Nigeria Wins Arbitration Case Against Sunrise Power

Nigeria wins arbitration case against Sunrise Power in a dispute linked to the long-delayed Mambilla Hydroelectric Power Project in Taraba State. The case involved claims brought against the Federal Government. An International Chamber of Commerce (ICC) arbitration tribunal sitting in Paris issued an award in favour of Nigeria on September 17, rejecting claims brought by Sunrise Power. Sunrise had demanded $680 million from Nigeria as a settlement sum and interest in connection with another arbitration over the Mambilla project, where the company is seeking more than $2.7 billion in compensation and interest.

Tribunal Rejects Sunrise Power Claims

The latest ruling also dismissed Sunrise Power’s claim for $400 million linked to a 2020 settlement agreement. The settlement had provided for a $200 million payment, alongside a $200 million default sum after the payment was not made. However, the tribunal rejected Sunrise’s demand for the combined $400 million. The tribunal further ordered Sunrise Power and its promoter, Leno Adesanya, to bear 75 per cent of Nigeria’s arbitration costs. Nigeria was awarded about $11.82 million in legal fees and expenses, with part of the amount to be recovered from funds held in escrow by the ICC. The dispute dates back to the proposed Mambilla Hydroelectric Power Project. The project has faced legal and contractual disputes for years.

Nigeria Wins Arbitration Case as Tribunal Rejects Sunrise Power Claims

The Federal Government originally planned the Mambilla project as a 3,050-megawatt hydroelectric plant under a build-operate-transfer arrangement. The Federal Government later revised the project’s proposed capacity as part of efforts to make it more financially viable. President Bola Tinubu reacted to the arbitration decision. He described the ruling as clearing the “single biggest legal hurdle” that had stalled the Mambilla project for years. The President commended Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi. He also praised the Federal Ministry of Justice and Nigeria’s external legal team. The ruling marks a major development in the long-running Mambilla dispute. However, other legal and administrative issues surrounding the project remain separate.