The Attorney General of the Federation and Minister of Justice, Abdulateef Fagbemi SAN, has commended the International Chamber of Commerce tribunal in Paris for a significant victory for Nigeria in an international arbitration case. The case was instituted by Sunrise Power and Transmission Company Limited and its principal, Mr. Leno Adesanya, over the 3,050-megawatt Mambilla Hydroelectric Power Project. This project is one of the largest and most strategically important infrastructure projects in Nigeria's history.
In the arbitration, Sunrise demanded $400 million, comprising a settlement sum and a 'default sum' of $200 million each, plus interest at 10% per annum, compounded daily. Additionally, Sunrise had a pending claim for over $2.7 billion in a separate, parallel arbitration. The progress of the Mambilla Project has been hindered by Sunrise's litigation and arbitration against Nigeria, starting with a claim of an alleged Build-Operate-Transfer contract in 2003.
The financing of the Mambilla Project 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 of the economic benefits of 3,050 megawatts of clean, renewable hydroelectric power. The AGF stated that the cost of this delay, measured in lost power generation, foregone industrial output, and continued energy poverty, is incalculable.
On September 17, 2026, the ICC Arbitral Tribunal rendered its Final Award in favor of Nigeria, rejecting Sunrise's entire claim. 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 of Nigeria without presidential approval.
The Tribunal also found that the Settlement Agreement was a product of corruption and a violation of Nigerian public policy, making it unenforceable. Furthermore, the Tribunal discovered that Mr. Adesanya had engaged in a decades-long campaign of bribery and corruption involving large payments to senior Nigerian Government officials connected to the Mambilla Project.
The corrupt scheme, orchestrated by Mr. Adesanya, extended to the Settlement Agreements, with the Tribunal finding that a corrupt deal was reached between him and erstwhile senior Nigerian officials who signed the Settlement Agreement. The Tribunal ordered Sunrise and Mr. Adesanya to bear 75% of Nigeria's legal fees and expenses, plus interest at 10% per annum compounded annually.
The AGF acknowledged the leadership efforts of President Bola Ahmed Tinubu, who maintained that Nigeria should not succumb to fraudulently contrived contractual agreements and adverse claims. The AGF also expressed appreciation to the President for providing necessary financial and logistic support for the effective defense of this matter, reaffirming that the Federal Ministry of Justice will remain unwavering in its duty to safeguard the rule of law and defend Nigeria's legal interests.
Key points
- The ICC Arbitral Tribunal's Final Award rejected Sunrise's claim of $400 million and a pending claim of over $2.7 billion.
- The Tribunal found that the Settlement Agreement was a product of corruption and a violation of Nigerian public policy.
- Nigeria will not bear the majority of the costs; instead, Sunrise and Mr. Adesanya were ordered to bear 75% of Nigeria's legal fees and expenses.
