$6bn Mambilla Power Contract: Obasanjo and Buhari Testify in Paris Court
Nigeria is facing a major international embarrassment at the International Chamber of Commerce (ICC) in Paris, where former Presidents Olusegun Obasanjo and Muhammadu Buhari testified in a $2.3 billion arbitration case filed against the country. The case concerns an alleged breach of contract related to the Mambilla Power project, which could potentially result in the seizure of Nigerian assets globally if a verdict is rendered against the country.
The arbitration, centered on the failed $6 billion Mambilla hydroelectric power project, began during Obasanjo’s administration in 1999. It was meant to generate 3,050MW of electricity from the Mambilla Plateau in Taraba State but has remained one of Nigeria’s largest abandoned projects.
Key Issues in the Case
The contract was initially awarded to a company, Sunrise Power, but after Obasanjo’s government issued mixed signals on its approval, the project stalled. Dr. Olu Agunlove, who served as Minister of State for Power, proceeded with the contract despite unclear instructions from Obasanjo, leading to a legal dispute with Sunrise Power. The situation worsened when Buhari’s administration terminated the contract, further escalating Nigeria’s potential liability.
Obasanjo and Buhari’s Responsibility
The case highlights the failure of both Obasanjo and Buhari to properly handle the agreement, with missing documentation and unclear communication between the government and contractors. While Buhari’s government eventually canceled the contract, Obasanjo’s original mismanagement of the project and failure to issue clear instructions has left Nigeria exposed to massive liabilities.
The arbitration panel’s proceedings have led many to question the leadership of both former Presidents, particularly in light of the substantial impact their actions (or lack thereof) have had on Nigeria’s economy and its international reputation.
Broader Implications for Nigeria
The $2.3 billion arbitration case reflects systemic issues in Nigeria’s governance, particularly with regard to transparency, contract management, and leadership accountability. The failure of previous administrations to address the project’s challenges and settle the matter has resulted in a situation that could lead to significant financial consequences for the nation. The dispute also serves as a reminder of the lasting effects of poor administrative practices in high-level government projects.
Nigeria now faces the possibility of international penalties that could endanger critical national assets, including the Presidential jet. As Nigeria awaits the arbitration panel’s decision, many Nigerians are left to reflect on the leadership choices that have brought the country to this point.
