Mambilla project: Sunrise Power to refund $11.2m, as Nigeria secures landmark victory

Nigeria has secured a major legal victory against Sunrise Power and Transmission Company Limited after the International Chamber of Commerce (ICC) arbitration tribunal in Paris dismissed the firm’s $2.35 billion claim over the Mambilla Hydroelectric Power Project.

In a unanimous decision signed by a three-member panel, the tribunal rejected Sunrise Power’s demand for a declaration that the Federal Government breached its contractual obligations under a disputed settlement agreement and its addendum.

The tribunal also threw out the firm’s request to compel Nigeria to pay $400 million, which comprised a $200 million settlement sum and an additional $200 million default penalty.

In a decisive blow to the claimant, the panel ruled that Sunrise Power and its promoter, Leno Adesanya, must refund Nigeria $11.82 million in legal fees and defense costs. 

The tribunal determined that Adesanya is personally bound by the arbitration agreement and affirmed its jurisdiction over Nigeria’s counterclaims against both him and the company.

The arbitration stems from Sunrise Power’s long-standing assertion that the administration of former President Olusegun Obasanjo awarded it a $6 billion build-operate-transfer (BOT) contract in May 2003 to develop the 3,960-megawatt Mambilla power plant in Taraba State.

Alleging a breach of contract by the Federal Government, the company initiated arbitral proceedings seeking $2.35 billion to cover expenses allegedly incurred on legal, financial, and technical consultants.

However, the Federal Government consistently challenged the legitimacy of the deal. In January 2025, former Presidents Olusegun Obasanjo and Muhammadu Buhari testified before the ICC tribunal, reaffirming that the Federal Executive Council never approved or signed a valid contract with Sunrise Power in the first place.

Nigeria was represented by a legal team led by Elizabeth Oger-Gross and Tolu Obamuroh of the international law firm Paul Hastings LLP.

The ruling frees Nigeria from the looming financial liability of $2.35 billion, putting an end to years of protracted arbitration over the long-stalled hydropower project.