Nigeria Defeats Sunrise Power in $2.35bn Mambilla Arbitration.

Nigeria Defeats Sunrise Power in $2.35bn Mambilla Arbitration.

Nigeria has emerged victorious in its arbitration dispute with Sunrise Power over the long-running Mambilla Hydropower Project, after an International Chamber of Commerce (ICC) tribunal in Paris ruled against key claims brought by the company.

The tribunal rejected Sunrise Power’s demand for $2.35 billion in compensation from the Federal Government, ending a major financial claim linked to the disputed power project.

Sunrise Power had argued that it received a contract from the administration of former President Olusegun Obasanjo in 2003 to develop, operate and eventually transfer the Mambilla hydropower facility.

The company subsequently accused the Nigerian government of violating its contractual obligations and sought billions of dollars to cover expenses it said were incurred on financial and legal consultants.

In its ruling, the three-member tribunal dismissed Sunrise’s request for a declaration that Nigeria had violated the terms of a settlement agreement and a related addendum.

The panel also rejected the company’s demand for $400 million, which consisted of a $200 million settlement amount and a further $200 million default payment.

The tribunal further ruled that Leno Adesanya, promoter of Sunrise Power, is bound by the arbitration agreement contained in the settlement documents. It also affirmed its jurisdiction to hear Nigeria’s counterclaim against Adesanya and his firm.

The case had attracted testimony from former Presidents Olusegun Obasanjo and Muhammadu Buhari, who appeared before the ICC in January 2025. Both former leaders maintained that no contract for the project had been formally executed in the first place.

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

In addition to dismissing Sunrise Power’s major claims, the tribunal ordered Sunrise and its promoter to reimburse Nigeria $11.8 million in legal costs.

The ruling means Nigeria has avoided the potential $2.35 billion financial liability sought by Sunrise Power in connection with the Mambilla Hydropower Project.

The outcome marks a significant development in the protracted dispute, which has remained one of the major legal controversies surrounding Nigeria’s plans to develop the Mambilla hydropower project.