Nigeria’s President Bola Tinubu has hailed a ruling from an international arbitral tribunal, which determined that the country is not required to pay a $680 million settlement related to a dispute over the Mambilla hydropower project.
Arbitration Decision
On September 17, an ICC International Court of Arbitration panel in Paris concluded that Nigeria was not legally obligated under a 2020 agreement with Sunrise Power and Transmission—owned by businessman Leno Adesanya—because the deal lacked proper government approval. The tribunal’s decision came after years of legal challenges.
In an official statement released the same day, President Tinubu remarked: “Today’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydropower project for years.”
The original contract, awarded in 2003 to Sunrise for the Taraba State project, was intended to launch a 3,960-megawatt hydroelectric facility. Construction was expected to commence in 2017, but repeated litigation has repeatedly delayed progress.
After the Nigerian government declared the 2003 contract invalid in 2017, Sunrise initiated ICC arbitration seeking up to $2.4 billion in damages. According to Tinubu, the Federal Executive Council never authorised the contract, and the company was instructed to reapply, though the concession was ultimately granted to a different firm.
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In 2020, the then-ministers of justice and power negotiated a settlement requiring Nigeria to pay $400 million plus 10% annual interest to Sunrise.
Legal and Political Repercussions
The latest arbitration overturned that settlement, citing concerns over reported financial ties between Sunrise’s owner, Leno Adesanya, and former Justice Minister Abubakar Malami. Additionally, the former Power Minister Saleh Mamman faced corruption convictions within the past year.
The arbitrators, Melanie van Leeuwen, Stavros Brekoulakis, and Simon Nesbitt, ruled in Nigeria’s favor, directing Sunrise and Adesanya to cover 75% of the country’s legal expenses, including 10% annual compound interest.
Two former Nigerian presidents, Olusegun Obasanjo and the late Muhammadu Buhari, provided testimony in support of Nigeria’s case. Tinubu acknowledged their contributions, calling their involvement an example of “patriotism and support.”
The president also recognized the “tremendous efforts” of Attorney-General and Minister of Justice Prince Lateef Fagbemi, along with other current and former officials. He emphasized: “This latest decision 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.”
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The ICC’s decision follows Nigeria’s 2021 victory in overturning a fraudulent P&ID arbitration that could have imposed an $11 billion liability.
Tinubu stated that while Nigeria 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.
Legal Representation
Nigeria’s defense was led by Paul Hastings’ Paris-based partners Elizabeth Oger-Gross and Tolu Obamuroh, who previously worked at White & Case. Tinubu commended their “professional and excellent defence of the country”.
Further representation came from senior partner Olasupo Shasore and partner Oyinkansola Badejo-Okusanya from Nigerian firm ALP NG & Co, who were instructed by then Minister for Power Babatunde Fashola in 2017.
Sunrise was advised by Clifford Chance, with partners Alexandros Panayides and Jason Fry KC in London and Paris, along with senior associate Beatrice Bowles-Bray in London and Pauline Lafleure-Höflich in Frankfurt. The firm G Elias, Solon, and third-party funder Burford Capital also assisted the company.