Mambilla Power Project Trial, Court Hears Obasanjo Approved Deal Before Agunloye
Fresh testimony in the Mambilla power project trial has introduced a major twist, as a senior prosecution witness told the Federal Capital Territory High Court that key approvals for the controversial hydroelectric project were granted before Dr Olu Agunloye became Minister of Power. The revelation, delivered during proceedings in Abuja, has reshaped public understanding of the case and raised serious questions about the foundation of the fraud allegations against the former minister.
The witness, Assistant Commissioner of Police Umar Babangida, an investigator with the Economic and Financial Crimes Commission, testified that the core structure of the Mambilla project was established under the administration of former President Olusegun Obasanjo. According to him, the approval process began during the tenure of Agunloye’s predecessor, the late Dr Olusegun Agagu, and was supervised directly by the Presidency. This account suggests that Agunloye stepped into a process that was already underway rather than initiating a fresh contractual arrangement.
Under cross examination by defence counsel Adeola Adedipe SAN, Babangida confirmed that President Obasanjo personally instructed that Sunrise Power and Transmission Company Limited and Tafag Nigeria Limited be treated equally during negotiations. He told the court that the former president expressly directed that federal government participation in the project must not exceed 25 percent. This instruction, he admitted, applied before Agunloye’s appointment and remained binding throughout the process, indicating that subsequent ministerial actions were guided by presidential policy rather than personal discretion.
The witness further acknowledged that Obasanjo maintained strict financial controls, including a directive that no minister could approve contracts above 25 million naira without presidential authorization. Crucially, Babangida admitted that Agunloye did not breach this directive in his handling of the Mambilla proposal. He also confirmed that the project had already received financial backing, revealing that six billion naira was appropriated in the 2003 federal budget for preliminary works before the Federal Executive Council meeting of May 21, 2003. This disclosure directly counters earlier claims that the project lacked budgetary approval.
Another significant point raised in court concerned foreign involvement. The EFCC investigator stated that his review of official records revealed no evidence that the Chinese Ministry of Foreign Trade or the China Export Import Bank were formal parties to the memorandum of understanding associated with the project. This testimony undermines long standing narratives suggesting that Chinese financial institutions were directly embedded in the early contractual framework.
The emerging evidence has strengthened the defence position by establishing a clear chain of command that places the Presidency at the center of the project’s approval process. The witness also admitted that the Federal Executive Council supported the memo presented by Agunloye, reinforcing the argument that decisions were taken collectively rather than unilaterally. At the same time, the prosecution faced setbacks as Babangida struggled to identify any explicit written or verbal directive that Agunloye allegedly violated, conceding that such instructions were inferred rather than clearly documented.
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As proceedings continue, the trial is evolving into a broader examination of executive authority and administrative procedure rather than a straightforward fraud case. While the EFCC maintains that an alleged payment of 5.2 million naira to Agunloye constitutes gratification, the defence is expected to intensify its focus on the role of presidential approvals and cabinet consensus. The next hearing, scheduled for January 21, 2026, is likely to determine whether the case moves toward a resolution or further exposes the complexities behind one of Nigeria’s most controversial power projects.