“Obasanjo and Buhari Defend Nigeria in High-Stakes $2.3 Billion Arbitration”
In an ongoing arbitration case at the International Chamber of Commerce (ICC) in Paris, former Nigerian Presidents Olusegun Obasanjo and Muhammadu Buhari have emerged as key defenders of Nigeria, presenting compelling arguments in the face of a $2.3 billion claim over the Mambilla Power Project.
Initiated in 2017 by Sunrise Power, a company led by Leno Adesanya, the arbitration centers around allegations of breach of contract by the Nigerian government. Sunrise Power is seeking $2.354 billion in damages, accusing the government of failing to honor a 2003 agreement for the Mambilla project, which was originally designed as a “build, operate, and transfer” project. The company claims that the government violated its contractual obligations.
The arbitration hearings kicked off on January 18, with Obasanjo taking the stand on January 22, followed by Buhari the next day. According to sources, both leaders impressed the tribunal with their candid and detailed recollections of the project’s history, as well as their insights into the government’s actions surrounding it.
Further support for Nigeria’s case came from former ministers Engr. Sulaiman Adamu (ex-Minister of Water Resources) and Babatunde Raji Fashola (ex-Minister of Power). Fashola, during his tenure, characterized Sunrise Power as merely a “middleman,” and highlighted how the Buhari administration worked with Sinohydro Corporation, a Chinese firm, as the primary contractor for the project.
In a major setback for Sunrise Power, the company’s key witnesses failed to appear. Among them was former Minister of Power, Olu Agunloye, who controversially awarded the Sunrise contract in 2003, a day after the Federal Executive Council (FEC) had rejected it. Agunloye’s absence, along with former Attorney-General of the Federation Michael Aondoakaa’s failure to adopt his statement, dealt a significant blow to Sunrise’s case.
Additionally, a key Senegalese witness critical to Sunrise’s argument also failed to testify. Meanwhile, Attorney General Abubakar Malami, a key figure under Buhari’s administration, stood in alignment with Buhari, rather than supporting Sunrise Power.
With the proceedings now moving into the expert testimony phase, written arguments are expected to follow. Once those are submitted, a date for a final decision will be set. Due to the confidential nature of arbitration proceedings, media coverage has been limited, keeping much of the discussion under wraps.
This arbitration stems from Nigeria’s decision to terminate Sunrise Power’s role in the Mambilla Power Project. In 2020, an out-of-court settlement reportedly awarded Sunrise $200 million, but the company later filed a $400 million claim, accusing the government of defaulting on the settlement terms. Sunrise also sought to be reinstated as a local partner for the updated $5.8 billion project—a demand that was excluded from later negotiations.
Efforts to contact Sunrise Power for comments have not yielded any response.
