An International Chamber of Commerce arbitration tribunal in Paris ruled in favour of the Federal Government of Nigeria on September 17, dismissing a multi-billion-dollar claim by Sunrise Power and Transmission Company Limited over the stalled Mambilla Hydroelectric Power Project in Taraba State.
The three-member tribunal rejected Sunrise’s demands for $680 million in settlement sums and interest, as well as additional claims tied to a separate arbitration seeking more than $2.7 billion in compensation, according to a statement from President Bola Tinubu.
The combined value of dismissed claims was about $3.38 billion.
President Tinubu called the award a “major victory” that affirmed Nigeria’s resolve to defend its interests against what he described as “predatory and exploitative claims” by local and international entities.
He said the ruling cleared the “single biggest legal hurdle” that had paralysed the Mambilla project for years.
In addition to dismissing Sunrise’s substantive claims, the tribunal ordered Sunrise and its promoter, Leno Adesanya, to reimburse about $11.82 million of Nigeria’s legal costs, with 75% of the total arbitration costs assigned to Sunrise and Adesanya and 25% to Nigeria.
The total arbitration cost was fixed at $1.66 million.
The conflict traces back to a 2003 build-operate-transfer contract for a 3,050-megawatt hydroelectric plant in Taraba State that was never authorised by the Federal Executive Council, according to the president’s statement.
The project later evolved into the 3,960-megawatt Mambilla scheme, which has been mired in legal and contractual disputes across successive administrations.
The tribunal’s final award also addressed contentious side issues, including a $500,000 payment in 2003 to one Jennifer Douglas, which Sunrise had characterised as a foreign-exchange transaction; the panel found the evidence did not substantiate that explanation.
President Tinubu commended the Attorney-General and Justice Minister Prince Lateef Fagbemi and officials at the Federal Ministry of Justice for their roles in the case.
He also praised the defence team, led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP, for what he called a professional and effective defence.
The president acknowledged testimony from former Presidents Olusegun Obasanjo and Muhammadu Buhari, as well as former Ministers Babatunde Fashola and Suleiman Adamu and other witnesses and experts.
He noted support from the National Security Adviser and the Economic and Financial Crimes Commission, which investigated aspects of the matter.
Nigeria remains committed to “genuine investors” and to honouring its legal obligations, but will continue to vigorously defend claims against the country’s commonwealth,Tinubu said.
With the ICC award in hand, attention now turns to whether the decision removes enough legal overhang to revive financing and construction of the long-delayed Mambilla hydropower project.
