Agunloye Slashed FG Stake in $6bn Mambila Deal Without Nod – Witness

ABUJA – A key prosecution witness leveled explosive allegations against former Power Minister Olu Agunloye on Monday, accusing him of slashing the Federal Government’s equity stake in the controversial $6 billion Mambila Hydroelectric Power Project without presidential or Federal Executive Council (FEC) approval.​

Umar Hussein Babangida, the third prosecution witness (PW3) and an Economic and Financial Crimes Commission (EFCC) investigator, delivered the testimony before Justice Jude Onwuegbuzie at the Federal High Court in Apo, Abuja. Agunloye faces an amended seven-count charge of official corruption and fraudulently awarding the project contract to Sunrise Power Transmission Company Limited in 2003.

Unauthorized Equity Cut Exposed

Babangida revealed under cross-examination by defence counsel Adeola Adedipe (SAN) that FEC had initially recommended a 25% government stake, equating to $1.5 billion of the $6 billion total. Agunloye allegedly reduced this to 10% unilaterally, bypassing required approvals – a move the witness said lacked any documented presidential consent.​

This echoes earlier trial revelations where witnesses testified that FEC, under President Olusegun Obasanjo, rejected the original memo and directed Agunloye to withdraw it entirely or explore cost-cutting options, rather than tweaking equity terms.

Court Clears Exhibit Discrepancies

Justice Onwuegbuzie first ruled in the prosecution’s favor, allowing clarification of variances between Exhibits EFCC 3K and EFCC 3D – both extracts from the May 21, 2003 FEC meeting on the Mambila plant. Babangida explained that EFCC 3K captured only paragraph 14 (transmitted to the Power Ministry), while EFCC 3D included paragraphs 13-15, showing no substantive conflict.​

He added that a May 22, 2003 cabinet follow-up, detailed in Exhibit EFCC 3N, responded to queries from Obasanjo’s counsel via the Attorney General’s delegation.​

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Gratification and Procedural Lapses

Babangida further alleged Agunloye received N5.6 million as a kickback for the contract, transferred in 2003 by Jide Sotinri on instructions from Leno Adesanya. Sotinri’s statement claimed it funded surgery, but bank records allegedly contradicted this.​

The witness noted no Ministerial Tenders Board existed in 2003; instead, a technical committee handled evaluations – underscoring procedural irregularities in the award.

With cross-examination closed, the court adjourned re-examination to March 30, 2026, and trial continuation to April 20, 27, and 30.​

The long-dormant 3,960MW Taraba State project, first flagged by Obasanjo in 2023, remains mired in international arbitration between Nigeria and Sunrise Power. Agunloye, arraigned in 2024 and re-arraigned post-charge amendment in September 2025, denies all counts as “baseless.” Prior hearings featured Obasanjo’s readiness to testify and defences invoking past AGF opinions from Presidents Yar’Adua and Buhari eras.