Nigeria has recorded a major legal victory after an International Chamber of Commerce (ICC) arbitration tribunal sitting in Paris, France, rejected a $2.35 billion claim brought by Sunrise Power in connection with the Mambilla Hydroelectric Power Project in Taraba State.
The final award, issued on September 17, 2026, dismissed Sunrise Power’s claim that Nigeria had breached its contractual obligations under a settlement agreement and an addendum relating to the long-running dispute.
The case dates back to a 2003 agreement concerning the development of the Mambilla hydropower project. Sunrise Power subsequently commenced arbitration proceedings against Nigeria in October 2017, seeking approximately $2.354 billion over an alleged breach of contract.
The dispute later expanded to include another claim linked to a 2020 settlement agreement between the parties. Sunrise had sought $400 million comprising a $200 million settlement sum and a further $200 million default payment.
The tribunal rejected that claim as well, ruling against Sunrise’s request for payment of the $400 million.
In addition to rejecting Sunrise’s claims, the tribunal ordered Sunrise Power and its promoter, Leno Adesanya, to reimburse Nigeria for 75 per cent of the legal fees and expenses incurred during the arbitration.
The legal fees and expenses awarded to Nigeria were put at approximately $11.82 million. Of that amount, $2.5 million is to be recovered from funds held in escrow by the ICC, while Sunrise and Adesanya are required to pay the remaining $9.32 million, with interest at 10 per cent annually until the amount is fully paid.
The tribunal also fixed the arbitration costs at approximately $1.66 million, with Sunrise Power and Adesanya responsible for 75 per cent and Nigeria responsible for the remaining 25 per cent.
The Mambilla Hydroelectric Power Project, located in Taraba State, has been the subject of a prolonged legal and contractual dispute. The project was originally conceived as a major hydroelectric development, with earlier plans targeting more than 3,000 megawatts of generating capacity.
Reacting to the ruling, President Bola Ahmed Tinubu described the decision as a significant development for the long-delayed project, saying the judgment had removed what he considered the biggest legal obstacle that had hindered the Mambilla hydropower project for years.
The President commended the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, as well as the Federal Ministry of Justice and Nigeria’s legal defence team for their role in the arbitration.
He also acknowledged former Presidents Olusegun Obasanjo and the late Muhammadu Buhari, who testified during the proceedings, alongside other witnesses and experts involved in the case.
The latest ruling brings a significant chapter of the long-running Mambilla arbitration dispute to a close, while potentially removing a major legal impediment to further development of the hydroelectric project.
The decision also means Nigeria will not be required to pay the $2.35 billion claim pursued by Sunrise Power in the arbitration.
Post a Comment