Reported by: Ijeoma G | Edited by: Gabriel Osa
Abuja — A prosecution witness on Wednesday, January 21, 2026, told a Federal High Court in Abuja that former President Olusegun Obasanjo allegedly directed a former minister to increase the budget for the controversial Mambilla Hydroelectric Power Project by ₦11 billion. The testimony came during the ongoing trial of Dr. Olu Agunloye, a former Minister of Power and Steel, who has pleaded not guilty to charges filed by the Economic and Financial Crimes Commission (EFCC).
The witness, Assistant Commissioner of Police Umar Babangida, an EFCC investigator, told the court presided over by Justice Jude Onwuegbuzie that Obasanjo held a private meeting with Agunloye on the night of May 20, 2003, ahead of a Federal Executive Council (FEC) session. According to Babangida, Obasanjo allegedly instructed Agunloye to add ₦11 billion to the ₦6 billion already appropriated in the 2003 federal budget for the Mambilla project, a strategic initiative intended to expand Nigeria’s power generation capacity.
Babangida explained that although the details of the private discussion were not fully disclosed at the FEC meeting, the former president reportedly mentioned the directive during the council session. The testimony further outlined that the project had lingered in planning since 1981 and was only awarded in 2003 after screening seven companies interested in securing the contract.
Agunloye is being prosecuted on an amended seven‑count charge including disobeying presidential directives, conspiracy, forgery, and receiving gratification linked to the Mambilla project. He has denied all the charges. The EFCC alleges that improper conduct and irregular approvals were involved in portions of the project’s planning and budgetary processes.
Babangida also told the court that after the FEC supported a memorandum presented by Agunloye on May 22, 2003, regarding the federal government’s 25 per cent equity participation in the project under a build, operate and transfer arrangement, then Vice‑President Atiku Abubakar and another minister suggested reevaluating the government’s share. However, the witness clarified that requests to withdraw the memorandum were based on multiple observations by council members, not solely on the suggestion to reduce equity participation.
Part of the evidence presented included a letter of award to Sunrise Power and Transmission Company Limited (SPTCL) dated May 22, 2003, in which the eventual equity participation was stated to vary from zero to not more than 10 per cent — a reduction from the originally proposed 25 per cent. Babangida said that while this adjustment was reflected in documentation, it did not necessarily correspond with what ultimately transpired.
Justice Onwuegbuzie adjourned the matter to February 2, 2026, for continued cross‑examination of Babangida, the third prosecution witness in the case. The trial has drawn considerable public interest given the prominence of those involved and the scale of the infrastructure project, which has been at the centre of controversy for years.
The Mambilla Hydroelectric Power Project, initially proposed as a 3,960‑megawatt facility, remains one of Nigeria’s most ambitious power infrastructure plans. It has faced repeated delays, cost escalations, and legal scrutiny, making the current trial a focal point for broader concerns about transparency and accountability in federal project execution.
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