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$6 billion Mambilla Power Project fraud case: EFCC To Ammend Charges Against Olu Agunloye

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EFCC Secures Approval to Amend Charges in $6 Billion Mambilla Power Project Fraud Case
Date: January 23, 2025
Location: Abuja, Nigeria

The fight against corruption in Nigeria advanced today as the Economic and Financial Crimes Commission (EFCC) secured court approval to amend charges in the high-profile $6 billion Mambilla Power Project fraud case. Justice Jude Onwuegbuzie of the Federal High Court in Apo, Abuja, granted the EFCC’s motion to amend charges against Olu Agunloye, a former Minister of Power, during a hearing on January 23, 2025.

The case centers on allegations of corruption and fraud in the award of the Mambilla Power Project contract, a landmark energy initiative intended to reshape Nigeria’s energy sector. Agunloye, who faces seven charges of official corruption and fraudulent conduct, is accused of awarding the contract to Sunrise Power and Transmission Company Limited (SPTCL) in 2003 without Federal Executive Council approval.

The Mambilla Hydroelectric Power Project: A Landmark Initiative

Location: Mambilla Plateau, Taraba State, Nigeria
Capacity: Originally planned at 2,600 MW, later revised to 3,050 MW.

The Mambilla Hydroelectric Power Project, first conceived in 1982 under President Shehu Shagari’s administration, was designed to provide a significant boost to Nigeria’s power supply. If completed, it would be one of Africa’s largest hydroelectric power projects.

Historical Development

  • Conception (1982): Envisioned as a base load hydroelectric facility to support Nigeria’s growing energy needs.
  • Initial Feasibility (1982-1985): Feasibility studies were conducted by NEPA (now PHCN) with support from international consultants. However, financial and political challenges stalled the project.
  • Renewed Efforts (2017): Negotiations with Chinese companies for funding and construction resumed, signaling progress despite ongoing delays.

Controversies and Legal Issues

The Mambilla project has been plagued by corruption allegations, particularly around the 2003 contract award. Agunloye’s alleged actions in awarding the $6 billion contract to SPTCL are at the center of the EFCC’s case.

In today’s hearing, EFCC prosecutors, led by Abba Mohammed, SAN, argued for amendments to refine the charges. Defense counsel Adeola Adedipe, SAN, opposed the motion, but Justice Onwuegbuzie ruled in favor of the EFCC, emphasizing the amendment’s necessity for judicial integrity. Agunloye is expected to enter his plea on February 3, 2025.

Current Challenges and Future Potential

Despite its promise, the Mambilla Project faces significant hurdles:

  • Corruption: Legal battles have delayed its implementation, highlighting systemic governance issues.
  • Political and Economic Factors: Shifts in administration, economic downturns, and declining global fuel prices have impacted the project’s priority and funding.

Yet, the project remains critical for Nigeria’s energy aspirations. With a planned capacity of 3,050 MW, it promises to transform the power sector, providing sustainable energy to millions.

Implications for Nigeria’s Anti-Corruption Drive

The EFCC’s pursuit of justice in this case underscores its commitment to tackling high-profile corruption cases. The Mambilla case has become a litmus test for Nigeria’s ability to hold public officials accountable and ensure the integrity of large-scale infrastructure projects.

Justice Onwuegbuzie’s ruling is a pivotal moment in this case, allowing the prosecution to strengthen its legal framework. As proceedings continue, the case serves as a reminder of the need for transparency and accountability in governance.

For updates on this landmark case, visit the EFCC’s official website or follow their social media channels.

Source: EFCC Press Release, January 23, 2025.

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