Nigeria has secured a significant victory in the long-standing dispute over the Mambilla Hydroelectric Power Project, with an International Chamber of Commerce (ICC) tribunal rejecting a $400 million claim by Sunrise Power and Transmission Company Limited and its principal, Leno Adesanya. The tribunal's final award, delivered on September 17, 2026, found that a settlement agreement relied upon by Sunrise was not binding on the Federal Government due to lack of presidential approval.
The dispute centered on the Mambilla project, one of Nigeria's largest proposed infrastructure schemes, with an installed capacity of 3,050 megawatts. Sunrise had demanded $400 million from Nigeria, comprising a $200 million settlement sum and another $200 million described as a "default sum", in addition to interest at 10 percent annually, compounded daily. The claim was separate from another arbitration in which Sunrise is seeking more than $2.7 billion from Nigeria.
According to the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, the dispute originated from Sunrise's claim to a Build-Operate-Transfer contract dating back to 2003. The dispute generated court proceedings in 2007 and further arbitration proceedings, with the government maintaining that the prolonged legal battles contributed to delays in securing financing and achieving financial close for the Mambilla project.
The Federal Government stated that financing from the China Export-Import Bank was conditioned on the resolution of the disputes surrounding the project. Fagbemi said the prolonged delay denied Nigeria the potential economic benefits of 3,050 megawatts of hydroelectric power, including increased electricity generation and industrial output. The Mambilla project's delay has had significant implications for Nigeria's energy sector.
The ICC tribunal's ruling went beyond the question of contractual authority, making findings concerning alleged corruption surrounding the settlement. The tribunal found that Adesanya engaged in a prolonged pattern of bribery and corruption involving payments to senior Nigerian government officials connected with the Mambilla project. A corrupt agreement was reached between Adesanya and former senior Nigerian officials involved in the settlement that formed the basis of the arbitration.
As a consequence of the findings, Sunrise and Adesanya were ordered to bear 75 percent of Nigeria's legal fees and expenses, together with interest at 10 percent annually, compounded annually. The tribunal expressed hope that the award would deter Adesanya and his companies from pursuing further proceedings against Nigeria that it considered frivolous. Fagbemi described the ruling as a significant vindication of Nigeria's position.
The Attorney-General credited President Bola Ahmed Tinubu with maintaining the position that Nigeria should not succumb to fraudulently contrived contractual agreements and claims arising from them. The President ensured the provision of financial and logistical support for Nigeria's defence of the arbitration. The latest award represents a major ruling in one chapter of the protracted dispute, while the broader legal history surrounding the project remains unresolved.
Key points
- The ICC tribunal rejected a $400 million claim by Sunrise Power and Transmission Company Limited, citing a corrupt settlement deal.
- The tribunal found that the settlement agreement was tainted by corruption and violated Nigerian public policy, making it unenforceable.
- The ruling does not resolve the separate arbitration in which Sunrise is seeking more than $2.7 billion in connection with the Mambilla project.
