Mkpoikana Udoma
Port Harcourt — Fresh controversy has emerged in the alleged $6 billion Mambila Power Project fraud trial, as a prosecution witness told the Federal High Court in Abuja that there is no record linking Chinese financial agencies to the disputed agreement.
Testifying on Tuesday before Justice Jude Onwuegbuzie, the third prosecution witness, Umar Hussein Babangida, PW3, said he had not seen any documentation showing that China’s Ministry of Foreign Trade and Economic Cooperation, MOFTEC, or the China Export-Import Bank were parties to the Memorandum of Understanding, MoU, for the Mambila Hydropower Project.
The trial involves a former Minister of Power and Steel, Olu Agunloye, who is facing an amended seven-count charge bordering on alleged official corruption and fraudulent award of the Mambila project.
Under cross-examination by defence counsel Adeola Adedipe, SAN, Babangida referred to Annexure 2 of Exhibit EFCC 3d, stressing that the MoU contained no evidence of Chinese financial institutions backing the agreement.
“There was no record to show that MOFTEC and China Import Export Bank are parties to the agreement of the MoU,” Babangida told the court.
He explained that the recommendations leading to the MoU were primarily centred on the extent of Federal Government participation, which was a key issue deliberated at the Federal Executive Council, FEC, meeting of May 21, 2003.
“Sunrise Power and Transmission Company Ltd proposed 35 percent government participation, while Tafag Nigeria Limited proposed 25 percent,” he said.
“The then President directed that government participation should not be more than 25 percent for both companies.”
According to the witness, the 25 percent government equity threshold became a core condition considered by the FEC before approving the project framework.
Babangida further confirmed that when the MoU was presented to the FEC, it received broad support, adding that N6 billion had already been earmarked for the project’s takeoff at the time.
Reading from the then President’s comments on the MoU, the witness quoted:
“Minister: approved. Please, give the two same parameters; Federal Government participation not more than 25 percent; tariff not higher than prevailing tariff of thermal plant.”
Justice Onwuegbuzie subsequently adjourned the case to Wednesday, January 21, 2026, for the continuation of cross-examination.
The testimony adds a new dimension to the high-profile case, raising questions about the financial structure and international backing of one of Nigeria’s most controversial power sector projects.
