Nigeria Wins $2.35bn Mambilla Arbitration as ICC Rejects Sunrise Power Claim
Reported By Facthabournews
Nigeria has secured a major legal victory in the long-running dispute over the Mambilla Hydroelectric Power Project after an International Chamber of Commerce (ICC) arbitration tribunal in Paris ruled in favour of the Federal Government and rejected claims brought by Sunrise Power and Transmission Company Limited.
The award, issued on Thursday, September 17, 2026, relates to a dispute arising from agreements connected to the proposed Mambilla hydropower project in Taraba State. Sunrise Power had pursued compensation of about $2.35 billion from Nigeria over alleged contractual breaches.
The tribunal’s decision represents a significant development in the long-running dispute, which has been one of the major legal obstacles surrounding the development of the Mambilla power project.
According to the Presidency, the tribunal rejected Sunrise Power’s claims against the Federal Republic of Nigeria. It also ordered Sunrise Power and its promoter, Leno Adesanya, to reimburse Nigeria for 75 percent of its legal fees and expenses, amounting to approximately $11.82 million.
President Bola Ahmed Tinubu, reacting to the decision, said the ruling demonstrated Nigeria’s determination to defend its interests in international arbitration and protect the country’s commonwealth.
Tinubu commended Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, and officials of the Federal Ministry of Justice for their work in defending the country’s position.
He also praised the Nigerian defence team led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP for what he described as their professional handling of the case.
The President further acknowledged the contributions of former President Olusegun Obasanjo and the late former President Muhammadu Buhari, who testified during the proceedings. He also recognised former ministers Babatunde Raji Fashola and Suleiman Adamu, as well as other witnesses and experts who participated in the case.
The dispute dates back to a 2003 agreement involving Sunrise Power for the development of a major hydroelectric facility in Taraba State under a build-operate-transfer arrangement. The project was initially associated with a planned capacity of 3,050 megawatts and was valued at about $6 billion under the original arrangement.
The Mambilla project has remained stalled for years amid contractual and legal disputes. The disagreement eventually resulted in international arbitration proceedings, with Sunrise Power seeking billions of dollars in compensation.
The Federal Government had challenged the basis of the claims and maintained its position in the arbitration proceedings. The latest ICC award has now removed a major legal dispute hanging over the project.
President Tinubu described the ruling as the removal of the “single biggest legal hurdle” that had paralysed the Mambilla hydropower project for years.
The decision could therefore have implications beyond the arbitration itself, particularly for future efforts to revive the long-delayed hydropower project.
The Mambilla project is expected to play a significant role in Nigeria’s long-term electricity generation plans if successfully developed. Its proposed location in Taraba State and large generation capacity have made it one of the country’s most ambitious power infrastructure projects.
Tinubu said the government remained committed to working with genuine investors and honouring its legal obligations, while maintaining that Nigeria would continue to defend claims it considers detrimental to the country’s interests.
He also commended the National Security Adviser for his support and acknowledged the role of the Economic and Financial Crimes Commission in investigating issues connected to the matter.
The ICC ruling is not, however, a completion of the Mambilla project itself. It resolves a major arbitration dispute, while the financing, contractual arrangements, construction and other requirements necessary to develop the power project remain separate matters.
The Federal Government’s legal victory is consequently being viewed as an important step toward removing one of the longstanding legal obstacles associated with the project.
The latest development also underscores the importance of international arbitration in resolving major commercial disputes involving governments and private investors.
With the ICC tribunal having ruled in Nigeria’s favour, attention is now expected to shift toward the government’s next steps concerning the Mambilla Hydroelectric Power Project and whether the removal of the arbitration dispute will facilitate renewed efforts to advance the long-delayed project.
The ruling marks a major legal development in a dispute that has remained unresolved for years and could reshape the prospects of one of Nigeria’s most significant proposed power projects.
