A prosecution witness in the trial of former Minister of Power and Steel, Olu Agunloye, has told the Federal High Court in Abuja that the ex-minister allegedly reduced the Federal Government’s equity participation in the Mambilla Hydroelectric Power Project without approval from the President.
The witness, Umar Hussein Babangida, an investigator with the Economic and Financial Crimes Commission (EFCC), gave the testimony on Monday before Justice Jude Onwuegbuzie at the Federal High Court in Apo, Abuja.
Babangida, who appeared as the third prosecution witness (PW3), said Agunloye unilaterally reduced the government’s proposed equity stake in the project from 25 per cent to 10 per cent.
According to him, the initial recommendation was for the Federal Government to hold a 25 per cent equity stake in the project, valued at about $1.5 billion, but that there was no government approval authorising the reduction.
He told the court that the change was made without the knowledge of then President Olusegun Obasanjo.
“The recommendation for equity participation of the federal government was 25 per cent which translated to $1.5 billion, and there was no government approval for Agunloye to reduce it to 10 per cent as he did,” the witness said during cross-examination by defence counsel Adeola Adedipe, SAN.
The EFCC is prosecuting Agunloye on an amended seven-count charge bordering on alleged official corruption and the fraudulent award of the $6 billion Mambilla power project contract to Sunrise Power Transmission Company Limited.
Earlier in the proceedings, Justice Onwuegbuzie ruled in favour of the prosecution, allowing the witness to clarify discrepancies between exhibits EFCC 3K and EFCC 3D, a move earlier opposed by the defence.
Explaining the documents, the witness said both exhibits were extracts from the deliberations of the Federal Executive Council meeting of May 21, 2003, concerning the Mambilla Hydroelectric Power Plant.
“Exhibit EFCC 3K contains paragraph 14, which is an extract of the deliberation of the FEC meeting of May 21, 2003, concerning the Mambilla Hydroelectric Power Plant and exhibit EFCC 3D, paragraph 14 is also a document of FEC meeting of May 21, 2003.
“Both are the same in exact words and there is no ambiguity in the two exhibits. Exhibit 3D shows paragraph 13,14, 15 while 3K shows only paragraph 14 which was transmitted to the Ministry of Power by the cabinet office,” he said.
The witness further told the court that on May 22, 2003, a cabinet member was invited to provide additional clarification on the meeting, which was captured in Exhibit EFCC 3N.
He said the document was a response to a questionnaire directed to Obasanjo by a delegation of counsel from the Office of the Attorney-General of the Federation.
Babangida also alleged that Agunloye received N5.6 million as gratification linked to the contract award.
“The money was transferred by Jide Sotinri on the instruction of his boss, Mr. Leno Adesanya in 2003,” he said, adding that Sotinri claimed in his extrajudicial statement that the payment was meant for surgery, although bank records reflected a different entry.
The witness further told the court that there was no Ministerial Tenders Board in place in 2003 when the contract was awarded, noting that a technical committee handled the process at the time.
Following the conclusion of cross-examination, Justice Onwuegbuzie adjourned the case until March 30, 2026, for re-examination of the witness and fixed 20, 27 and April 30, 2026, for the continuation of the trial.
Agunloye reduced FG equity in Mambilla project without presidential approval – Witness
Agunloye reduced FG equity in Mambilla project without presidential approval – Witness
