The Attorney-General of the Federation, Mr. Lateef Fagbemi, has stated that Nigeria will not be a soft target for predatory litigation and arbitration. This statement was made in response to Nigeria's victory in the International Arbitration case instituted by Sunrise Power and Transmission Company Limited and its principal, Mr. Leno Adesanya. The verdict, delivered by a Tribunal of the International Chamber of Commerce in Paris on September 17, was a complete and resounding vindication of Nigeria's position.
The arbitration case was related to the 3,050 megawatt Mambilla Hydroelectric Power Project, one of Nigeria's largest and most strategically important infrastructure projects. Sunrise had demanded $400 million, comprising a settlement sum and a default sum of $200 million each, plus interest at 10 percent per annum compounded daily. Additionally, the company had a pending claim of over $2.7 billion in a separate, parallel arbitration. The progress of the Mambilla Project has been delayed for over two decades due to Sunrise's relentless litigation and arbitration against Nigeria.
The Mambilla Project's financing by the China Export-Import Bank was conditioned on the resolution of these disputes. As a result, the project has been unable to achieve financial close, depriving Nigeria and its people of the enormous economic benefits of 3,050 megawatts of clean, renewable hydroelectric power. The cost of this delay, measured in lost power generation, foregone industrial output, and continued energy poverty, is incalculable. The project has been stalled since 2003, when Sunrise claimed an alleged Build-Operate-Transfer contract.
The tribunal found that the Settlement Agreement and the Addendum thereto were not binding on Nigeria, as the former Nigerian ministers who signed them lacked the requisite authority to commit and bind the Federal Government without presidential approval. Furthermore, the settlement agreement was found to be a product of corruption and a violation of Nigerian public policy, making it unenforceable. This ruling marked a significant victory for Nigeria, as it rejected Sunrise's claims.
The tribunal also discovered that Adesanya had engaged in a decades-long campaign of bribery and corruption, often involving large payments to several senior Nigerian government officials connected to the Mambilla Project. The corrupt scheme, orchestrated by Adesanya, extended to the settlement agreements, with the tribunal finding that a corrupt deal was reached between Adesanya and the erstwhile senior Nigerian officials who signed the settlement agreement.
The tribunal noted that Adesanya's pattern of corrupt dealings extended back to the origins of the Mambilla dispute. This pattern forms what the tribunal described as an established modus operandi of engaging with influential Nigerians. The Attorney-General's statement emphasized that Nigeria will not be a soft target for predatory litigation and arbitration, highlighting the government's commitment to protecting the country's interests.
The victory in the International Arbitration case marks a significant milestone for Nigeria, as it upholds the country's position and rejects Sunrise's claims. The case highlights the importance of transparency and accountability in business dealings and the government's efforts to protect Nigeria's interests. The Mambilla Project remains a strategic priority for Nigeria, and the government is expected to move forward with the project.
Key points
- Nigeria wins International Arbitration case against Sunrise Power and Transmission Company Limited
- The case was related to the 3,050 megawatt Mambilla Hydroelectric Power Project
- The tribunal found that the Settlement Agreement was a product of corruption and a violation of Nigerian public policy
