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Nigeria has secured a major victory in the long-running legal dispute over the Mambilla Hydroelectric Power Project after an ICC tribunal in Paris dismissed Sunrise Power and Transmission Company Limited’s multibillion-dollar claims against the Federal Government.
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The three-member tribunal rejected Sunrise Power’s claim that Nigeria breached obligations under a 2020 settlement agreement and its addendum.
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The tribunal also ruled that Sunrise promoter, Leno Adesanya, is bound by the arbitration agreement and that it has jurisdiction over Nigeria’s counterclaim against him and his firm.
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President Bola Tinubu described the ruling as clearing the “single biggest legal hurdle” that had paralysed the Mambilla project for years.
September 18, (THEWILL) – Nigeria has won a major arbitration battle over the long-delayed Mambilla Hydroelectric Power Project, with an International Chamber of Commerce (ICC) tribunal in Paris dismissing claims by Sunrise Power and Transmission Company Limited that could have exposed the country to billions of dollars in liability.
The tribunal, in its final award issued on Thursday, September 17, 2026, rejected Sunrise Power’s claim that Nigeria breached contractual obligations under a settlement agreement and an addendum entered into by both parties.
It also dismissed the company’s demand for $400 million, comprising a $200 million settlement sum and another $200 million default sum.
The ruling represents a significant legal victory for Nigeria in a dispute that has stretched across successive administrations and has been linked to the stalled development of the multibillion-dollar Mambilla hydroelectric project in Taraba State.
The tribunal further ruled that Leno Adesanya, promoter of Sunrise Power, is bound by the arbitration agreement with Nigeria under the settlement agreement and addendum. It also held that it has jurisdiction over Nigeria’s counterclaim against Adesanya and his firm.
Beyond dismissing the claims, the tribunal ordered Sunrise Power and Adesanya to reimburse Nigeria 75 percent of the legal fees and expenses incurred in defending the arbitration.
The tribunal assessed Nigeria’s legal fees and expenses at $11,819,506.51. Of that amount, $2.5 million is to be paid directly from funds held in escrow by the ICC and released following notification of the final award.
Sunrise and Adesanya were ordered to pay the remaining $9,319,506.51, together with interest at an annual rate of 10 percent, compounded annually, from the date of notification of the final award until the amount is fully paid.
The tribunal also ordered that the arbitration costs be shared, with Sunrise Power and Adesanya responsible for 75 percent and Nigeria for the remaining 25 percent. The total arbitration cost was fixed at $1,656,500.
The tribunal was chaired by Melaine van Leeuwen, with Stavros Brekoulakis and Simon Nesbitt serving as co-arbitrators. Nigeria’s defence was led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP.
Tinubu Hails Victory
Reacting to the ruling, President Bola Tinubu said the ICC decision affirmed Nigeria’s determination to defend its interests against claims he described as predatory and exploitative.
In a statement he personally signed and issued by the State House, Tinubu said the arbitration tribunal had rejected the claims brought by Sunrise Power against the Federal Republic of Nigeria.
According to the President, Sunrise had sought $680 million as a settlement sum and interest in relation to another arbitration in which it was claiming more than $2.7 billion in compensation and interest over disputes surrounding the Mambilla project.
Tinubu commended Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, as well as officials of the Federal Ministry of Justice and the country’s defence team.
He specifically praised Oger-Gross and Obamuroh for what he described as their professional defence of Nigeria.
The President also commended former President Olusegun Obasanjo and the late former President Muhammadu Buhari, who he said testified in the case.
Tinubu further acknowledged former Ministers Babatunde Fashola and Suleiman Adamu, experts and other witnesses who participated in the proceedings.
He also commended the National Security Adviser for his support and the Economic and Financial Crimes Commission (EFCC) for its investigation into the case.
According to Tinubu, the ruling has removed the “single biggest legal hurdle” that had paralysed the Mambilla hydropower project for years.
“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,” the President said.
How Mambilla Dispute Started
The dispute dates back to a 2003 agreement concerning the proposed construction of the Mambilla hydropower plant in Taraba State.
Sunrise commenced arbitration proceedings against Nigeria at the ICC International Court of Arbitration on October 10, 2017, seeking about $2.354 billion in damages for alleged breach of contract.
The company’s claim arose from an agreement for the development of the 3,050-megawatt Mambilla project under a build-operate-transfer arrangement. The project was initially valued at about $6 billion.
The proposed hydropower scheme has remained one of Nigeria’s major but long-delayed power projects, with its development repeatedly affected by contractual, financing and legal disputes.
A second arbitration subsequently emerged from a 2020 settlement agreement between Sunrise and the Federal Government, with the company seeking $400 million on the basis that the terms of the settlement had not been honoured.
However, the validity and authorisation of the original contract and subsequent settlement became central issues in the dispute.
Former President Obasanjo had publicly questioned how the 2003 contract was awarded to Sunrise, insisting that he did not authorise his then Minister of Power, Olu Agunloye, to commit the Federal Government to the $6 billion project.
Obasanjo said in a 2023 interview that no minister under his administration had the authority to approve more than N25 million without express presidential consent and maintained that he had not authorised the agreement with Sunrise.
He also said he had instructed Agunloye to drop the proposal when it was presented to the Federal Executive Council in May 2003.
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Buhari Also Denied Approving 2020 Settlement
The controversy continued under the administration of former President Muhammadu Buhari, who also denied personally authorising the 2020 settlement agreement with Sunrise.
Buhari said that although the Ministers of Justice, Power and Water Resources had engaged Sunrise and other stakeholders in efforts to resolve the issues surrounding the project, he had not instructed them to conclude a settlement agreement with the company.
He further stated that when the proposed settlement agreement and addendum were presented to him for consideration on April 20, 2020, he declined to approve them because he believed there was no basis for Sunrise’s claim.
The ICC tribunal’s latest decision therefore brings a major phase of the long-running arbitration dispute to a close, while leaving the Federal Government to pursue its counterclaims against Adesanya and his firm under the tribunal’s affirmed jurisdiction.
For Nigeria, the ruling also removes a substantial financial claim from the Mambilla project dispute and shifts a significant portion of the arbitration’s legal and procedural costs to Sunrise Power and its promoter.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
