The Federal Government has won a nearly nine-year international arbitration battle against Sunrise Power and Transmission Company Limited over the long-delayed 1,500MW Mambilla Hydroelectric Power Project, defeating claims that could have exposed Nigeria to more than $3.38 billion in liabilities.
The project was originally conceived as a 3,050MW hydroelectric plant in Taraba State. The Federal Government later cut the planned capacity by about half to 1,525MW before subsequently rescoping it to about 1,500MW to make the project financially viable and “bankable” for lenders.
President Bola Tinubu confirmed the victory in a State House statement on Thursday, saying an International Arbitration Tribunal constituted under the auspices of the International Chamber of Commerce in Paris had ruled in Nigeria’s favour and rejected Sunrise’s claims.
The dispute dates back to October 10, 2017, when Sunrise commenced arbitration proceedings against Nigeria at the ICC International Court of Arbitration over an alleged breach of a 2003 agreement relating to the development of the Mambilla project.
According to the Presidency, Sunrise sought $680 million in settlement and interest in the latest arbitration. The company is also pursuing a separate claim for more than $2.7 billion in compensation and interest over disputes linked to the project.
Together, the two related claims put Nigeria’s potential exposure at more than $3.38 billion.
The final award was issued on September 17, 2026, almost nine years after Sunrise initiated the proceedings.
Tinubu said the ruling had removed a major legal obstacle that had hindered progress on the multibillion-dollar project.
“Today’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydro power project for years,” the President said.
Tribunal rejects Sunrise claims
Details of the award reported earlier by TheCable showed that the three-member tribunal dismissed Sunrise’s claim that Nigeria had breached its contractual obligations under a settlement agreement and an addendum entered into by the parties.
The tribunal also rejected Sunrise’s request for an order compelling Nigeria to pay $400 million, comprising a $200 million settlement sum and a further $200 million claimed as a default payment.
The tribunal further held that Sunrise promoter Leno Adesanya was bound by the arbitration agreement with Nigeria under the settlement agreement and addendum.
It consequently found that it had jurisdiction over Nigeria’s counterclaim against Sunrise and Adesanya.
The tribunal ordered Sunrise and Adesanya to reimburse Nigeria for 75 per cent of the legal fees and expenses incurred in defending the arbitration.
Nigeria’s legal costs were put at $11.82 million, of which $2.5 million is expected to be covered from funds held in escrow by the ICC and released following notification of the final award.
Sunrise and Adesanya were ordered to pay the remaining $9.32 million, together with interest at an annual rate of 10 per cent, compounded annually from the date of notification of the final award until payment is made in full.
The arbitration costs were fixed at $1.66 million, with Sunrise and Adesanya responsible for 75 per cent and Nigeria for the remaining 25 per cent.
TheCable identified the tribunal members as Melaine van Leeuwen, who presided over the panel, and co-arbitrators Stavros Brekoulakis and Simon Nesbitt.
Nigeria was represented by a legal team led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP.
Tinubu commended Attorney-General of the Federation and Minister of Justice Lateef Fagbemi and officials of the Federal Ministry of Justice for their handling of the dispute.
He also praised Nigeria’s legal team for its defence of the country’s interests.
“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,” Tinubu said.
Tinubu hails former presidents
The President also commended former President Olusegun Obasanjo and the late former President Muhammadu Buhari, who testified for Nigeria during the arbitration.
“I commend the patriotism and support of former President Olusegun Obasanjo, GCFR, and late President Muhammadu Buhari, GCFR, who testified in the case, which dated back to an illegal 2003 contract to build a 3,050-megawatt hydroelectric plant in Taraba State under a build-operate-transfer model. The Federal Executive Council never authorised the contract,” Tinubu said.
He also acknowledged former ministers Babatunde Fashola and Suleiman Adamu, who appeared as witnesses, as well as the experts involved in Nigeria’s defence.
Tinubu further commended the National Security Adviser for supporting the government’s case and the Economic and Financial Crimes Commission for investigating the dispute.
Two decades of delays
The dispute has its roots in a 2003 agreement for the development of the Mambilla project. The contract provided for the construction of a 3,050MW hydroelectric plant in Taraba State under a build-operate-transfer arrangement.
In 2016, then Minister of Power, Works and Housing Babatunde Fashola described the project as one capable of generating about 3,000MW.
But in February 2021, then Minister of Power Saleh Mamman announced that the Federal Government had reduced the planned capacity by about half, from 3,050MW to approximately 1,525MW.
The government said the move was aimed at reducing the project cost by about $1 billion and improving its financial viability.
In July 2021, Mamman told the Senate Committee on Power that the project had subsequently been rescoped to 1,500MW to make it “bankable” and acceptable to lenders.
He said the original 3,050MW design was no longer considered financially viable under prevailing market conditions.
The original project was estimated to cost between $5 billion and $5.8 billion, while the rescoped 1,500-1,525MW project was estimated at about $4 billion.
The parties attempted to settle their differences through a settlement agreement in 2020. However, disagreements over its implementation resulted in further arbitration, with Sunrise seeking payment from the Federal Government over what it alleged was a failure to honour the agreement.
The Mambilla project has remained largely on the drawing board despite successive administrations identifying it as a key component of efforts to expand Nigeria’s electricity generation capacity.
Legal disputes, financing difficulties and changes to implementation arrangements have repeatedly delayed the project.
A Federal Ministry of Power implementation document identified the arbitration, completion of financing arrangements with the Export-Import Bank of China and the need to rescope the project among the key challenges affecting its execution.
Tinubu said the government would continue to honour legitimate contractual obligations and work with genuine investors while defending the country against claims it considers unjustified.
“I want to assure you that 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,” the President said.
The arbitration victory comes amid Nigeria’s efforts to defend itself against multibillion-dollar international claims arising from disputed government contracts.
In 2023, Nigeria secured another major legal victory when a United Kingdom court set aside an $11 billion arbitration award obtained by Process & Industrial Developments Limited over a failed gas processing agreement.
Power sector financing challenges persist
The development comes as concerns over Nigeria’s stalled investment in major power projects continue.
The Telegraph previously reported that Justice James Omotosho of the Federal High Court sentenced former Minister of Power Saleh Mamman to 75 years in prison in absentia in a N33.8 billion money-laundering and fraud case brought by the Economic and Financial Crimes Commission.
The judge also ordered Mamman to refund the outstanding balance of the N22 billion that prosecutors established had been diverted from funds intended for the Mambilla and Zungeru hydroelectric projects.
Former Minister of Power Prof. Barth Nnaji recently assessed the state of Nigeria’s power sector, attributing more than a decade of stalled investment to policy inconsistency, weak infrastructure development and the discontinuation of a financing framework that had helped attract international capital into electricity generation.
Nnaji spoke in Lagos at the 2026 conference of the Nigerian Association for Energy Economics, where he discussed Nigeria’s future energy mix, the role of natural gas, financing constraints facing major projects and the prolonged delays surrounding strategic assets such as the Mambilla project.
He said Nigeria had gone 11 years without financing a new major power plant, attributing the situation to the dismantling of a government-backed financing support mechanism introduced during his tenure as minister.
Nnaji also argued that Nigeria needs a pragmatic approach to the energy transition, particularly in light of recent global developments.
