Court: Obasanjo Directed N11bn Increase in Mambilla Project Budget – Witness

A prosecution witness on Wednesday told a Federal Capital Territory (FCT) High Court in Abuja that former President Olusegun Obasanjo directed the addition of ₦11 billion to funds already appropriated for the Mambilla Hydroelectric Power Project in the 2003 federal budget.

The witness, Assistant Commissioner of Police Umar Babangida, testified during the trial of former Minister of Power and Steel, Dr. Olu Agunloye, who is being prosecuted by the Economic and Financial Crimes Commission (EFCC) over alleged irregularities surrounding the project.

According to Babangida, Obasanjo instructed Agunloye to add the ₦11 billion to the ₦6 billion earlier approved for the project during a private meeting held on May 20, 2003, a day before the matter was discussed at the Federal Executive Council (FEC) meeting.

He told the court that the former president reiterated the directive at the FEC meeting of May 21, 2003, where the proposed budget adjustment and funding structure for the power project were deliberated.

Babangida explained that the Mambilla Hydroelectric Power Project, conceived decades earlier, was designed as a build, operate and transfer (BOT) scheme, with the Federal Government initially expected to provide 25 per cent equity, estimated at about $1.5 billion.

However, he said discussions at the FEC meeting raised concerns about the scale of government participation, prompting council members, including the then Vice President, to suggest a review of the equity contribution.

Following deliberations, the council reportedly directed Agunloye to withdraw the memorandum and renegotiate with investors to reduce government equity in the project.

The witness further stated that in a letter of award dated May 22, 2003, Agunloye indicated that the Federal Government’s eventual equity participation could range between zero and 10 per cent, depending on negotiations.

Under cross-examination, Babangida admitted that while the directive to renegotiate was documented, he could not confirm the final outcome of those negotiations.

Agunloye is facing a seven-count amended charge bordering on disobedience of presidential directive, conspiracy, forgery and acceptance of gratification. He has pleaded not guilty to all the charges.

Justice Jude Onwuegbuzie adjourned the matter until February 2, 2026, for continuation of trial.