affirmation of Nigeria’s determination not to succumb to the “predatory and exploitative claims by local and international entities and their enablers and funders.”

Lawyers speak

Barr Hameed Ajibola Jimoh said the judgement should be treated as a basis for investigation rather than as an investigation report or proof of wrongdoing.

He said the foreign court’s decision could serve as a “hint” to the appropriate Nigerian prosecuting authority that a crime might have been committed in the contractual transaction and therefore requires investigation.

“Whatever the report of investigation is will guide the next plan of action,” he said.

Jimoh also cited Section 36(5) of the 1999 Constitution, which provides for the presumption of innocence, stressing that a suspect remains innocent until proven guilty by a court of law.

He said the principle was also recognised under international human rights law.

Also speaking, an Abuja-based legal practitioner, Barrister Abdurrahman Salis, said the finding by the arbitral tribunal that the federal government did not award the Mambilla project to Sunrise raised questions about how the company came to believe that it had been awarded the project.

“The finding by the Arbitral Tribunal that the federal government of Nigeria did not award the Mambilla project to Sunrise raises a vital question: if the government never made such an award, who told Sunrise that it had?” he said.

“The significance of the decision, therefore, goes beyond the contractual dispute. If the government never awarded the project, the next question is not merely whether Sunrise had a valid contract, but how Sunrise came to believe that it did, and whether the person who created that belief should, on the evidence available, be held legally accountable,” he said.

‘What the victory means to Nigeria’

Olabode Opeseitan, who has written extensively on the Mambillla power project, said he once believed Sunrise had an arguable case, but the testimonies of former Presidents Olusegun Obasanjo and the late Muhammadu Buhari were decisive because the two former leaders testified that the original 2003 contract lacked proper authorisation.

Odusola-Stevenson said the verdict removes what President Tinubu described as the single biggest legal obstacle but the original $5.792 billion financing which was structured as 85 to 15 with 85 per cent from Chinese lenders mainly China Exim Bank and 15 per cent counterpart funding from Nigeria can no longer be assumed.

He hinted that the federal government had already moved from the original 3,050MW to a more bankable 1,500MW configuration.

He stated that freezing that scope is critical because Nigeria needs delivered megawatts not impressive numbers on presentation slides.

According to him, fresh hindrances could still frustrate Mambilla after Paris because financing will require a fresh bankability assessment with updated costs and risk allocation.

He added that transmission must be treated as central because there is no value in producing 1,500MW if the national grid cannot reliably evacuate and distribute it.

Odusola-Stevenson advocated the need for a Mambilla Delivery Clock where Nigeria tells citizens and investors and the international market what the financing date is and what the EPC award date is and what the construction date is and what the transmission completion date is.

Rasheed Adeleke, an energy expert, puts it succinctly: “Beyond the jubilation lies a more urgent question of whether Nigeria can now turn a legal victory into electricity.” (Daily trust)