Mambilla: ICC dismisses $400 million claim against Nigeria

The panel of three arbitrators dismissed the argument that Nigeria had violated the 2020 settlement agreement and its amendment. They also determined that Sunrise’s promoter, Leno Adesanya, was bound by the arbitration agreement and that the tribunal had jurisdiction to consider Nigeria’s counterclaim against him and the company.

Sunrise and Leno Adesanya will bear 75% of the legal fees and expenses imposed on them in the ruling. The amount to be refunded to Nigeria is set at $11.82 million, of which $2.5 million must come from funds already held in escrow with the ICC. The remaining $9.32 million is to be paid with an annual interest rate of 10%, compounded until full payment is made.

The ruling also sets the arbitration costs at $1.66 million, allocated 75% to Sunrise and Leno Adesanya and 25% to Nigeria. However, it does not resolve all litigation related to Mambilla. In a statement signed by President Bola Tinubu, the presidency noted that Sunrise was claiming $680 million, including interest, in connection with another proceeding in which the company seeks over $2.7 billion in compensation and interest.

Bola Tinubu characterized the September 17 decision as the removal of the main legal obstacle that had stalled the Mambilla project. The Nigerian president recalled that the dispute dates back to a contract signed in 2003 for a 3,050 MW plant under a build, operate, and transfer scheme. He asserted that this contract had never been authorized by the Federal Executive Council.

Sunrise initiated international arbitration in 2017 regarding the 2003 contract, prior to reaching a settlement agreement in 2020. The ruling issued on September 17 addresses the claims examined in this proceeding, while the Nigerian presidency indicates that another claim for over $2.7 billion remains separate.