In a landmark legal victory that has been linked to President Bola Tinubu’s current diplomatic and working visit to France, Nigeria has secured a decisive win at the International Chamber of Commerce (ICC) in Paris. The tribunal dismissed a $2.35 billion arbitration claim brought by Sunrise Power and Transmission Company over the long-stalled Mambilla hydropower project.
The ruling, issued on Thursday by a three-member panel chaired by Melaine van Leeuwen, threw out Sunrise’s argument that the Federal Government breached its obligations under a 2020 settlement agreement. The tribunal also rejected the company’s separate demand for a $400 million settlement and default sum, finding no breach by Nigeria under either the original contract or the settlement agreement.
Beyond dismissing the claims, the panel ordered Sunrise and its promoter, Leno Adesanya, to personally bear responsibility for the dispute. The tribunal found Adesanya individually bound by the arbitration agreement, giving it jurisdiction over Nigeria’s counterclaim. Sunrise and Adesanya were directed to refund 75 percent of Nigeria’s legal costs — $11.82 million in total — with $2.5 million deducted from funds held in escrow by the ICC and the remaining $9.32 million to be paid directly, with 10 percent annual interest compounding from the notification date. Arbitration costs, fixed at $1.66 million, will also be split 75-25 in Nigeria’s favour.
The dispute traces back to a 2003 agreement for Sunrise to build the 3,050-megawatt Mambilla hydropower plant in Taraba State on a build-operate-transfer basis, valued at $6 billion. Former President Olusegun Obasanjo has repeatedly denied authorising the deal. Sunrise commenced arbitration at the ICC in October 2017, seeking $2.354 billion in damages for alleged breach of contract. A 2020 settlement attempt, which provided for a $200 million payment, later collapsed after former President Muhammadu Buhari said he refused to approve the deal.
The proceedings attracted significant attention, with former presidents Obasanjo and Buhari, as well as former ministers Babatunde Fashola and Suleiman Adamu, appearing as factual witnesses for Nigeria during hearings in January 2025.
President Tinubu, who arrived in Paris on Sunday for the second leg of his three-week working vacation in Europe, has yet to officially comment on the ruling. However, the timing of the verdict during his stay in the French capital has been widely noted. The Nigerian government’s legal team was led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP. The decision removes a significant financial liability hanging over one of Nigeria’s most ambitious power projects.