How Nigeria win $3.38bn battle for 1500MW Mambilla Power Project

Nigeria govment don win international court gbege wey don last for more dan nine years, against one Sunrise Power and Transmission Company Limited, sake of di 1500MW Mambilla Hydroelectric Power Project, mata wey for put Nigeria for risk of paying more dan $3.38 billion in damages.

Di project bin originally start as a 3,050-megawatt hydroelectric plant for Taraba State, but di Federal Govment later reduce di planned capacity by about 50 per cent to 1525MW bifor dem come rejig am again to about 1500MW so e go dey financially viable and "bankable" for lenders.

President Bola Tinubu confam di victory for State House statement say di International Arbitration Tribunal under di auspices of di International Chamber of Commerce for Paris, France, issue award in Nigeria favour and reject di Sunrise claims.

Nigeria don dey struggle wit bad electricity for decades. Dia power sector don face plenty problems including old infrastructure, limited generation capacity, gas supply shortages and weaknesses for transmission and distribution.

Di proposed Mambilla project don dey planned for decades but bin dey on hold sake of contractual and legal disputes. Di project inital plan na to generate about 3,960 megawatts of electricity wen dem complete am.

Tinubu describe di ICC ruling as major step towards resolving di legal obstacles wey bin surround di project.

Despite say Nigeria na Africa largest economy, millions of Nigerians still dey suffer frequent power cuts and rely on petrol or diesel generators for electricity. Di govment don introduce several reforms and investments to improve supply, but power reliability still be major challenge.

How di mata start?

President Tinubu say di mata “date back to illegal 2003 contract to build a 3,050-megawatt hydroelectric plant for Taraba State unda a build-operate-transfer model. Di Federal Executive Council no eva authorise di contract.”

But di arbitration battle date back to 10 October 2017, wen Sunrise bin start proceedings against Nigeria for di International Court of Arbitration over alleged breach of di 2003 agreement wey concern di development of di Mambilla power project.

According to di Presidency, Sunrise bin demand $680m as a settlement sum and interest for di latest arbitration wey relate to anoda case wia dem bin dey claim more dan $2.7bn in compensation and interest over disputes wey dey associated with di development of di Mambilla project for Taraba State.

Combined, di two related claims put Nigeria potential exposure at more dan $3.38bn.

Di final award wey bin dey issued on 17 September 2026, come nearly nine years after di company start di arbitration proceedings against di Federal Govment.

Tinubu say di ruling don remove a major impediment wey bin prevent di multibillion-dollar power project from progressing.

"Di ICC ruling don clear di single biggest legal hurdle wey bin paralyse di Mambilla hydro power project for years," di President tok.

Wetin di ICC judgement tok?

Details of di award by di ICC show say di three-member tribunal dismiss Sunrise claim for a declaration say Nigeria breach dia contractual obligations under a settlement agreement and an addendum wey di parties bin enter..

Di tribunal also reject di company request for an order wey compel Nigeria to pay $400m, wey comprise of a settlement sum of $200m and anoda $200m dem claim as a default payment.

Di tribunal further declare say Sunrise promoter, Leno Adesanya, bin dey bound by di arbitration agreement wit Nigeria under di settlement agreement and addendum.

Di tribunal come hold say dem get jurisdiction over Nigeria counterclaim against Adesanya and Sunrise and order Sunrise and Adesanya to reimburse Nigeria for 75 per cent of di legal fees and expenses wey di kontri get in defending di arbitration.

Nigeria legal fees bin be $11.82m, and $2.5m dey expected to dey covered directly from funds dem hold in escrow by di ICC and e go dey released upon notification of di final award.

Sunrise and Adesanya also dey ordered to pay di outstanding $9.32m, along wit interest at an annual rate of 10 per cent, compounded annually from di date of notification of di final award until di amount is fully paid.

Di arbitration costs bin dey fixed at $1.66m, with Sunrise and Adesanya expected to bear 75 per cent while Nigeria go shoulder di remaining 25 per cent.

Di three members of di tribunal na Melaine van Leeuwen, wey bin preside over di panel, alongside Stavros Brekoulakis and Simon Nesbitt as co-arbitrators.

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

President Tinubu commend di Attorney-General of di Federation and Minister of Justice, Lateef Fagbemi, with officials of di Federal Ministry of Justice, for di way dem handle di dispute.

E also praise di kontri legal team for wetin e describe as dia professional defence of Nigeria interests.

"Dis latest decision affirm di Nigerian State determination not to succumb to predatory and exploitative claims by corrupt local and international entities and dia enablers and funders," Tinubu tok.

Dis no be di first time Nigeria go win international court mata against company wey dey accuse di govment of breach of contract.

In 2019, one court for di United Kingdom bin order Nigeria to pay one oil compan - P&ID - $9 billion as damages over one oil license agreement wey no later work.

By di time di Tinubu administration come into office by 2023, di moni don increase to $11 billion sake of interests wey e bin accumulate.

But by October 2023, Nigeria win di appeal of di mata as di UK appeal court rule say di agreement bin no pure and agree wit di Nigeria govment say plenty mago mago bin dey for di agreement.

Di court also order di company to pay back Nigeria di moni - running into millions of pounds - wey e cost dem to pay legal fees for di case.

In October 2025, di UK Supreme Court also affirm dat decision and insist say di company must to pay di moni in pound sterling, no be naira as dem bin wan do.