An International Chamber of Commerce tribunal in Paris has rejected a $400 million claim against the Federal Government of Nigeria over the long-delayed Mambilla Hydroelectric Power Project, finding that a settlement agreement underpinning the claim was tainted by corruption.
The tribunal also held that former Nigerian ministers who signed the settlement agreement and its addendum lacked the authority to legally bind the Federal Government without presidential approval.
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, disclosed this in a statement on Monday, describing the September 17, 2026, ruling as a decisive victory for Nigeria.
The arbitration was instituted by Sunrise Power and Transmission Company Limited and its principal, Leno Adesanya, over the 3,050-megawatt Mambilla Hydroelectric Power Project in Taraba State.
Sunrise had demanded $400 million from Nigeria, comprising a $200 million settlement sum and another $200 million described as a default sum, with interest at 10 per cent per annum compounded daily.
The company also has a separate, parallel arbitration in which it is seeking more than $2.7 billion from Nigeria.
According to Fagbemi, the ICC tribunal completely rejected Sunrise’s claim, ruling that the settlement agreement and subsequent addendum were not binding on the Federal Government.
The tribunal reportedly found that the former ministers who executed the agreements did not have the requisite authority to commit the Nigerian government without the approval of the President.
More significantly, the Attorney-General said the tribunal found that the settlement agreement was a product of corruption and violated Nigerian public policy, making it unenforceable.
Fagbemi said the tribunal found that Adesanya had engaged in what it described as a decades-long campaign of bribery and corruption involving payments to several senior Nigerian government officials connected with the Mambilla project.
The alleged corrupt dealings, according to the Attorney-General, extended to the settlement agreements that formed the basis of the $400 million arbitration.
The tribunal also reportedly found that a corrupt deal had been reached between Adesanya and former senior Nigerian officials who signed the agreements.
Fagbemi said the tribunal further linked Adesanya’s alleged conduct to the origins of the dispute, describing it as an established pattern of dealing with influential government officials through financial incentives.
As a result of the ruling, Sunrise and Adesanya were ordered to bear 75 per cent of Nigeria’s legal fees and expenses, with interest at 10 per cent per annum compounded annually, according to the Attorney-General.
The tribunal also reportedly expressed the hope that the order would deter Adesanya and his companies from pursuing what it described as further frivolous legal proceedings against Nigeria.
The dispute has lasted for more than two decades and has affected efforts to develop the Mambilla project, one of Nigeria’s largest proposed power infrastructure projects.
Fagbemi said the dispute began with Sunrise’s alleged Build-Operate-Transfer contract claim in 2003 and was followed by court proceedings and subsequent arbitration proceedings.
He said financing for the Mambilla project by the China Export-Import Bank was expressly conditioned on the resolution of the disputes. Consequently, the project has been unable to reach financial close, depriving Nigeria of the projected benefits of 3,050 megawatts of hydroelectric power, according to the minister.
The Attorney-General said the delay had also affected potential industrial output and efforts to address Nigeria’s electricity shortage.
Reacting to the ruling, Fagbemi said the award demonstrated that Nigeria would not accept what he described as predatory litigation and arbitration based on questionable contractual arrangements.
He credited President Bola Tinubu with maintaining that Nigeria should not be bound by allegedly fraudulent contractual agreements or claims arising from them.
Fagbemi also said the President had provided the financial and logistical support required for Nigeria’s defence of the arbitration.
He pledged that the Federal Ministry of Justice would continue to defend the country’s legal interests and provide legal representation to the Federal Government.
