Mambilla: Tinubu Hails Nigeria’s Victory in $2.35bn ICC Arbitration - THISDAYLIVE
•Court says Atiku’s wife got $500,000, Agunloye received N5.2m
•Orders firm to reimburse Nigeria $11.8m legal fees
Nigeria has secured another major victory in a string of high-stakes international legal battles, with the International Chamber of Commerce (ICC) tribunal in Paris yesterday throwing out a $2.35 billion claim by Sunrise Power and Transmission Company Limited over the long-delayed Mambilla Hydroelectric Power Project.
The ruling also rejected a separate $400 million settlement claim and ordered Sunrise and its promoter, Leno Adesanya, to reimburse Nigeria about $11.82 million in legal fees and expenses.
The panel, according to a 620-page document containing the proceedings, which was seen by THISDAY, was chaired by Melaine van Leeuwen, with Simon Nesbitt and Stavros Brekoulakis serving as co-arbitrators.
An excited President Bola Tinubu, in a statement personally signed by him, described the development as the “single biggest legal hurdle” that had paralysed the 3,960MW Mambilla project in Taraba for years.
However, the outcome adds to a series of significant legal victories or favourable outcomes for Nigeria in the last three years. Most notable of them was the successful challenge of the massive claim arising from the Process and Industrial Developments (P&ID) gas project dispute.
In 2023, the English High Court set aside arbitral awards that had exposed Nigeria to a liability of more than $11 billion after finding serious irregularities, including fraud, in the procurement of the awards. The UK Supreme Court subsequently dealt with a costs appeal in 2025, confirming Nigeria’s successful position in the underlying challenge.
The federal government also recently secured the dismissal of a $6.2 million international arbitration claim by European Dynamics UK Limited over a national electronic procurement project, while a separate tribunal in 2025 dismissed claims by French company Fougerolle relating to the Ajaokuta Steel Complex, including claims of about N3.8 billion and €185.7 million.
Against that background, Tinubu, in yesterday’s statement, said the Mambilla award affirmed Nigeria’s determination not to succumb to what he described as “predatory and exploitative claims” by local and international entities and their enablers and funders.
The president welcomed the fact that the ICC tribunal rejected Sunrise’s claims arising from disputes over the proposed project in Taraba State, including its contention that Nigeria breached contractual obligations under a settlement agreement and subsequent addendum.
He also described the underlying 2003 agreement for the construction of the hydroelectric plant under a Build Operate Transfer (BOT) arrangement as illegal, reiterating that the Federal Executive Council (FEC) never authorised the contract.
Tinubu commended the Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi, Federal Ministry of Justice, as well as the Nigerian defence team led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP, for their roles in the case.
He equally praised former President Olusegun Obasanjo and the late President Muhammadu Buhari, who testified during the proceedings, alongside former ministers Babatunde Fashola (SAN) and the National Security Adviser (NSA) as well as the Economic and Financial Crimes Commission (EFCC).
According to the President, Sunrise had demanded $680 million as a settlement sum and interest in connection with another arbitration in which the company was claiming more than $2.7 billion in compensation and interest over disputes associated with the development of the almost 4,000MW Mambilla Hydroelectric Power Project.
Tinubu recalled that the dispute dated back to a 2003 contract for the construction of the hydroelectric plant in Taraba State under a build-operate-transfer arrangement which, he said, was never authorised by the Federal Executive Council (FEC).
He stressed that Nigeria remained committed to genuine investors and to honouring its legal obligations, but would continue to defend claims against the country’s commonwealth.
“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 strongly defend all opportunistic claims instituted against our commonwealth strongly,” he said.
In the same vein, he stated that the road has now been cleared for the continuation of the project. “Today’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydro power project for years,” the President emphasised.
In all, the final award rejected Sunrise’s claim that Nigeria had breached its obligations under the settlement agreement and an addendum. The tribunal also rejected the company’s demand for $400 million, comprising a $200 million settlement sum and a further $200 million default sum.
It further held that Adesanya, the promoter of Sunrise, was bound by the arbitration agreement with Nigeria under the settlement agreement and addendum, and that it had jurisdiction over Nigeria’s counterclaim against him and his firm.
In a major financial component of the ruling, Sunrise and Adesanya were ordered to reimburse Nigeria 75 per cent of the legal fees and expenses incurred in defending the arbitration, amounting to $11,819,506.51.
Of the sum, $2.5 million is to be released from funds held in escrow by the ICC, while the remaining $9,319,506.51 is to be paid by Sunrise and Adesanya, with interest at 10 per cent per annum, compounded annually, from notification of the final award until full payment.
The tribunal also fixed the arbitration costs at $1,656,500, with Sunrise and Adesanya responsible for 75 per cent, amounting to $1,242,375, while Nigeria bears the remaining 25 per cent.
Beyond the financial orders, the award also contained extensive findings concerning alleged payments and dealings involving Adesanya and various Nigerian officials over several administrations.
The tribunal found that Adesanya was personally responsible for what it described as persistent efforts to extract money from and exploit the Nigerian government through a “decades-long campaign of bribery and corruption”.
“Mr. Adesanya is personally responsible for the persistent efforts to extract money from and exploit the Nigerian government through a decades-long campaign of bribery and corruption that involved – often very large payments to several government officials who were either involved in the Mambilla Project or were hoped to be able to influence the decision-making around the project.
“In view of the gravity of Mr. Adesanya’s conduct and the fact that Mr. Adesanya is a repeat player, the Tribunal hopes that the cost award in this arbitration will deter Mr. Adesanya and his companies from bringing further frivolous legal proceedings against Nigeria,” the court ruled.
