The Mambilla Hydropower project, conceived in 1972, has been mired in controversy for 55 years. Initially designed to deliver nearly 4,000 megawatts of energy, the project's progress was slow. By 1999, when Olusegun Obasanjo returned to the presidency, little had been achieved in the preceding 20 years. The project's development was marked by a series of setbacks, including changes in government and a lack of progress.
In 2003, energy minister Olu Agunloye submitted a memorandum seeking consent to contract Sunrise Power and Transmission Company Limited (SPTCL) to deliver Mambilla Hydropower. Despite the president's request to withdraw the memorandum, Agunloye awarded the contract to SPTCL. The company, incorporated in 2001 with a share capital of one million, lacked hydroelectric expertise and experience. Its promoter, Leno Adesanya, was described by Malami as "a criminal of the highest order" conspiring with previous administrations.
The arbitration tribunal in France found that Adesanya was a "repeat player" with a lucrative habit of "frivolous legal proceedings against Nigeria." In 2020, Adesanya claimed that Nigeria had agreed to settle his claims for $200 million, which was later scaled up to $400 million with interest. President Muhammadu Buhari refused to pay the bill presented by his son-in-law, Abubakar Malami. The dispute ultimately went to arbitration at the International Chamber of Commerce in Paris.
The arbitration concluded that Ministers Malami and Saleh Mamman had initialled an agreement with Adesanya without proper authority. The tribunal's 619-page decision described a complex web of corruption and cronyism. Adesanya had bribed his way to influence within successive administrations, with many senior officials on retainer. The cost of the proceedings exceeded $31 million, financed by Burford Capital Limited, a vulture fund.
The Mambilla Hydropower project's controversy has led to calls for Malami to be brought before the Legal Practitioners Disciplinary Committee and disbarred from the roll of lawyers in Nigeria. Columnists have described the case as a "scam," but the arbitration decision reveals a more complex picture. The country's experience with the project has highlighted the need for greater transparency and accountability in government contracting.
The "oil boom" of the 1970s transformed Nigeria's economy, but also created opportunities for corruption and cronyism. The country's experience with the Mambilla Hydropower project has shown how these vices can undermine development and drain public resources. The case has also raised questions about the role of foreign arbitration in disputes involving Nigerian government contracts.
The controversy surrounding Abubakar Malami's role in the Mambilla Hydropower project arbitration has significant implications for Nigeria's governance and economy. The country's ability to recover from the financial losses incurred in the project will depend on its ability to address the underlying issues of corruption and cronyism.
Key points
- The Mambilla Hydropower project's 55-year saga has resulted in significant financial losses for Nigeria.
- Abubakar Malami's role in the project has been questioned, with some calling for his disbarment from the roll of lawyers.
- The case has highlighted the need for greater transparency and accountability in government contracting in Nigeria.
