By Nkechi Eze
A prosecution witness on Monday, January 19, 2026, told a Federal High Court sitting in Abuja that there is no record to confirm that China’s financial agencies were parties to the Memorandum of Understanding for the controversial Mambilla Power Project.
The witness, Umar Hussein Babangida, who testified as the third prosecution witness (PW3) in the ongoing trial of a former Minister of Power and Steel, Olu Agunloye, made the disclosure before Justice Jude Onwuegbuzie. Agunloye is standing trial on an amended seven-count charge bordering on alleged official corruption and fraudulent award of the Mambilla Power Project contract valued at $6 billion.
During proceedings, PW3, while being cross-examined by defence counsel, Adeola Adedipe, SAN, referred to Annexure 2 of Exhibit EFCC 3d and stated that there was no record indicating that China’s Ministry of Foreign Trade and Economic Cooperation (MOFTEC), MOFTEC Limited or the China Import Export Bank were parties to the agreement contained in the MoU for the award of the power project.
Babangida further told the court that the recommendations leading to the MoU included the issue of government participation, which was capped at not more than 25 percent and made subject to deliberation at the Federal Executive Council (FEC) meeting of May 21, 2003.
According to the witness, “Sunrise Power and Transmission Company Limited proposed 35 percent government participation, while Tafag Nigeria Limited proposed 25 percent government participation. However, the then President directed that government participation should not exceed 25 percent for both companies, making the 25 percent threshold a key subject for deliberation at the FEC meeting.”
He further confirmed that when the Memorandum of Understanding was presented at the FEC meeting, members of the Council supported the memorandum. He added that at the time the MoU was presented, a sum of N6 billion had already been allocated for the takeoff of the project.
While reading from the then President’s comments on the MoU during the proceedings, Babangida quoted: “Minister: approved. Please, give the two same parameters, that is, Federal Government participation not more than 25 percent, and tariff not higher than the prevailing tariff of thermal plant.”
Justice Onwuegbuzie adjourned the matter to Wednesday, January 21, 2026, for the continuation of cross-examination.