It added: “On both the claims and the counterclaim: (It is ordered) that Sunrise and Mr. Adesanya shall bear their own legal fees and expenses; Sunrise and Mr. Adesanya to reimburse to Nigeria 75 per cent of the legal fees and expenses incurred by Nigeria in this arbitration of USD 11,819,506.51.
“Of the total amount of USD 11,819,506.51, USD 2,500,000 will be covered directly from the amount held in escrow by the ICC that will be released upon the notification of this Final Award, while Sunrise and Mr. Adesanya shall pay to Nigeria the remaining USD 9,319,506.51, plus interest on this amount accruing at an annual rate of 10 per cent, compounded annually, from the date of the notification of this Final Award until such amount is paid in full.”
Besides, the tribunal’s findings referred to alleged payments to or involving officials connected with the Mambilla project, including a reported $500,000 payment to the wife of former Vice President, Atiku Abubakar in 2003, payments of $5.6 million involving former Minister of Power Olu Agunloye and dealings involving former NSA, Sambo Dasuki.
The award also considered allegations involving former Solicitor General, Abdullahi Yola, and claims made by Adesanya concerning former Attorney General Abubakar Malami and former Minister of Power, Saleh Mamman. Mamman is currently serving a 75-year jail term.
“To that end, Nigeria argues that Sunrise and Mr. Adesanya bribed, sought to conceal those bribes, and conspired with the following high-ranking Nigerian government officials in order to unlawfully procure the 2003 BOT Contract.
“Mr. Atiku Abubakar (Vice-President of Nigeria): Mr. Adesanya paid USD500,000 to Mr. Abubakar’s wife shortly before the alleged award of the BOT contract to Sunrise occurred. Mr. Adesanya admitted to making the payment and acknowledged that Mr. Abubakar was a powerful official who could influence the contract of awards. The timing, the concealment efforts, and Vice President Abubakar’s support for Sunrise show that the payment was a bribe.
“Dr. Olu Agunloye (Minister of Power of Nigeria): Days before leaving office as the Minister of Power, on 22 May 2003, Minister Agunloye sent a letter to Sunrise, purportedly awarding a contract for the Mambilla Project to Sunrise, contrary to the decision not to approve, taken by the FEC two days prior (on 21 May 2003).
“Minister Agunloye received about NGN5.2 million in 2019 from Mr. Adesanya through an intermediary (Mr. Sotinrin), likely related to the ongoing GPEA Arbitration. The timing and concealment of these payments are indications of a corrupt relationship,” the court noted.
Furthermore, Nigeria argued that Sunrise and Adesanya bribed, tried to conceal the bribes, and conspired with other high-ranking Nigerian government officials to procure the 2012 General Project Execution Agreement (GPEA).
“Mr. Abdullahi Yola (Solicitor-General of Nigeria): In 2012, Mr. Yola represented the Ministry of Justice in the negotiations about the GPEA and the related terms of settlement and later signed these documents on behalf of the Ministry of Justice. On 23 November 2015, Mr. Yola received approximately USD50,000 from Mr. Adesanya via Lutin Investment, which amount exceeded his annual salary. According to Nigeria, this is evidence of corruption and conspiracy.
“Dr. Dere Awosika (Permanent Secretary of the Ministry of Power of Nigeria): In 2012, Dr. Awosika participated in the GPEA negotiations. Between 2015 and 2016 the company (355 Integrated Services Limited) of her son (Mr. Tola Awosika) received three payments from Lutin Investments, totalling about USD 135,000.
“Prof. Williams testified that it was ‘not a coincidence’ that Mr. Adesanya chose to invest in Dr. Awosika’s son’s start-up and noted that the sums involved were ‘considerable.’ According to Nigeria, these payments form strong evidence of corruption and conspiracy,” the court document seen by THISDAY said.
On the question of limitation, the tribunal rejected arguments that Nigeria’s counterclaims were statute-barred, finding that the alleged illicit transactions had been actively concealed.
The award stated that the tribunal was satisfied that Adesanya had “systematically sought to prevent the true nature of the payments from coming to light”.
Sunrise commenced arbitration before the ICC International Court of Arbitration on October 10, 2017, seeking about $2.354 billion over an alleged breach of the agreement for the proposed project, which was valued at about $6 billion.
The dispute subsequently produced a settlement agreement and addendum in 2020, leading to the later proceedings over the terms of the settlement.
Ex-President Obasanjo, who appeared as a witness during the proceedings, had denied authorising the original contract, pointing out in 2023 that no minister had the authority to commit his administration to a $6 billion project without presidential approval.
He said he had directed Agunloye to withdraw a memorandum on the project when it was presented to the FEC on May 21, 2003.
During his appearance, Buhari had also denied authorising the 2020 settlement agreement. In a letter to Fagbemi, he said that although ministers had engaged Sunrise and other stakeholders to resolve issues surrounding the project, he had never instructed them to conclude a settlement with the company.
Buhari said he rejected the proposed settlement when it was presented to him on April 20, 2020, because he believed there was no basis for Sunrise’s claim.
Founded on January 22, 1995, THISDAY is published by THISDAY NEWSPAPERS LTD., 35 Creek Road Apapa, Lagos, Nigeria with offices in 36 states of Nigeria , the Federal Capital Territory and around the world. It is Nigeria’s most authoritative news media available on all platforms for the political, business, professional and diplomatic elite and broader middle classes while serving as the meeting point of new ideas, culture and technology for the aspirationals and millennials. The newspaper is a public trust dedicated to the pursuit of truth and reason covering a range of issues from breaking news to politics, business, the markets, the arts, sports and community to the crossroads of people and society.
You can email us at: hello@thisdaylive.com or visit our contact us page.
