ABUJA – Nigeria has secured a major victory in its long-running arbitration dispute with Sunrise Power and Transmission Company Limited over the Mambilla Hydroelectric Power Project in Taraba State.
An International Chamber of Commerce arbitration tribunal sitting in Paris on Thursday rejected claims brought by Sunrise against the Federal Government over the controversial power project.
The ruling came after Sunrise demanded $680m as a settlement sum and interest in a separate arbitration in which it is seeking more than $2.7bn in compensation and interest over disputes surrounding the development of the Mambilla project.
President Bola Tinubu, in a statement on Thursday, described the decision as a major development, saying it had cleared what he called the “single biggest legal hurdle” that had stalled the Mambilla power project for years.
Tinubu commended the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, and officials of the Federal Ministry of Justice for their role in defending Nigeria’s position before the tribunal.
He also praised Nigeria’s defence team, led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP, for what he described as their professional handling of the case.
The President further commended former President Olusegun Obasanjo and the late former President Muhammadu Buhari, who testified during the proceedings, as well as former ministers Babatunde Fashola and Suleiman Adamu and other witnesses and experts.
According to Tinubu, the dispute dates back to a 2003 agreement for the construction of a 3,050-megawatt hydroelectric plant in Taraba State under a build-operate-transfer arrangement.
He said the Federal Executive Council never authorised the contract.
The tribunal also rejected Sunrise’s demand for $400m arising from a disputed 2020 settlement agreement and declared that Sunrise promoter, Leno Adesanya, was bound by the arbitration agreement with Nigeria. It further held that it had jurisdiction over Nigeria’s counterclaim against Adesanya and his firm.
In addition, the tribunal ordered Sunrise and Adesanya to reimburse Nigeria 75 per cent of its legal fees and expenses, amounting to approximately $11.82m.
Tinubu also acknowledged the support of the National Security Adviser and the Economic and Financial Crimes Commission in relation to the case.
The President said the Federal Government remained committed to working with genuine investors and honouring its legal obligations, but would continue to defend the nation’s interests against claims it considers opportunistic.
He said the ICC ruling had removed a major legal obstacle to the long-delayed Mambilla project.