FG Wins $3.38bn Mambilla Arbitration Case, 1,500MW Project Gets Lifeline
By Victor Idajili
The Federal Government has won a nearly nine-year arbitration case against Sunrise Power and Transmission Company Limited over the delayed 1,500 megawatts Mambilla Hydroelectric Power Project, defeating claims totalling over $3.38 billion.
The project was initially conceived as a 3,050MW plant in Taraba State, but was later reduced to 1,525MW and subsequently rescoped to about 1,500MW to make it financially viable and bankable for lenders.
President Bola Tinubu announced the victory in a State House statement on Thursday, saying an International Chamber of Commerce Tribunal in Paris issued an award in Nigeria's favour and dismissed Sunrise's claims.
The case began on October 10, 2017, when Sunrise instituted arbitration proceedings against Nigeria at the ICC International Court of Arbitration over alleged breach of a 2003 agreement for the development of the Mambilla project.
According to the Presidency, Sunrise demanded $680 million as settlement and interest in the latest case, in addition to another case where it is claiming over $2.7 billion in compensation and interest, bringing total exposure to over $3.38 billion.
The final award was issued on September 17, 2026.
Tinubu said the ruling has removed a major obstacle to the project.
"Today's ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydro power project for years," he said.
According to details of the award, the three-member tribunal dismissed Sunrise's claim that Nigeria breached its obligations under a settlement agreement and addendum signed by both parties.
The tribunal also rejected Sunrise's request for an order compelling Nigeria to pay $400 million, comprising $200 million settlement sum and $200 million claimed as default payment.
The tribunal further held that Sunrise promoter, Leno Adesanya, was bound by the arbitration agreement and that it had jurisdiction over Nigeria's counterclaim against him and the company.
It ordered Sunrise and Adesanya to reimburse Nigeria 75 percent of its legal fees and expenses. Nigeria's legal fees were put at $11.82 million, with $2.5 million expected to be covered from funds held in escrow by the ICC, while Sunrise and Adesanya were ordered to pay the outstanding $9.32 million plus 10 percent annual interest compounded from the date of notification until full payment.
Arbitration costs were fixed at $1.66 million, with Sunrise and Adesanya to bear 75 percent and Nigeria 25 percent.
The tribunal members were Melaine van Leeuwen as presiding arbitrator, with Stavros Brekoulakis and Simon Nesbitt as co-arbitrators. Nigeria was represented by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP.
Tinubu commended the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, the Ministry of Justice and the legal team for defending Nigeria's interest.
He also commended former President Olusegun Obasanjo and the late former President Muhammadu Buhari who testified for Nigeria, as well as former ministers Babatunde Fashola and Suleiman Adamu who appeared as witnesses.
"I commend the patriotism and support of former President Olusegun Obasanjo and late President Muhammadu Buhari who testified in the case, which dated back to an illegal 2003 contract to build a 3,050-megawatt hydroelectric plant in Taraba State under a build-operate-transfer model. The Federal Executive Council never authorised the contract," he said.
The President acknowledged the National Security Adviser and the Economic and Financial Crimes Commission for their support in the case.
The Mambilla project has suffered repeated delays due to legal disputes, financing challenges and changes in implementation. The original project cost was estimated at $5 billion to $5.8 billion, while the rescoped 1,500MW project is estimated at about $4 billion.
Tinubu said government would continue to honour legitimate contracts and work with genuine investors while defending the country against unjustified claims.
