In the high-profile $6 billion Mambila Power Project trial, a key witness on Monday told the Federal High Court that there is no record showing China’s financial agencies were part of the controversial contract.
Umar Hussein Babangida, the third prosecuting witness (PW3), made the revelation during cross-examination in the trial of former Minister of Power and Steel, Olu Agunloye, who faces a seven-count charge of alleged corruption and fraudulent award of the Mambila Power contract.
Dele Oyewale, EFCHead, Media & Publicity in a statement on Monday stated that under questioning by Agunloye’s lawyer, Adeola Adedipe, SAN, Babangida said he had never seen any agreement linking the Chinese Ministry of Foreign Trade and Economic Cooperation or the China Import Export Bank to the memorandum of understanding for the project.
He explained that government participation in the project was capped at 25% following deliberations at a Federal Executive Council (FEC) meeting on May 21, 2003.
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“Sunrise Power and Transmission Company Limited proposed 35% government participation, while Tafag Nigeria Limited suggested 25%.
“The president directed that government participation should not exceed 25% for both companies,” he said.
Babangida also confirmed that when the agreement was presented to the FEC, it received full support, noting that N6 billion had already been allocated to kick-start the project.
Quoting the then president’s comment on the agreement, he said: “Minister: approved. Please, give the two same parameters i.e., federal government participation not more than 25%. Tariff not higher than prevailing tariff of thermal plant.”
Justice Jude Onwuegbuzie adjourned the matter to Wednesday, January 21, 2026, for the continuation of cross-examination.
