Atawodi was said to have awarded the contract for the boats and paid for them in full but none was supplied.
According to a source in the EFCC, Atawodi, who recently retired from the Air Force, was arrested Wednesday and taken into EFCC custody for questioning.
The course said the former fighter pilot is likely to be charged with conspiracy, abuse of public office and misappropriation of public funds.
He awarded the military boat purchase to one Alhaji Rabiu’s Hypertech Nigeria Limited. The contractor was fully paid but the boats were never supplied.
EFCC spokesman, Wilson Uwujaren confirmed Atawodi’s presence at the Commission, adding that he is assisting the investigation.
At press time, the retired Air Force officer was still with operatives of the commission.
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