Nigeria has secured a major victory in its long-running legal dispute with Sunrise Power over the Mambilla Hydropower Project, with an arbitration tribunal of the International Chamber of Commerce (ICC) in Paris ruling in favour of the Federal Government on key claims brought by the company.
The ruling effectively rejects Sunrise Power’s claim for $2.35 billion in compensation over the disputed Mambilla Hydropower Project, which has been the subject of international arbitration for several years.
Sunrise had maintained that it was awarded a contract in 2003 to develop the Mambilla project on a build, operate and transfer basis and had sought compensation from Nigeria over what it described as a breach of its contractual obligations.
The company had also pursued claims connected to a subsequent settlement agreement, including a demand for $400 million, comprising a $200 million settlement sum and an additional $200 million default sum.
However, the three-member tribunal dismissed Sunrise’s claim that Nigeria had breached its obligations under the settlement agreement and its addendum.
The tribunal also rejected the company’s claim for payment of the $400 million settlement-related sum.
In another significant aspect of the decision, the tribunal determined that Leno Adesanya, the promoter of Sunrise Power, is bound by the arbitration agreement with Nigeria. It further ruled that it has jurisdiction over Nigeria’s counterclaim against Adesanya and his firm.
The dispute dates back to the alleged 2003 contract for the development of the Mambilla Hydropower Project in Taraba State. Sunrise subsequently commenced arbitration proceedings against Nigeria, seeking billions of dollars in compensation. Previous reports put the claim at about $2.35 billion.
The case has attracted significant attention, with former Presidents Olusegun Obasanjo and Muhammadu Buhari testifying before the ICC in January 2025. Both maintained that no valid contract had been awarded to Sunrise for the project.
Nigeria’s legal team in the proceedings was led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP.
The tribunal also ordered Sunrise and its promoter to reimburse Nigeria $11.8 million in legal costs, according to the details of the ruling.
The decision represents a major development in the long-running Mambilla dispute and removes the immediate exposure associated with Sunrise’s $2.35 billion compensation claim, although the broader history and other legal dimensions surrounding the Mambilla project remain significant.
The Mambilla project has faced contractual, financing and legal challenges for years. A separate 2025 legal review by White & Case described the Sunrise dispute as involving a $2.5 billion arbitration and noted that other proceedings had also arisen from the settlement discussions.
