Nigeria has avoided a potential $2.35 billion liability after an International Chamber of Commerce (ICC) tribunal in Paris dismissed claims brought by Sunrise Power and Transmission Company Limited over the long-disputed Mambilla Hydroelectric Power Project in Taraba State.
The tribunal also rejected a separate $400 million claim arising from a 2020 settlement agreement, bringing an end to a major phase of the arbitration between Sunrise and the Federal Government.
Beyond dismissing the claims, the tribunal ordered Sunrise and its promoter, Leno Adesanya, to reimburse Nigeria 75 per cent of the legal fees and expenses incurred in defending the case. The amount was put at $11.82 million, with $2.5 million to be released from funds held in escrow by the ICC and the remaining $9.32 million payable by Sunrise and Adesanya.
The outstanding amount will attract interest at 10 per cent annually, compounded until full payment. The tribunal also fixed the arbitration costs at $1.6565 million, with Sunrise and Adesanya responsible for 75 per cent of the amount.
The dispute dates back to a 2003 arrangement concerning the proposed Mambilla project, which was initially structured as a build-operate-transfer development. Sunrise commenced arbitration in 2017, seeking about $2.354 billion over an alleged breach of contract. The dispute later produced a 2020 settlement agreement and subsequent claims over its implementation.
In its ruling, the tribunal rejected Sunrise’s argument that Nigeria had breached its obligations under the settlement agreement and its addendum. It also held that Adesanya was bound by the arbitration agreement and that it had jurisdiction over Nigeria’s counterclaim against him and his firm.
Reacting to the decision, President Bola Tinubu described the ruling as removing the “single biggest legal hurdle” that had stalled the Mambilla project for years. He commended Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, the Federal Ministry of Justice and Nigeria’s defence team led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP.
Tinubu also acknowledged former Presidents Olusegun Obasanjo and the late Muhammadu Buhari, who testified in the proceedings, as well as former ministers Babatunde Fashola and Suleiman Adamu and other witnesses and experts.
The President said the original dispute centred on a 2003 contract for a 3,050-megawatt hydroelectric plant which, according to the government’s position, was never authorised by the Federal Executive Council. The planned Mambilla development itself is designed as a 3,960-megawatt project.
Tinubu said the Federal Government remained committed to working with genuine investors and honouring its legal obligations while defending Nigeria against claims it considers unfounded.
