Mambila $6bn Fraud Trial: Witness Debunks Chinese Agencies’ Role, Affirms Agunloye Adhered to Obasanjo’s Orders

In a dramatic twist to the ongoing $6 billion Mambila Hydroelectric Power Project fraud case, a key prosecution witness has testified that there are no records linking major Chinese financial institutions to the controversial Memorandum of Understanding (MoU). This revelation challenges long-held assumptions about international involvement in the stalled mega-project.

Umar Hussein Babangida, the third prosecution witness and an Assistant Commissioner of Police with the Economic and Financial Crimes Commission (EFCC), made the disclosure during cross-examination on Monday before Justice Jude Onwuegbuzie at the Federal High Court in Abuja.

Babangida, under questioning by defence counsel Adeola Adedipe (SAN), reviewed Annexure 2 of Exhibit EFCC 3d – the MoU for the project. He stated clearly: “There is no record to show that MOFTEC (Chinese Ministry of Foreign Trade and Economic Cooperation) and the China Import Export Bank are parties to the agreement of the MoU.”

This testimony raises serious questions about the purported financing and partnership from China, which has been a central narrative in the scandal that has dogged the Mambila project for over two decades.

The defendant, Dr. Olu Agunloye, former Minister of Power and Steel under President Olusegun Obasanjo, is facing an amended seven-count charge bordering on official corruption, conspiracy, forgery, and fraudulent award of the $6 billion contract to Sunrise Power and Transmission Company Limited (SPTCL). Agunloye has pleaded not guilty to all charges.

Further insights from Babangida highlighted the project’s financial parameters. He explained that SPTCL had proposed 35% government participation, while Tafag Nigeria Limited suggested 25%. President Obasanjo directed that federal government stake should not exceed 25% for both companies.

Reading from Obasanjo’s handwritten note on a November 20, 2002, letter, Babangida quoted: “Minister: approved. Please, give the two the same parameters, i.e., Federal Government participation not more than 25%. Tariff not higher than prevailing tariff of thermal plant.”

When asked if Agunloye exceeded this presidential directive in recommending SPTCL, Babangida responded firmly: “No, my Lord.” He added that the basis for Agunloye’s recommendation predated his appointment as minister and that the Federal Executive Council (FEC) supported the MoU during its May 21, 2003, meeting.

Babangida also confirmed that ₦6 billion was already appropriated in the 2003 budget for the project’s takeoff, underscoring the government’s initial commitment.

The Mambila Hydroelectric Power Project, envisioned as Nigeria’s largest power infrastructure initiative with a capacity of 3,050MW in Taraba State, has remained stalled amid endless legal tussles, corruption allegations, and contractual disputes. The case involves claims that Agunloye conspired with Leno Adesanya of SPTCL to forge documents for the build-operate-transfer contract.

Justice Onwuegbuzie adjourned the matter to Wednesday, January 21, 2026, for continuation of Babangida’s cross-examination.

This development comes as the EFCC intensifies its probe into high-profile corruption cases from the early 2000s, with implications for Nigeria’s power sector reforms. NaijaChoice News will continue to monitor the trial as it unfolds.