Olu Agunloye, former Minister of Power and Steel, has not escaped from the grip of the Economic and Financial Crimes Commission (EFCC) for fraud in the $6 billion Mambilla Hydroelectric Power Project.
Recall that the anti-graft commission said that Agunloye awarded the contract to Sunrise Power and Transmission Company Limited without adequate authority or budgetary provision.
During his arraignment, Umar Babangida, a prosecution witness, claimed that former President Olusegun Obasanjo directed Agunloye to add N11 billion to the N6 billion previously set aside for the project.
However, Agunloye pleaded not guilty to the charges levelled against him.
Who is Olu Agunloye?
Olu Agunloye, a native of Ondo State was born on September 16, 1948. He holds a Master’s degree in Applied Geophysics from MIT and a Ph.D in Physics from the University of Ibadan.
He served as Minister of Power and Steel under former President Olusegun Obasanjo. He later became Minister of State for Defence (Navy). He’s also a former Executive Vice Chairman of National eGovernment Strategies and a gubernatorial candidate for Ondo State in 2016.
Agunloye’s first encounter with EFCC?
On December 13, 2023, the Economic and Financial Crimes Commission (EFCC) arrested Olu Agunloye, former Minister of Power and Steel, for allegedly defrauding the Mambilla Hydroelectric Power Project of $6 billion.
WITHIN NIGERIA gathered that the project, awarded to Sunrise Power and Transmission Company Limited (SPTCL) in 2003, was designed to generate 3,960 megawatts of power on a build, operate, and transfer basis.
Why was Olu Agunloye arrested?
WITHIN NIGERIA gathered that the anti-graft agency alleged Agunloye of awarding the contract without proper authorization, budgetary provision, or financial backing, violating Section 22(4) of the Corrupt Practices and Other Related Offences Act, 2000.
The EFCC also accused Olu Agunloye of disobeying a presidential directive and receiving gratification, including N5.212 million from SPTCL and Leno Adesanya.
Olu Agunloye’s bail from EFCC custody?
After only seven days in detention, Olu Agunloye, former Minister of Power and Steel, was released on bail by the Economic and Financial Crimes Commission (EFCC) following a favorable bail verdict.
The former minister was granted bail in the sum of N50 million on December 20, 2023, with two sureties in the same amount, both of whom must be reputable, wealthy, and residents of the Federal Capital Territory.
It was learned that the sureties must have homes worth $300 million and a genuine Certificate of Occupancy as part of the bail conditions.
However, Adeola Adedipe, a lawyer for Olu Agunloye, maintained that his client was not a flight risk and would remain available throughout the trial.
The EFCC contested the bail motion, but Justice Jude Onwuegbuzie granted it and ordered Agunloye to give up his international passport and attend all hearings.
The Legal Tussle?
Olu Agunloye, former Power and Steel Minister, was charged with seven counts of fraudulent contract award and official corruption by the Economic and Financial Crimes Commission (EFCC) on January 10, 2024, in Abuja’s Federal High Court.
According to the EFCC, Agunloye gave Sunrise Power and Transmission Company Limited a $6 billion contract for the Mambilla Hydroelectric Power Project with no budgetary provision, approval, or cash backup.
The charges include disregarding presidential directions, conspiring to fake documents, and getting gratification.
Agunloye pled not guilty to the allegations. Adeola Adedipe, a lawyer for Agunloye, contended that the allegations were unrelated to financial crimes, but the court rejected this claim.
Endless trial?
On September 18, 2025, the Economic and Financial Crimes Commission (EFCC) re-arraigned Olu Agunloye, the former Minister of Power and Steel, on an amended seven-count accusation.
The trial was adjourned to October 9, 2025, and then again on February 2, 2026, to allow for additional cross-examination of the prosecution’s witness, Umar Babangida, an Assistant Commissioner of Police and EFCC investigator.
Babangida claimed that former President Olusegun Obasanjo directed Agunloye to add N11 billion to the N6 billion previously allocated for the project, but the Federal Executive Council (FEC) rejected the request.
However, at the time of filing this story, the trial was still proceeding, with Agunloye pleading not guilty to the accusations.
