The International Chamber of Commerce tribunal in Paris has dismissed Sunrise Power's multibillion-dollar claims against Nigeria in the long-running Mambilla arbitration case. This development brings an end to a costly legal dispute that had been ongoing for 23 years. The case was brought by Sunrise Power and Transmission Company Limited over the Mambilla Hydroelectric Power Project in Taraba State. The tribunal's ruling is a significant victory for Nigeria, which had been battling inadequate electricity supply and struggling to attract massive capital required to expand generation.
The crisis began on May 21, 2003, when the Federal Executive Council considered a memo for the issuance of the Mambilla contract to Leno Adesanya and his company, Sunrise Power. The request was initially rejected, but Dr. Olu Agunloye, then Minister of Power and Steel, sent Adesanya a letter on May 22, 2003, indicating a preliminary approval for Sunrise to have a role in the construction of the Mambilla Hydroelectric Power Station with a value of $6 billion. However, Sunrise Power had no prior expertise on such projects or any real assets, raising concerns about its ability to undertake the project.
Former President Olusegun Obasanjo had challenged Agunloye's role in awarding the contract to Sunrise in 2003, stating that he had not given Agunloye permission to commit the government to a $6 billion project. Obasanjo noted that as president, no minister had the power to approve more than N25 million without express presidential consent. Agunloye had claimed that the project was awarded on a Build, Operate and Transfer basis, with Sunrise to source funds and execute the project with its own funds, recouping its investment from the sale of generated electricity over a 30- to 40-year period.
The project was initially awarded to Sunrise Power and Transmission Limited by the Obasanjo administration in 2003, with a 3,050 megawatts capacity at no cost to the Nigerian government. However, the project was terminated in 2008 by President Umaru Musa Yar'adua due to alleged corruption on the part of officials who served under Obasanjo between 2003 and 2007. The Economic and Financial Crimes Commission (EFCC) declared Agunloye wanted in December 2023 over allegations of fraud to the tune of $6 billion in the Mambilla hydropower contract.
Agunloye was arraigned before Justice Donatus Okorowo in January 2024, where he pleaded not guilty to the charges read against him. He was later remanded in Kuje Prison pending the perfection of his bail conditions. In September 2025, Agunloye was re-arraigned by EFCC before Justice Jude Onwuegbuzie of the Federal High Court sitting in Apo, Abuja, over an amended seven-count charge on alleged fraudulent award of the Mambilla Hydroelectric Power Project contract worth $6 billion.
The Mambilla Hydroelectric Power Project has been a long-standing ambition for Nigeria, with the potential to significantly boost the country's electricity generation. The project's revival is now expected to move forward, following the tribunal's ruling in favor of Nigeria. The government had been seeking to attract investment to complete the project, which has been stalled for several years due to disputes and controversies.
The victory in the arbitration case is expected to clear the way for the project to move forward, potentially unlocking significant economic benefits for Nigeria. The project has the potential to generate 3,050 megawatts of electricity, a significant boost to the country's power generation capacity. Key aspects of the case include the tribunal's dismissal of Sunrise Power's claims, the project's potential to boost Nigeria's electricity generation, and the government's efforts to attract investment to complete the project.
Key points
- The International Chamber of Commerce tribunal in Paris dismissed Sunrise Power's multibillion-dollar claims against Nigeria.
- The Mambilla Hydroelectric Power Project has the potential to generate 3,050 megawatts of electricity, a significant boost to Nigeria's power generation capacity.
- The project's revival is expected to move forward, following the tribunal's ruling in favor of Nigeria, potentially unlocking significant economic benefits for the country.
