Former President Olusegun Obasanjo has disclosed his reasons for testifying in the ongoing arbitration proceedings over the Mambilla Power Project at the International Chamber of Commerce (ICC) in Paris, France. The case involves a $6 billion breach of contract claim by Sunrise Power against the Nigerian Government.
Speaking to Premium Times from Paris, Obasanjo clarified that his decision to testify was self-motivated and not influenced by President Bola Ahmed Tinubu or any other official. “I volunteered myself to testify in this case. Nobody sent me to do so. President Tinubu did not ask me to do so as speculated. I didn’t speak to anybody on my intention to testify,” he said.
Obasanjo explained that his decision stemmed from claims made by Olu Agunloye, a former Minister of Power, regarding the project. “I considered his claims atrocious and thought it necessary to set the records straight,” Obasanjo stated.
The arbitration centers on Sunrise Power, which alleges that it was awarded a Build-Operate-Transfer (BOT) contract for the Mambilla project by the Obasanjo administration in 2003 but claims the Nigerian Government later breached the agreement. The company is seeking $2.3 billion in compensation for its financial and legal expenditures.
Obasanjo and Agunloye have long been at odds over the project. Obasanjo has accused the former minister of mismanaging the initiative during his tenure, a claim Agunloye has dismissed as “baseless and malicious.” Agunloye maintains that the contract was awarded with Obasanjo’s approval and that Sunrise Power was selected following due process.
However, Obasanjo has consistently denied approving any such contract. He pointed to procedural lapses, stating that his directive for a comprehensive comparison of project proposals was never followed. “At no time was any contract awarded to Sunrise Power by anyone in my administration,” Obasanjo asserted.
The dispute has also highlighted allegations of fraud and corruption. The Nigerian government claims that irregularities marred the contract’s award and has accused unnamed public officials of wrongdoing.
The arbitration proceedings have drawn significant attention due to the potential financial and reputational implications for Nigeria. Sunrise Power claims that the government’s actions have caused it to incur substantial losses, while the government argues that the alleged contract lacked proper authorization.
Obasanjo emphasized that ministers during his tenure could not commit the government to expenditures exceeding N25 million without presidential approval. He reiterated that any purported contract awards were unauthorized and not in line with his administration’s procedures.
“In particular, the embarrassment to Nigeria caused by these acts of fraud, deceit, and malfeasance does no good to Nigeria or Nigerians,” Obasanjo said, justifying his decision to testify in defense of the national interest.
The arbitration, which has seen testimony from former President Muhammadu Buhari and now Obasanjo, underscores the complexity of Nigeria’s infrastructure development challenges. The Mambilla Power Project, once envisioned as a transformative initiative for Nigeria’s energy sector, remains stalled nearly two decades after its conception.
Obasanjo’s testimony aims to provide clarity on the circumstances surrounding the project’s contractual agreements. As the arbitration continues, the outcome will likely set a precedent for handling similar disputes in Nigeria’s public-private partnerships.
