The Nigerian government has secured a significant victory at the International Chamber of Commerce (ICC) arbitration tribunal in Paris. On 17 September 2026, the three-member tribunal rejected claims brought by Sunrise Power and Transmission Company Limited and its promoter, Leno Adesanya, in connection with the long-delayed Mambilla Hydroelectric Power Project in Taraba State.
The tribunal dismissed Sunrise’s request for a declaration that Nigeria breached contractual obligations under a settlement agreement and related addendum. It also rejected the company’s claim seeking payment of approximately $400 million (comprising a $200 million settlement sum plus a $200 million default sum). In the broader context of the dispute, Sunrise had been pursuing claims that, when combined with related proceedings seeking more than $2.7 billion in compensation and interest, represented a potential exposure for Nigeria exceeding $3 billion.
In addition to dismissing the claims, the tribunal ordered Sunrise Power and Leno Adesanya to reimburse Nigeria for 75 percent of its legal fees and expenses, quantified at roughly $11.82 million.
Of this amount, $2.5 million is to come from funds held in escrow by the ICC, with the balance of about $9.32 million payable by Sunrise and Adesanya, plus interest at 10 percent per annum compounded annually from the date of notification of the final award. The parties were also directed to share the arbitration costs, with Sunrise and Adesanya bearing 75 percent.
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President Bola Tinubu welcomed the ruling as a major success for Nigeria. In a statement, he described it as clearing “the single biggest legal hurdle that has paralysed the Mambilla hydro power project for years.” He praised the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, officials of the Federal Ministry of Justice, and the country’s external legal team led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP for their work. The President also acknowledged the contributions of former Presidents Olusegun Obasanjo and the late Muhammadu Buhari, who testified in the proceedings, as well as former ministers Babatunde Fashola and Suleiman Adamu and other witnesses and experts.
Background to the dispute
The roots of the case stretch back more than two decades. In 2003, during the administration of President Olusegun Obasanjo, a contract was signed for the construction of a large hydroelectric plant on the Mambilla Plateau in Taraba State under a build-operate-transfer arrangement. The project was originally conceived as a 3,050-megawatt facility (later referenced in some documents at higher capacity figures around 3,960 MW). Sunrise Power claimed rights under that agreement.
Nigeria has long maintained that the original contract lacked proper authorisation and validity.
Sunrise commenced ICC arbitration proceedings in October 2017, seeking roughly $2.35 billion for alleged breach of contract. Efforts to resolve the matter led to a 2020 settlement arrangement under which Nigeria was to pay $200 million, with provisions for penalties in case of default. When payment issues arose, Sunrise pursued further claims related to that settlement, escalating the financial exposure.
The arbitration process spanned nearly nine years and involved extensive hearings, including testimony from senior Nigerian figures. The final award of 17 September 2026 rejected the claims against the Federal Republic of Nigeria and confirmed that Leno Adesanya is bound by the relevant arbitration agreements.
Implications for the Mambilla project and Nigeria
The Mambilla Hydroelectric Power Project has been one of Nigeria’s most ambitious and delayed infrastructure initiatives. Once completed, it is expected to make a substantial contribution to the country’s electricity generation capacity and support broader economic development in the North-East and beyond. Legal uncertainty had been a major obstacle to progress for years.
President Tinubu emphasised that while Nigeria remains open to genuine investors and will honour legitimate legal obligations, it will firmly resist what he characterised as opportunistic or predatory claims against public resources. The ruling is viewed by the government as reinforcing Nigeria’s position in defending its interests in international arbitration and removing a key barrier to advancing the project.
This outcome follows a pattern of Nigeria successfully contesting large legacy claims in international forums in recent years. Details of the full award, including any remaining related proceedings, will continue to be monitored by legal and energy-sector observers.
The decision marks an important chapter in a complex dispute that has spanned multiple administrations. With the primary claims rejected and cost orders made in Nigeria’s favour, attention is expected to turn toward practical next steps for the Mambilla project itself.
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