Nigeria has secured a major victory in its long-running legal dispute with Sunrise Power and Transmission Company Limited over the proposed Mambilla Hydroelectric Power Project in Taraba State.
An International Arbitration Tribunal constituted under the International Chamber of Commerce (ICC) in Paris on Thursday dismissed claims brought by Sunrise, including demands for hundreds of millions of dollars in settlement and default payments.
Sunrise had sought $680 million as settlement and interest in connection with a separate arbitration in which it is pursuing more than $2.7 billion in compensation and interest over disputes linked to the Mambilla project.
The tribunal also rejected the company’s request for an order compelling Nigeria to pay $400 million, comprising a $200 million settlement sum and another $200 million in default payments.
In addition, the tribunal ruled that Leno Adesanya, promoter of Sunrise, is bound by the arbitration agreement contained in the settlement agreement and its addendum. It further held that it has jurisdiction over Nigeria’s counterclaim against Adesanya and his firm.
Sunrise and Adesanya were ordered to reimburse Nigeria 75 per cent of its legal fees and expenses, valued at $11.82 million. The tribunal also assessed arbitration costs at $1.6565 million, with Sunrise and Adesanya responsible for 75 per cent and Nigeria liable for the remaining 25 per cent.
Reacting to the ruling, President Bola Tinubu said the decision demonstrated Nigeria’s resolve to protect its interests against what he described as “predatory and exploitative claims”.
“On behalf of the Government and People of the Federal Republic of Nigeria, I strongly commend the tremendous efforts of the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi and the entire team at the Federal Ministry of Justice for their efforts in this matter,” Tinubu said in a statement signed by his Special Adviser on Information and Strategy, Bayo Onanuga.
The President also commended the Federal Republic of Nigeria’s defence team, led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP, for what he described as their professional defence of the country.
“I also commend the FRN defence team, led by Ms Elizabeth Oger-Gross and Mr Tolu Obamuroh, both of Paul Hastings LLP, for their professional and excellent defence of the country.
“I commend the patriotism and support of former President Olusegun Obasanjo, GCFR, and late President Muhammadu Buhari, GCFR, who testified in the case, which dated back to an illegal 2003 contract to build a 3,050-megawatt hydroelectric plant in Taraba State under a build-operate-transfer model. The Federal Executive Council never authorised the contract.”
Tinubu also acknowledged the contributions of former ministers Babatunde Raji Fashola, SAN, and Suleiman Adamu, alongside other witnesses and experts who participated in the proceedings.
“I commend the National Security Adviser for his support and the Economic and Financial Crimes Commission for its investigation into the case.
“I want to assure you that while our country remains committed to partnering with genuine investors and honouring its legal obligations, it will continue to defend all opportunistic claims instituted against our commonwealth strongly,” he said.
According to the President, Thursday’s decision had eliminated what he described as the most significant legal obstacle to the stalled Mambilla project.
“Today’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydro power project for years,” Tinubu said.
The dispute originates from a 2003 agreement concerning the proposed 3,050-megawatt Mambilla hydroelectric facility, which was planned for development under a build-operate-transfer arrangement.
Sunrise initiated arbitration proceedings against Nigeria before the ICC International Court of Arbitration in October 2017, seeking approximately $2.354 billion over an alleged breach of contract.
The parties subsequently entered into a settlement agreement in 2020 under which Nigeria was expected to pay Sunrise $200 million.
A fresh dispute later emerged over the settlement, prompting another arbitration in which Sunrise sought $400 million, consisting of the $200 million settlement amount and an additional $200 million default payment.
Thursday’s ruling dismissed Sunrise’s claims arising from the settlement agreement and its addendum, marking a major development in the protracted legal dispute surrounding the Mambilla project.
