Nigerian President Bola Tinubu has hailed a victory in an international arbitration over a hydropower project, with an ICC tribunal ruling that the country does not have to pay $680 million to settle a dispute. The tribunal found that a 2020 settlement agreement between Nigeria and Sunrise Power and Transmission, owned by Leno Adesanya, was not binding as it had not been properly approved by the government.
The Mambilla hydropower project, which aims to develop a 3960MW hydroelectric power plant in Taraba state, has been delayed by legal battles. Sunrise had been awarded a contract in 2003, but the project was put on hold after the government deemed the contract invalid. The company filed an arbitration claim worth up to $2.4 billion in 2017.
Arbitration Ruling
Arbitrators Melanie van Leeuwen, Stavros Brekoulakis and Simon Nesbitt found in Nigeria’s favour and ordered Sunrise and Adesanya to pay 75% of Nigeria’s costs, with 10% interest, compounding annually. The ruling is a significant victory for Nigeria, which had faced a potentially large financial burden.
Former Presidents Olusegun Obasanjo and the late President Muhammadu Buhari testified on behalf of Nigeria, and were thanked by President Tinubu for their “patriotism and support”. The president also praised the “tremendous efforts” of Attorney-General and Minister of Justice Prince Lateef Fagbemi and thanked other current and former ministers and officials involved.
Implications of the Ruling
Nigeria was represented in the arbitration by partners Elizabeth Oger-Gross and Tolu Obamuroh from Paul Hastings, as well as senior partner Olasupo Shasore and partner Oyinkansola Badejo-Okusanya from ALP NG & Co. The team’s efforts were praised by President Tinubu, who thanked them “for their professional and excellent defence of the country”.
International Arbitration
The ICC award came three years after Nigeria overturned the fraudulent P&ID arbitration which had threatened to cost the country USD 11 billion. The latest ruling is a significant victory for Nigeria’s efforts to defend its interests in international arbitration. As President Tinubu noted, “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”.
International law firm Clifford Chance represented Sunrise in the arbitration, with partners Alexandros Panayides and Jason Fry KC in London and Paris, senior associate Beatrice Bowles-Bray in London, and Pauline Lafleure-Höflich in Frankfurt. Nigerian law firm G Elias and French firm Solon also advised the company, with backing from third-party litigation funder Burford Capital.