By Ayo Susan
The International Chamber of Commerce (ICC) tribunal in Paris ruled in Nigeria’s favour in Sunrise Power’s $2.35 billion claim linked to the 3,050MW Mambilla hydropower project in Taraba State. The tribunal rejected Sunrise’s contractual claims and ordered Sunrise and promoter Leno Adesanya to reimburse 75 percent of Nigeria’s $11.82 million legal costs, with the balance payable from an ICC escrow.
DECISION HIGHLIGHT
The ruling removes a $2.35 billion claim from the immediate exposure described in the material, while also establishing financial consequences for the unsuccessful claimant. It also confirms the tribunal’s jurisdiction over Nigeria’s counterclaim against Adesanya and his firm.
DECISION MEMO
The arbitration outcome has significance beyond the size of the claim because it concerns the contractual and governmental decisions surrounding a proposed $6 billion power project initiated in 2003.
Sunrise had sought $2.354 billion for alleged breach of contract and later pursued a separate $400 million settlement claim arising from a 2020 agreement intended to resolve the dispute. The tribunal rejected both claims, including the demand for $400 million comprising a $200 million settlement sum and $200 million default sum.
The panel, chaired by Melaine van Leeuwen, with Stavros Brekoulakis and Simon Nesbitt as co-arbitrators, also held that Adesanya was bound by the arbitration agreement and that it had jurisdiction over Nigeria’s counterclaim against him and his firm.
Nigeria’s legal team was led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP.
The material also places the dispute against conflicting accounts of how the original contract and subsequent settlement were authorised. Former President Olusegun Obasanjo said in 2023 that former Power Minister Olu Agunloye lacked authority to commit the government to the project without presidential approval.
Obasanjo said: “It was impossible for Agunloye to commit my government to a $6 billion project without my permission and I did not give him any permission.”
He stated: “I never approved it.”
Former President Muhammadu Buhari similarly denied authorising the 2020 settlement, stating: “At no time did I specifically instruct them to enter into and conclude any settlement agreement with Sunrise Power and Transmission Company Limited.”
Buhari said he rejected the proposed settlement because “there was no basis for Sunrise’s claim.”
DATA BOX
- Arbitration claim: $2.354bn.
- Proposed Mambilla capacity: 3,050MW.
- Project value: $6bn.
- Separate settlement claim: $400m.
- Nigeria’s legal fees: $11.82m.
- Sunrise/Adesanya share of arbitration costs: 75 percent.
- Nigeria’s share: 25 percent.
- Arbitration costs: $1.6565m.
- Interest on outstanding legal costs: 10 percent annually, compounded.
WHO WINS / WHO LOSES
Nigeria avoids the $2.35 billion award sought by Sunrise. Sunrise and Adesanya face reimbursement of 75 percent of Nigeria’s legal costs. The ruling also leaves Nigeria’s counterclaim within the tribunal’s jurisdiction.
POLICY SIGNALS
The case highlights the fiscal consequences of contractual commitments, settlement agreements and authorisation processes surrounding major public infrastructure projects.
INVESTOR SIGNAL
The ruling underscores the importance of clear contractual authority, government approvals and enforceable dispute-resolution arrangements in large infrastructure transactions.
RISK RADAR
The immediate legal exposure described in the material has been reduced, but the underlying governance questions surrounding the Mambilla project remain significant. The material does not establish the tribunal’s detailed reasoning beyond the claims and orders reported.
Ayo Susan is a journalist, covering business, society and emerging developments with an emphasis on credible and engaging storytelling.
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