Home News FEC Ordered Withdrawal of N6bn Mambilla Contract, EFCC Witness Tells Court

FEC Ordered Withdrawal of N6bn Mambilla Contract, EFCC Witness Tells Court

by Our Reporter
By Lizzy Chirkpi
The Economic and Financial Crimes Commission (EFCC) has told a Federal High Court that the Federal Executive Council (FEC) under former President Olusegun Obasanjo directed former Minister of Power and Steel, Olu Agunloye, to withdraw the memo awarding the N6 billion Mambilla Power Project contract to Sunrise Power Transmission Company Limited.
Testifying as the third prosecution witness on Tuesday before Justice Jude Onwuegbuzie at the Federal High Court Abuja, Umar Hussein Babangida said the council never instructed Agunloye to reduce the federal government’s equity participation to 10 per cent.
“FEC did not ask the defendant to adjust the equity structure. What it clearly directed was the withdrawal of the award memo,” the witness stated during cross-examination by defence counsel, Adeola Adedipe.
Babangida dismissed legal opinions supporting the revival of the contract, including one written by former Attorney General of the Federation, Michael Aondoakaa, describing it as merely personal advice.
He also brushed aside a similar opinion issued in 2016 by another former Attorney General, Abubakar Malami, addressed to then President Muhammadu Buhari, which aligned with Aondoakaa’s position on the project.
When questioned about alleged settlement terms reached in 2012 concerning the contract award, the prosecution objected, and the court upheld the objection.
Further attempts by the defence to probe the legal framework governing contract approvals in the power sector were also blocked, with the prosecution arguing that the questions were speculative and violated provisions of the Evidence Act.
“This report does not make reference to any law,” prosecution counsel insisted, adding that the witness “should not be made to quote laws.”
The court subsequently adjourned proceedings until Wednesday, February 18, 2026.

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