By Ayo Ayodele
The third prosecution witness in the ongoing trial over the alleged $6 billion Mambilla Power Project fraud, Umar Hussein Babangida (PW3), has told the Federal High Court in Abuja that there is no record showing that Chinese financial agencies were parties to the Memorandum of Understanding (MoU) for the project.
Babangida gave the testimony on Monday, January 19, 2026, before Justice Jude Onwuegbuzie during the 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 fraudulent contract award.
While being cross-examined by defence counsel, Adeola Adedipe, SAN, PW3 referred to Annexure 2 of Exhibit EFCC 3d and stated that there was no document 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 for the Mambilla Power Plant contract.
He explained that recommendations on the project were based partly on the level of federal government participation, which was capped at 25 percent, subject to deliberation at the Federal Executive Council (FEC) meeting of May 21, 2003.
According to him, Sunrise Power and Transmission Company Limited proposed 35 percent government participation, while Tafag Nigeria Limited proposed 25 percent. However, the then President directed that government equity in both proposals should not exceed 25 percent, making the issue a key subject of discussion at the FEC meeting.
Babangida further told the court that when the MoU was presented to the FEC, council members supported the memorandum. He added that at the time, N6 billion had already been allocated for the takeoff of the project.
Reading from the then President’s comments on the MoU, the witness quoted: “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 Onwuegbuzie adjourned the case to Wednesday, January 21, 2026, for the continuation of cross-examination.