In a significant move, the Senate passed a resolution on Thursday, July 4, advocating for immediate action to overcome the challenges delaying the Mambilla Power Project. Senator Manu Haruna, representing Taraba Central, spearheaded the motion, emphasizing the project’s potential to transform Nigeria’s power and steel industries.
A little history
Successive governments have neglected the Mambilla Power Project, with a projected capacity of 3,050 megawatts, despite its ability to bolster the equally stalled Ajaokuta Steel Complex with a $1.7 billion investment. Lawmakers stressed the importance of sticking to the original plan of a 3,000-megawatt capacity to ensure the project’s success.
The Mambilla Power Project has a long and troubled history. In 2003, the Federal Government awarded a $6 billion Build, Operate, and Transfer (BOT) contract to the Sunrise consortium and its Chinese partners. By 2005, Sunrise had secured $5.5 billion in loans from the Chinese Eximbank. However, in 2007, the government abruptly cancelled the contract and signed a $1.46 billion civil works agreement with China Gezhouba Group Corporation/China Geo-Engineering Corporation (CGGC/CGC), violating the BOT contract with Sunrise.
This decision led to a prolonged legal battle, delaying the project for 14 years. In 2012, a new agreement was signed with Sunrise, only for the government to enter into another $5.8 billion contract with a different Chinese consortium in 2017. This prompted Sunrise to seek $2.3 billion in damages through arbitration at the International Court of Arbitration.
Several former officials also face legal scrutiny over the project’s mismanagement. Olu Agunloye, a former Minister of Power and Steel, is being prosecuted by the Economic and Financial Crimes Commission (EFCC) on seven counts related to fraudulent contract awards totalling $6 billion. Similarly, Sale Mamman, another former Minister of Power, was arrested in May 2023 for allegedly conspiring with Ministry staff to embezzle N22 billion earmarked for the Zungeru and Mambilla hydroelectric projects.
The Road Ahead
On July 4, 2024, Senator Haruna underscored the vast benefits of the Mambilla Power Project, including creating over 55,000 jobs, constructing homes for 100,000 displaced people, and producing and supplying millions of tons of steel and quarry stone. Additionally, the project promises significant opportunities for local businesses, including Ashaka and Benue cement companies and vehicle manufacturers like Innoson.
The Senate’s resolution marks a renewed commitment to realizing the potential of the Mambilla Power Project, a vital endeavour for Nigeria’s energy and industrial sectors.