MAMBILLA POWER PROJECT: NIGERIA WINS ICC ARBITRATION, $3.38BN CLAIMS REJECTED
Tinubu says ruling clears major legal hurdle for Taraba’s long-delayed hydropower project
By Our Correspondent
Nigeria has secured a major legal victory in the long-running dispute surrounding the Mambilla Hydroelectric Power Project in Taraba State, after an International Chamber of Commerce (ICC) arbitration tribunal sitting in Paris rejected claims brought by Sunrise Power and Transmission Company Limited.
The tribunal issued its award on Thursday, September 17, 2026, ruling in favour of Nigeria in the arbitration involving Sunrise Power, the Federal Government and Leno Adesanya.
The dispute is linked to the proposed Mambilla Hydroelectric Power Project, one of Nigeria’s major planned power projects, which has remained stalled amid prolonged contractual and legal disputes.
According to a statement by President Bola Ahmed Tinubu, Sunrise had demanded $680 million as a settlement sum and interest in connection with another arbitration in which it was seeking more than $2.7 billion in compensation and interest over disputes associated with the development of the Mambilla project.
The combined claims have been reported as amounting to about $3.38 billion.
TINUBU: RULING CLEARS MAJOR HURDLE
President Tinubu welcomed the tribunal’s decision, describing it as a significant development in the government’s efforts to resolve the legal issues surrounding the Mambilla project.
“Today’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydro power project for years,” the President said in his September 17 statement.
The President commended the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, and officials of the Federal Ministry of Justice for their role in the case.
He also praised Nigeria’s defence team, led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP, for defending the country’s position before the tribunal.
DISPUTE DATES BACK TO 2003
The dispute traces back to a 2003 agreement concerning the proposed construction of a hydroelectric power plant in Taraba State under a build-operate-transfer arrangement.
President Tinubu said the original agreement was for a 3,050-megawatt plant and maintained that the Federal Executive Council had not authorised the contract.
The broader Mambilla project is subsequently described by the Federal Government as a 3,960-megawatt hydropower project.
Sunrise later commenced arbitration proceedings over the contractual dispute, leading to a series of legal battles involving successive Nigerian administrations.
OBASANJO, BUHARI TESTIFIED
President Tinubu also acknowledged the contributions of former President Olusegun Obasanjo and the late President Muhammadu Buhari, who testified in the case.
He further commended former Ministers of Power Babatunde Fashola, SAN, and Suleiman Adamu, as well as other witnesses and experts who participated in the proceedings.
Tinubu also acknowledged the support of the National Security Adviser and the role of the Economic and Financial Crimes Commission in investigating the matter.
IMPLICATION FOR MAMBILLA PROJECT
The ICC ruling removes a major legal obstacle that has been associated with the Mambilla project for years.
Recent reports on the tribunal’s decision indicate that the panel rejected Sunrise’s claims arising from a 2020 settlement agreement and also dismissed its demand for a $400 million payment under that agreement. The tribunal further ordered Sunrise and its promoter, Leno Adesanya, to reimburse Nigeria a substantial portion of its legal expenses.
The ruling, however, does not by itself amount to the physical commencement of construction of the Mambilla project; rather, it resolves a significant arbitration dispute surrounding the project.
The Mambilla Hydroelectric Power Project, located in Taraba State, is expected to have major implications for Nigeria’s electricity generation capacity if eventually completed.
President Tinubu reaffirmed that Nigeria remained committed to working with genuine investors and honouring its legal obligations, while defending the country’s interests in claims against its commonwealth.
