Mambilla: Nigeria Wins $2.35bn Arbitration Battle Against Sunrise Power

Nigeria has won a major international arbitration battle over the long-delayed Mambilla Hydropower Project, with an International Chamber of Commerce tribunal rejecting a $2.35 billion claim brought by Sunrise Power and Transmission Company.

The tribunal, sitting in Paris, dismissed Sunrise Power’s claim that Nigeria breached contractual obligations connected to the development of the Mambilla project.

It also rejected a separate $400 million claim linked to a settlement agreement and ordered Sunrise Power and its promoter, Leno Adesanya, to reimburse Nigeria for 75 per cent of its legal fees and expenses.

The tribunal assessed Nigeria’s legal fees and expenses at about $11.82 million, meaning the reimbursement ordered is substantial.

Why the Case Mattered

The dispute has followed the Mambilla project for years. Sunrise commenced arbitration proceedings against Nigeria in October 2017 over an agreement dating back to 2003 for the development of the hydropower project in Taraba State.

The original proposal was for a 3,050MW project under a build-operate-transfer arrangement.

Subsequent plans and project specifications changed over the years as disputes, financing issues and contractual disagreements delayed implementation.

A 2020 settlement attempt also became part of the later dispute. The long-running disagreement eventually became a major international legal battle, with Sunrise seeking billions of dollars from Nigeria.

What the Latest Ruling Means

President Bola Tinubu described the ruling as the “single biggest legal hurdle” that had paralysed the Mambilla project for years.

ADVERTISEMENT

The legal victory removes a major dispute surrounding the project, but it does not by itself generate electricity or complete the Mambilla scheme.

That distinction matters. The project still requires financing, contractual arrangements, construction, transmission infrastructure and other technical and institutional steps before its planned power can reach Nigerian consumers.

ValidViewNetwork reports that the arbitration victory therefore settles a major legal dispute, but the much bigger infrastructure question remains: when will the Mambilla project move from years of litigation and contractual controversy to actual construction and electricity generation?

The tribunal’s decision is nevertheless significant for Nigeria because it rejects the major financial claims brought against the country and limits the immediate financial exposure arising from the dispute.

The case also forms part of a broader history of disputes surrounding the project, including questions about the original 2003 agreement, subsequent government decisions and the handling of later settlement arrangements.

For Nigeria, the latest ruling closes an important legal chapter. The next test is execution. ValidViewNetwork reports.