Alleged $6bn Mambilla Power Fraud: No Record Linking China’s Financial Agencies To MoU — Witness

The third prosecution witness (PW3), Umar Hussein Babangida, on Monday, January 19, 2026, told the High Court of the Federal Capital Territory (FCT), Abuja, that there is no record showing that China’s financial agencies were parties to the Memorandum of Understanding (MoU) for the Mambilla Hydropower Project.

Babangida testified before Justice Jude Onwuegbuzie in the ongoing trial of a former Minister of Power and Steel, Olu Agunloye, who is facing an amended seven-count charge bordering on alleged official corruption and the fraudulent award of the Mambilla Power Project contract valued at $6 billion.

According to the witness, he has not seen any document indicating that China’s Ministry of Foreign Trade and Economic Cooperation (MOFTEC), MOFTEC Limited, or the China Export-Import Bank was part of the MoU executed for the project.

While being cross-examined by defence counsel, Adeola Adedipe, SAN, on Annexure 2 of Exhibit EFCC 3D, Babangida stated categorically that there was no record to show that MOFTEC or the China Export-Import Bank were signatories or parties to the agreement.

He further explained that the recommendations leading to the project approval were based on government participation not exceeding 25 per cent, a position that was subject to deliberation at the Federal Executive Council (FEC) meeting of May 21, 2003.
“Sunrise Power and Transmission Company Limited 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, and that 25 per cent became a subject for deliberation at the FEC meeting,” Babangida said.

The witness also confirmed that when the MoU was presented before the FEC, members of the council supported the memorandum. He added that at the time of the presentation, a sum of ?6 billion had already been allocated for the take-off of the project.
While reading the comments of the then President on the MoU, Babangida quoted:
“Minister: approved. Please give the two the same parameters, i.e., Federal Government participation not more than 25 per cent. Tariff not higher than the prevailing tariff of thermal plants.”
Justice Onwuegbuzie thereafter adjourned the matter to Wednesday, January 21, 2026, for the continuation of cross-examination.