The ongoing saga of the Mambilla power project has taken a dramatic turn with former Nigerian President Olusegun Obasanjo announcing his intention to testify against Olu Agunloye, the ex-Minister of Power and Steel.

This move is in connection with a significant arbitration case regarding the Mambilla power plant, which has been subject to extensive legal tussles and controversies.

Sunrise Power and Transmission Co. Ltd., the company at the centre of this dispute, alleges a breach of contract by the Nigerian government. The firm contends that it had been awarded a substantial contract worth $6 billion for the Build, Operate, and Transfer (BOT) of the Mambilla power plant in May 2003 during Obasanjo’s tenure. However, the contract was subsequently repudiated by the government, leading to a demand for $2.3 billion in compensation from Sunrise Power. The company asserts this amount covers the extensive costs incurred on various financial and legal advisories before the abrupt termination of the contract.

In a surprising development, the Nigerian government’s defense in the arbitration, currently underway at the International Chamber of Commerce in Paris, includes accusations of fraud and corruption in the contract’s award. These allegations are reminiscent of the P&ID case, where a UK court overturned an $11 billion award against Nigeria due to similar claims.

Obasanjo’s decision to testify is pivotal, potentially impacting the outcome of the arbitration. His testimony is expected to provide clarity on the contract’s intricacies and the circumstances leading to its cancellation. This development follows revelations by the EFCC, which has uncovered substantial evidence of fraud, leading to charges against several individuals involved in the case.

Obasanjo’s involvement signals a critical juncture in this long-standing issue, highlighting the complex interplay of politics, law, and international business in Nigeria’s energy sector. As the case progresses, it promises to unravel further details about the controversial Mambilla power project and its far-reaching implications.