By Toba Owojaiye
The Mambilla Hydroelectric Power Project, envisioned to generate 3,050 megawatts of electricity in Taraba State, has been mired in legal disputes and administrative challenges for decades. This protracted saga has not only stalled a critical infrastructure project but also highlighted systemic issues in Nigeria’s contract management and governance.
In 2003, the Nigerian government awarded a Build, Operate, and Transfer (BOT) contract to Sunrise Power and Transmission Company Limited (SPTCL) for the Mambilla project. However, disagreements over contract terms and allegations of procedural irregularities soon emerged. Former President Olusegun Obasanjo testified that he did not approve the original contract, suggesting it was unauthorized and invalid. He pointed to a letter issued by then-Minister of Power, Dr. Olu Agunloye, which was allegedly sent without proper authorization.
The dispute escalated to international arbitration. SPTCL filed a $2.3 billion claim against Nigeria at the International Chamber of Commerce (ICC) in Paris, alleging breach of contract. The Nigerian government, in its defense, contended that the contract was invalid and that due process was not followed in its award.
In a significant development, both former Presidents Obasanjo and Muhammadu Buhari testified in the arbitration proceedings, defending Nigeria’s position. Their involvement is telling on the high stakes of the case and the government’s commitment to contesting the claims.
The controversy also led to investigations into the actions of former officials. Dr. Olu Agunloye, the former Minister of Power, was implicated in the alleged unauthorized awarding of the contract. He was detained by the Economic and Financial Crimes Commission (EFCC) and faced legal proceedings related to the case.
The prolonged legal battles have significant implications for Nigeria. The Mambilla project, if completed, could substantially boost the country’s power supply. However, the ongoing disputes have delayed its implementation, depriving the nation of much-needed energy infrastructure. Additionally, the legal proceedings have financial implications, with potential liabilities running into billions of dollars.
The Mambilla Power Project saga serves as a cautionary tale about the importance of transparency, due process, and accountability in public contracting. As Nigeria navigates the complexities of this dispute, it must also reflect on the systemic issues that allowed such a situation to arise and take steps to prevent future occurrences. The nation’s energy future and financial well-being depend on learning from these lessons and implementing necessary reforms.