A three-member arbitration tribunal under the International Chamber of Commerce in Paris has dismissed claims brought by Sunrise Power and Transmission Company Ltd against the Federal Republic of Nigeria. The tribunal ordered Sunrise and its promoter, Leno Adesanya, to reimburse most of the $11.82 million Abuja spent defending itself. This ruling is a significant victory for Nigeria, which has spent years on the losing end of contract disputes.
President Bola Tinubu has celebrated the award, calling it a rebuke to "predatory" claimants. He signed a statement personally, expressing his gratitude to those involved in the case, including Attorney-General Lateef Fagbemi, the Justice Ministry, and the Economic and Financial Crimes Commission. The president's statement highlights the importance of this victory, not just as a legal win but also as a political statement.
The tribunal's decision was based on established facts, rejecting Sunrise's claim that Nigeria breached its contractual obligations under a 2003 agreement for the Mambilla Hydroelectric Power Project in Taraba State. The panel also shifted the bulk of Nigeria's legal costs onto the claimant and its promoter. Furthermore, the tribunal found that Adesanya had systematically sought to stop the true nature of certain payments from coming to light.
The finding that Adesanya concealed the nature of payments is significant, as it forms the foundation of Nigeria's narrative of "corrupt" claimants. This adverse finding on the claimant's conduct is not just a contract dispute; it has implications for the integrity of the original contract. The presidency's language about "enablers and funders" suggests that this case may have far-reaching consequences.
Despite the victory, the presidency's claim that the ruling "clears the single biggest legal hurdle" for the Mambilla project may be premature. A second and larger proceeding is still ongoing, with Sunrise claiming over $2.7 billion in compensation and interest. The outcome of this second arbitration will ultimately decide whether the presidency's triumph holds.
This victory is part of a larger trend of state wins for Nigeria. In 2023, the English High Court set aside arbitral awards that had exposed Nigeria to over $11 billion, citing serious irregularities, including fraud. The UK Supreme Court confirmed Nigeria's position on costs in 2025. These cases signal a state that has stopped paying by default and started litigating to win.
The success of this strategy, built on proving that counterparties were corrupt, will depend on its disciplined application. The tribunal's finding of concealment is not a criminal conviction, and the presidency's language about "enablers and funders" outruns the public record on any named individual. The next steps will be crucial, including recovering costs from Sunrise and Adesanya and determining whether the tribunal's findings will lead to any prosecution.
Key points
- The Paris tribunal's dismissal of Sunrise Power's claim against Nigeria marks a significant victory for the country.
- The outcome of a second arbitration, in which Sunrise is claiming $2.7 billion, will ultimately determine the presidency's triumph.
- Nigeria's strategy of litigating to win and proving that counterparties were corrupt will be tested by its disciplined application and the enforcement of the tribunal's findings.
