Vanguard Newspaper has revealed a shocking diplomatic embarrassment as former Nigerian Presidents Olusegun Obasanjo and Muhammadu Buhari testified before an arbitration panel in Paris over the controversial $6 billion Mambilla Power Project contract dispute. The legal battle, which could cost Nigeria a staggering $2.3 billion (₦3.68 trillion) in contingent liabilities, exposes years of administrative missteps, political recklessness, and bureaucratic chaos.
It is rare—if not unprecedented—for two former heads of state from the same country to find themselves testifying in an international arbitration case, defending actions that plunged their nation into potential financial ruin. The International Chamber of Commerce (ICC) arbitration tribunal in Paris, where Obasanjo and Buhari appeared, must have been bewildered by Nigeria’s predicament: a nation with immense human and natural resources being mismanaged to the point of near-collapse.
The fundamental question is: did Obasanjo and Buhari feel the weight of their actions while sitting before the panel? Did they acknowledge the disgrace of exposing Nigeria to such legal and financial vulnerability? Or, as history suggests, did they remain characteristically indifferent, convinced of their own infallibility?
The roots of this national embarrassment trace back to the Obasanjo administration (1999–2007). His government, in its bid to reform Nigeria’s power sector, awarded the $6 billion Mambilla Hydropower Project to Sunrise Power and Transmission Company Limited. The project, expected to generate 3,050 megawatts of electricity, was initially overseen by the then Minister of State for Power, Dr. Olu Agunloye, rather than the substantive Minister of Power, Engr. Liyel Imoke.
However, in a bizarre twist, Obasanjo later attempted to rescind the contract—without following due process. Agunloye, on the other hand, claimed he never received formal instructions to halt the project and proceeded to authorize Sunrise Power’s engagement. This lack of written directives, compounded by Nigeria’s characteristic administrative inefficiencies, created the legal loophole that Sunrise Power would later exploit.
Rather than addressing the contract dispute during the Yar’Adua and Jonathan administrations, Nigerian leaders allowed the issue to fester. By the time Buhari took office in 2015, the case had already escalated into a full-blown legal crisis.
Buhari’s administration ultimately terminated the contract, but not before Sunrise Power had already filed a $2.3 billion arbitration claim against Nigeria for breach of contract. Had the dispute been settled earlier, Nigeria’s financial exposure could have been significantly lower. Instead, Buhari’s characteristic indecisiveness—his well-documented habit of procrastination—further exacerbated the situation.
Both Obasanjo and Buhari have consistently portrayed themselves as anti-corruption crusaders, yet their handling of the Mambilla contract reeks of administrative incompetence and governance failure. Their actions—or inactions—have now placed Nigeria at risk of forfeiting national assets to settle a massive legal penalty.
The hypocrisy is glaring: these two leaders frequently decry corruption, yet their decisions (or lack thereof) have cost Nigeria billions. The same Obasanjo who famously ridiculed late Chief Bola Ige, SAN, for being ineffective as Minister of Power, now finds himself unable to justify his own disastrous handling of Nigeria’s energy sector.
Renowned philosopher Joseph de Maistre once remarked, “Every nation gets the government it deserves.” The question for Nigerians is: do we truly deserve this cycle of mismanagement, recklessness, and legal battles that drain our resources and tarnish our reputation?
While ordinary citizens struggle with poverty, inflation, and power outages, former leaders who contributed to these crises continue to live in luxury—untouched by the consequences of their decisions. The worst part? They will likely walk away unscathed, while the country foots the bill.
With Nigeria now waiting for the arbitration tribunal’s verdict, the nation stands at the mercy of an international legal process that could lead to asset seizures, economic losses, and further damage to its global standing. If found guilty, even the presidential jet could be at risk of confiscation.
This is not just a legal dispute—it is a reflection of decades of leadership failure. And, once again, it is the Nigerian people who will bear the cost.
PIONEER NEWS 