Former Nigerian Presidents Olusegun Obasanjo and Muhammadu Buhari presented conflicting testimonies before the International Chamber of Commerce (ICC) Court of Arbitration in Paris concerning the controversial $6 billion Mambilla Power Project, awarded in 2003 to Sunrise Power and Transmission Company of Nigeria.
The prolonged legal dispute involves Sunrise Power’s demand for $2.3 billion in compensation from the Nigerian government for an alleged breach of contract.
On January 22, 2025, Obasanjo testified that the 2003 contract was invalid, asserting that then-Minister of Power Olu Agunloye unlawfully signed it a day after the Federal Executive Council (FEC) had rejected the proposal. He emphasized that a minister lacks executive power to unilaterally approve a contract of such magnitude.
“The agreement relied on by Sunrise Power was never valid. A minister cannot single-handedly approve a contract after the Federal Executive Council had rejected it,” Obasanjo stated.
He explained that the FEC turned down Agunloye’s request and that the minister subsequently wrote an unauthorized letter awarding the contract, which was kept hidden from Obasanjo until recently.
Obasanjo firmly denied the existence of any valid contract with Sunrise Power and dismissed suggestions that official records may have been tampered with.
In contrast, Buhari’s testimony on January 23, 2025, acknowledged the contract’s existence, undermining Nigeria’s legal defense. He admitted that his administration engaged in negotiations with Sunrise Power and that the company had grounds to pursue legal action.
“I directed the Attorney General, Abubakar Malami (SAN), and the Minister of Works and Power, Babatunde Fashola (SAN), to negotiate with Sunrise Power,” Buhari told the arbitration panel. He conceded that Nigeria had given the contract to the company and failed to honor it.
When pressed by the prosecution, Buhari acknowledged that the federal government was at fault and likened Nigeria to an “extortionist” in the dispute. He stated that Sunrise Power’s legal action was justified, considering Nigeria’s breach of agreement.
Buhari also revealed that he disapproved a $200 million settlement negotiated by his ministers, asserting that Nigeria could not afford it.
Despite Obasanjo’s assertion that Agunloye had no legal authority to issue the contract, Buhari’s testimony appeared to legitimize Sunrise Power’s claims.
Agunloye, who is currently facing trial in Nigeria for forgery, corruption, and abuse of office, has denied any wrongdoing, arguing that he is being scapegoated to weaken Sunrise Power’s case.
The conflicting testimonies from two former presidents have complicated Nigeria’s defense in the arbitration case and raised questions about the handling of one of the country’s most significant power projects.
While Buhari acknowledged Nigeria’s contractual obligations, Obasanjo insisted that no valid contract ever existed, highlighting the divided stance of the Nigerian leadership on the long-standing dispute.