A prosecution witness, Umar Hussein Babangida, on Monday told the Federal Capital Territory High Court in Abuja that there was no record showing that China’s financial agencies, the Chinese Ministry of Foreign Trade and Economic Cooperation (MOFTEC) or the China Import-Export Bank, were parties to the Memorandum of Understanding for the Mambilla Power Project.
Naijaonpoint reports that Babangida testified before Justice Jude Onwuegbuzie in the ongoing trial of a former Minister of Power and Steel, Olu Agunloye, who is facing charges over the alleged fraudulent award of the $6bn Mambilla Power Project contract.
Agunloye is being tried on an amended seven-count charge bordering on alleged official corruption and fraudulent contract award in relation to the Mambilla Hydropower Project.
While being cross-examined by defence counsel, Adeola Adedipe, SAN, Babangida referred to Annexure 2 of Exhibit EFCC 3d, stating that the document did not indicate that MOFTEC or the China Import-Export Bank were parties to the MoU.
“There is no record to show that MOFTEC and China Import-Export Bank are parties to the agreement of the MoU,” NAIJAONPOINT said.
Babangida further told the court that recommendations on the project were based on the Federal Government’s decision to limit its participation to not more than 25 per cent, a matter deliberated upon at the Federal Executive Council meeting of May 21, 2003.
He explained that Sunrise Power and Transmission Company Limited had proposed 35 per cent government participation, while Tafag Nigeria Limited proposed 25 per cent.
“The then President directed that government participation should not be more than 25 per cent for both companies, so 25 per cent became a subject for deliberation at the FEC meeting,” he said.
NAIJAONPOINT confirmed that when the MoU was presented at the FEC meeting, members supported the memorandum.
He added that ₦6bn had already been allocated for the take-off of the project at the time.
Reading from the then President’s remarks on the MoU, Babangida said: “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.”
Justice Onwuegbuzie adjourned the matter to Wednesday, January 21, 2026, for the continuation of cross-examination.