President Bola Tinubu has welcomed an international arbitration ruling that rejects a USD 680 million settlement claim by Sunrise Power and Transmission over the stalled Mambilla hydropower project.
Arbitration Ruling Validates State Position
An arbitral tribunal from the ICC International Court of Arbitration issued its award on Thursday, September 17, in Paris, determining that Nigeria is not bound by a 2020 settlement agreement with Sunrise Power and Transmission, owned by Leno Adesanya. The tribunal found the agreement was not properly approved by the government. Arbitrators found in Nigeria’s favour and ordered Sunrise and Adesanya to pay 75% of Nigeria’s costs, with 10% interest, compounding annually.
The Nigerian construction company, owned by Leno Adesanya, had been awarded a contract in 2003 for the development in Taraba state. The country had hoped that construction on the 3960MW Mambila Hydroelectric Power Project would begin in 2017, but the project has been delayed by legal battles. Sunrise filed an arbitration at the ICC in 2017 worth up to USD 2.4 billion, after being told by the government that its contract was invalid. The concession was ultimately awarded to another company.
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Corruption Allegations and Political Testimony
In 2020, Nigeria’s ministers of justice and power agreed to a settlement requiring the state to pay USD 400 million plus 10% annual interest. However, the latest arbitration found this agreement invalid as well. Reports highlighted financial ties between Sunrise owner Leno Adesanya and former Minister of Justice Abubakar Malami, while former Minister of Power Saleh Mamman was convicted of corruption offenses the previous year.
Broader Context of Legal Defense
The award follows Nigeria’s 2020 reversal of a USD 11 billion judgment against the country in a separate P&ID arbitration, reinforcing its strategy of challenging foreign legal claims. Tinubu’s statement highlighted the federal government’s resolve to protect national interests through rigorous legal defense. Nigeria was represented by partners Elizabeth Oger-Gross and Tolu Obamuroh from Paul Hastings, ALP NG & Co, and Clifford Chance represented Sunrise with backing from Burford Capital.
“Today’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydropower project for years,” Tinubu said, noting that the ruling “affirms the Nigerian State’s determination not to succumb to predatory and exploitative claims by corrupt local and international entities and their enablers and funders.”