Agunloye reduced FG equity in Mambilla project without presidential approval – Witness
Former Minister’s Trial Continues as Prosecution Witness Testifies
ABUJA — A key witness in the trial of former Minister of Power and Steel, Olu Agunloye, testified Monday in the Federal High Court that Agunloye allegedly reduced the Federal Government’s stake in the Mambilla Hydroelectric Power Project without presidential approval.
Umar Hussein Babangida, an investigator with the Economic and Financial Crimes Commission (EFCC), claimed during his testimony that Agunloye decreased the government’s proposed equity share from 25 percent to 10 percent. The initial recommendation valued the government’s stake at approximately $1.5 billion.
Babangida stated that the reduction was made without the knowledge of then-President Olusegun Obasanjo, asserting that no governmental approval was obtained for the change. “The recommendation for equity participation of the federal government was 25 percent, which translated to $1.5 billion, and there was no government approval for Agunloye to reduce it to 10 percent as he did,” he told the court.
Agunloye faces amended seven-count charges related to alleged official corruption and the fraudulent awarding of the $6 billion Mambilla project contract to Sunrise Power Transmission Company Limited.
Earlier in the proceedings, Justice Jude Onwuegbuzie ruled in favor of the prosecution, permitting Babangida to clarify discrepancies between two exhibits, EFCC 3K and EFCC 3D, despite opposition from the defense. Both exhibits, from a Federal Executive Council meeting on May 21, 2003, pertained to the Mambilla project. Babangida explained that while EFCC 3D contains several paragraphs, EFCC 3K includes only one, which was communicated to the Ministry of Power by the cabinet office.
On May 22, 2003, a cabinet member was invited to clarify the meeting, as documented in Exhibit EFCC 3N. This document was a response from Obasanjo’s office to inquiries from the Attorney-General’s office. Babangida also alleged that Agunloye received N5.6 million in connection with the contract award, claiming that the funds were transferred under instructions associated with the project.
The witness emphasized that in 2003, there was no Ministerial Tenders Board overseeing the contract award process, which was instead handled by a technical committee.
After concluding the cross-examination, Justice Onwuegbuzie adjourned the case until March 30, 2026, for re-examination of the witness and scheduled further trial dates for April 20, 27, and 30, 2026.
