A prosecution witness in the ongoing trial of Olu Agunloye, a former Minister of Power and Steel, has told the Federal High Court in Abuja that there is no documentary record showing that China’s financial agencies were parties to the Memorandum of Understanding (MoU) for the award of the controversial Mambilla Power Project.
This was according to a statement signed by Deke Oyewale, EFCC’s Spokesman on Monday.
The witness, Umar Babangida, third prosecution witness (PW3), made the disclosure on Monday while testifying before Justice Jude Onwuegbuzie.
Agunloye is standing trial on an amended seven-count charge filed by the Economic and Financial Crimes Commission (EFCC), bordering on alleged official corruption and the fraudulent award of the Mambilla Power Project contract valued at $6 billion.
During cross-examination by Adeola Adedipe, defence counsel, Babangida was questioned on Annexure 2 of Exhibit EFCC 3d.
In his response, the witness stated categorically that he had not seen any record indicating that China’s Ministry of Foreign Trade and Economic Cooperation (MOFTEC), MOFTEC Limited, or the China Export-Import Bank were parties to the MoU relating to the project.
“I have not seen any record to confirm that MOFTEC and the China Export-Import Bank were parties to the agreement contained in the MoU,” Babangida told the court.
He further explained that the recommendations surrounding the MoU were based, among other considerations, on the issue of government participation in the project.
Read also: Geregu to hand shareholders N22.5bn in final dividend payout
According to him, the Federal Government’s equity stake was a major point of deliberation, particularly at the Federal Executive Council (FEC) meeting held on May 21, 2003.
Babangida informed the court that while Sunrise Power and Transmission Company Limited proposed a 35% government participation in the project, Tafag Nigeria Limited proposed a 25% stake.
The then-President directed that government participation should not be more than 25% for both companies.
“As a result, 25% government participation became the subject of deliberation at the FEC meeting,” he said.
The witness also confirmed that when the MoU was presented before the Federal Executive Council, members of the council supported the memorandum.
He added that at the time the MoU was considered by the FEC, a sum of N6 billion had already been allocated for the take-off of the Mambilla Power Project.
Reading from the comments attributed to the then President on the MoU, Babangida quoted: “Minister: approved. Please, give the two same parameters, i.e., Federal Government participation not more than 25 per cent. Tariff not higher than prevailing tariff of thermal plant.”
Following the testimony, Onwuegbuzie adjourned the matter to Wednesday, January 21, 2026, for the continuation of cross-examination.
Agunloye has pleaded not guilty to all the charges and maintains his innocence in the case, which centres on alleged irregularities in the award of the Mambilla Power Project, one of Nigeria’s largest proposed hydroelectric power initiatives.
