Court Sh0ck As Witness Says No China Bank In Mambilla Power MoU
Court Shock As Witness Says No China Bank In Mambilla Power MoU
A prosecution witness, Umar Hussein Babangida, on Monday informed the Federal Capital Territory High Court in Abuja that there was no documentary evidence indicating that Chinese financial institutions or government agencies were parties to the Memorandum of Understanding (MoU) for the Mambilla Power Project.
Babangida gave the testimony while appearing before Justice Jude Onwuegbuzie in the ongoing trial of a former Minister of Power and Steel, Olu Agunloye, who is standing trial over allegations bordering on the fraudulent award of the $6 billion Mambilla Hydropower Project contract.
The former minister is being prosecuted on an amended seven-count charge related to alleged official corruption and irregularities in the contract award process for the power project.
During cross-examination by defence counsel, Adeola Adedipe, SAN, the witness referred the court to Annexure 2 of Exhibit EFCC 3d, stating that the document did not list China’s Ministry of Foreign Trade and Economic Cooperation (MOFTEC) or the China Import-Export Bank as parties to the MoU.
Babangida told the court that there was no record showing the involvement of MOFTEC or the China Import-Export Bank in the agreement.
He further explained that recommendations on the project were guided by the Federal Government’s decision to limit its equity participation to not more than 25 per cent, a matter deliberated upon during the Federal Executive Council (FEC) meeting held on May 21, 2003.
According to the witness, while Sunrise Power and Transmission Company Limited proposed a 35 per cent government stake, Tafag Nigeria Limited suggested 25 per cent. However, the then President directed that government participation should not exceed 25 per cent for both companies.
Babangida confirmed that the MoU was presented to the FEC, where members expressed support for the memorandum. He added that ₦6 billion had already been earmarked for the take-off of the project at the time.
Reading from the former President’s remarks on the MoU, the witness quoted the approval as directing that Federal Government participation should not exceed 25 per cent and that the tariff should not be higher than the prevailing tariff of thermal power plants.
Justice Onwuegbuzie subsequently adjourned the case to Wednesday, January 21, 2026, for the continuation of cross-examination.
