How Obasanjo and Buhari Embarrassed Nigeria in Paris

“In every community there is a class of people profoundly dangerous to the rest. I don’t mean the criminals. For those we have punitive sanctions. I mean the leaders. Invariably, the most dangerous people seek power.” – Saul Bellow, 1915-2005, Vanguard Book of Quotations, VBQ p. 124.

Nigeria seems to have set another undesirable record at the International Chamber of Commerce (ICC) in Paris, France, in connection with the $2.3 billion arbitration proceedings filed against Nigeria by Sunrise Power over an alleged breach of contract by the federal government.

The panel of arbitrators must have been embarrassed for Nigeria, as it is quite possible they have never had to witness former Presidents testify before them about a nation’s alleged breach of contract. Here were two former Presidents, Obasanjo and Buhari, dragging Nigeria into a financial mess, now exposing the country to a $2.3 billion penalty.

The Question of Embarrassment

The first obvious question is whether Obasanjo and Buhari, both individually and collectively, felt embarrassed sitting in front of the arbitration panel. In many situations, a person of honor, particularly a former President, should never find themselves in such a predicament. Nigeria now faces an alarming contingent liability of N3.68 trillion, potentially due to the decisions of these two former leaders. Yet, they returned from the proceedings without briefing Nigerians on the funds they are about to jeopardize, as though nothing had happened.

A Looming Danger

If the panel delivers a verdict against Nigeria, up to $2.3 billion, Nigerian assets worldwide, including the Presidential jet, can be seized.

Leadership and Accountability

John de Maistre once said, "Every country has the government it deserves." In this case, the people of Nigeria must be prepared to face the consequences of the choices made by their leaders. The greatest tragedy lies in the fact that these two former Presidents will most likely evade accountability for this catastrophe against the Nigerian people.

Obasanjo and Buhari, with their unrepentant self-righteousness, continue to condemn corruption, despite being the ones who steered Nigeria into this dangerous financial situation. Their administration and the legal processes under their watch were tainted with corruption and poor decisions.

The Origins of the Crisis

Much of the mess originates from Obasanjo’s tenure (1999-2007). During this time, he secured $13-16 billion with the goal of increasing Nigeria’s power supply to 10,000 MW per day by the end of his term. His Minister of Power, Engineer Lyel Imoke, was tasked with this initiative. The biggest blunder occurred when a $6 billion contract, intended to generate 3,050 MW from a hydropower station at the Manbilla Plateau in Taraba State, was assigned to a Minister of State, Dr. Olu Agunlove.

The project, now one of Nigeria’s biggest abandoned ventures, was eventually halted by the federal government, setting the stage for the legal battle with Sunrise Power and the potential penalty of $2.3 billion.

A Series of Missteps

The problems began when Obasanjo initially approved the contract but later tried to void it for reasons known only to him. Agunlove, however, claims he received no instructions to stop the project and proceeded with it, only for the government to intervene later. Such unclear instructions and lack of written documentation between Obasanjo and Agunlove leave the situation open to serious questions and doubts about the integrity of the process.

Both former leaders, Obasanjo and Agunlove, failed to provide the necessary written instructions or approvals that would have cleared their names. The failure to document decisions on such crucial matters is shocking, especially given Obasanjo’s long history in government and the professional standards he should have adhered to.

The Bigger Picture

Presidents Yar’Adua and Jonathan, along with their Attorneys General and Ministers of Power, compounded the problem by failing to settle the matter during their administrations. Nigeria’s current liabilities would have been significantly lower had they acted on it.

Buhari’s government eventually terminated the contract, but his failure to act decisively earlier only worsened the situation. The arbitration proceedings and the financial jeopardy facing Nigeria should have made the panel of arbitrators wonder how a country with such abundant resources could have been governed by such incompetent leaders.

Obasanjo, in particular, once criticized late Chief Bola Ige, SAN, who served as his first Minister of Power and Steel, for his failure. Yet it seems doubtful whether Obasanjo was ever aware of his own shortcomings during his tenure.