Precious Anga
Lagos — The Federal Government has secured a major legal victory in its nearly nine-year arbitration dispute with Sunrise Power and Transmission Company Limited, clearing a significant legal obstacle to the long-delayed 1,500MW Mambilla Hydroelectric Power Project in Taraba State.
An International Arbitration Tribunal under the International Chamber of Commerce, ICC, in Paris ruled in Nigeria’s favour on September 17, 2026, rejecting claims that could have exposed the country to more than $3.38bn in compensation, settlement payments and interest.
President Bola Tinubu confirmed the ruling in a statement on Thursday, describing the decision as a major breakthrough for the Mambilla project, which has faced years of legal, financing and implementation challenges.
“Today’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydro power project for years,” Tinubu said.
The dispute dates back to October 2017, when Sunrise commenced arbitration proceedings against Nigeria over an alleged breach of a 2003 agreement relating to the development of the project. According to the Presidency, Sunrise sought $680m in settlement and interest in the latest case, while a related claim sought more than $2.7bn in compensation and interest.
The tribunal dismissed Sunrise’s claim that Nigeria had breached its contractual obligations under a settlement agreement and an addendum. It also rejected the company’s request for an order requiring Nigeria to pay $400m, comprising a $200m settlement sum and another $200m claimed as a 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 Adesanya and Sunrise.
Sunrise and Adesanya were ordered to reimburse Nigeria for 75 per cent of the legal fees and expenses incurred in defending the case. Nigeria’s legal costs were put at $11.82m, with $2.5m expected to be covered from funds held in escrow by the ICC, while the remaining $9.32m is to be paid by Sunrise and Adesanya, with 10 per cent annual compound interest from the date of notification of the final award.
The arbitration costs were fixed at $1.66m, with Sunrise and Adesanya responsible for 75 per cent and Nigeria for the remaining 25 per cent.
The Mambilla project was originally conceived as a 3,050MW hydroelectric plant under a build-operate-transfer arrangement. The Federal Government later reduced the planned capacity to about 1,525MW and subsequently rescoped it to approximately 1,500MW to reduce costs and make the project financially viable and acceptable to lenders.
The project has remained largely stalled despite successive administrations identifying it as a strategic addition to Nigeria’s electricity generation capacity. Legal disputes, financing difficulties and changes to its implementation structure have been among the major obstacles, alongside the need to complete financing arrangements with the Export-Import Bank of China.
Tinubu commended Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, the Federal Ministry of Justice, Nigeria’s legal team and officials involved in defending the country’s position. He also acknowledged former Presidents Olusegun Obasanjo and the late Muhammadu Buhari, as well as former ministers Babatunde Fashola and Suleiman Adamu, for their roles as witnesses in the proceedings.
“I want to assure you that while our country remains committed to partnering with genuine investors and honouring its legal obligations, it will continue to defend all opportunistic claims instituted against our commonwealth strongly,” the President said.
