On Wednesday, a witness at the Federal Capital Territory High Court in Apo, Abuja, testified that the former Minister of Power and Steel, Olu Agunloye, did not adhere to a Federal Executive Council (FEC) directive regarding the awarding of the contentious Mambilla power project contract in 2003.
Umar Babangida, an Assistant Commissioner of Police (ACP) and investigator with the Economic and Financial Crimes Commission (EFCC), informed the court that the FEC opposed the proposal for the federal government to contribute $1.5 billion as its 25% equity share in the $6 billion project.
The witness indicated that instead of approving the proposal, the FEC instructed Mr. Agunloye to seek alternative solutions that would minimize the government's financial commitment to the project.
Mr. Agunloye faces allegations related to a $6 billion fraud case concerning the Mambilla power project, with the EFCC prosecuting him on seven charges that include forgery, receiving bribes, and failing to comply with presidential directives regarding the contract award in May 2003.
The Mambilla project sought to create a hydroelectric facility capable of generating 3,050 MW of power in Kakara village, Taraba State, but has yet to be realized.
The prosecution argued that Mr. Agunloye disregarded the FEC directive by signing a letter to Sunrise Power and Transmission Company Limited (SPTCL), which falsely claimed the Nigerian government's approval for the construction of a 3,960 MW hydropower station.
Initially, the EFCC charged him in 2024. After the charges were amended, he was re-arraigned in September 2025. Mr. Agunloye pleaded not guilty to all charges both times.
He has labeled the accusations as "groundless, deceptive, and vindictive."
During the hearing on Wednesday, cross-examination of witness Babangida was conducted by defense attorney Adeola Adedipe, a Senior Advocate of Nigeria (SAN).
Mr. Adedipe inquired if the FEC had indeed told Mr. Agunloye to retract the memorandum and pursue a more reasonable deal. The witness confirmed, stating, "Yes, the minister was directed to withdraw the memorandum and to engage investors in constructive negotiations, which he failed to do."
The defense pointed to a letter dated May 22, 2003, which revealed a reduction of the contract award to SPTCL from 25% to between 0% and not exceeding 10%.
Mr. Babangida acknowledged the letter but asserted that this did not reflect the actual circumstances.
The witness further testified that prior to the memorandum being presented to the FEC, then-President Olusegun Obasanjo had directed Mr. Agunloye to add N11 billion to the previously allocated N6 billion for the Mambilla project.
Mr. Obasanjo has criticized Mr. Agunloye regarding this project, asserting that he testified in arbitration proceedings in France to counter Mr. Agunloye's claims about the issue.
Mr. Umar shared that his team of EFCC investigators had already spoken with Mr. Obasanjo concerning the matter, and during cross-examination, Mr. Babangida indicated that Mr. Obasanjo clearly stated that under his leadership, the FEC never approved the contract award in 2003 as Mr. Agunloye had claimed.
In the ongoing cross-examination on Wednesday, Mr. Babangida, still under questioning by the defense, noted that Mr. Obasanjo instructed Mr. Agunloye to include the N11 billion in a memorandum for submission to the FEC meeting on the day prior to their meeting in 2003.
He mentioned that while Mr. Obasanjo communicated directives at the FEC meeting, he did not disclose the complete details of his private discussions with Mr. Agunloye, which were preparatory for final approval by the FEC.
"The details of the prior day's discussions were not fully conveyed by the former president, and that was meant to facilitate the FEC's final approval," the witness elaborated, adding that ultimately, the FEC rejected the additional request. Instead, various members, including former Vice-President Atiku Abubakar and another unnamed minister, called for a decreased government stake.
When pressed about whether this constituted the basis for withdrawing the memorandum directed by Mr. Obasanjo, Mr. Babangida replied, "That is not entirely correct. There were multiple observations raised by the former Vice President and executive council members."
The trial judge, Jude Onwuegbuzie, postponed the case until 2 February.
In previous cross-examinations, the witness testified that Mr. Agunloye had adhered to Mr. Obasanjo's instructions by ensuring that government participation was set at 25% when endorsing SPTCL for the project.
Mr. Babangida remarked that SPTCL had initially proposed 35% government involvement, while Tafag Nigeria Limited proposed 25%. However, Mr. Obasanjo requested that both proposals be consistent, limiting government involvement to a maximum of 25%.
Additionally, Mr. Babangida recounted Mr. Obasanjo's response to a letter from Mr. Agunloye's predecessor, Olusegun Agagu, where Mr. Obasanjo explicitly authorized the project with the stipulation that the Federal Government's participation remain no higher than 25%, and certain tariff conditions applied.
In June 2024, Adebayo Ilori, a compliance officer with Guaranty Trust Bank (GTB), testified about Jude Sotirin of SPTCL transferring a total of N5 million to Mr. Agunloye multiple times.
Conversely, a witness named Adewale Agunbiade, a former bank compliance officer, refrained from testifying, citing a lack of authorization from his current employer.
The Mambilla project, initially granted to SPTCL in 2003 by the Obasanjo government, remains embroiled in extensive legal disputes currently pending international arbitration between the company and the Nigerian government.
In 2023, Mr. Obasanjo accused Mr. Agunloye of the fraudulent awarding of the contract without appropriate approvals.
However, the former minister rebutted these allegations, claiming he was being scapegoated to deflect attention from the failure to uphold contractual obligations related to the project.
The project aimed to produce 3,960 MW of electricity and was designed for execution under a build, operate, and transfer framework.
In 2023, he was also declared wanted by the EFCC concerning the case, but he turned himself in for questioning regarding the failed multi-billion-dollar Mambilla Hydropower initiative. Later, he initiated legal action against the EFCC for what he alleged was an infringement of his fundamental rights, but the Federal High Court in Abuja dismissed the suit in March 2024.
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