The Attorney-General of the Federation, Lateef Fagbemi, says Nigeria will not be a soft target for litigation and arbitration after an International Chamber of Commerce tribunal rejected Sunrise Power’s $400 million claim over the Mambilla Hydroelectric Power Project on September 17.
Fagbemi made the statement in Abuja while reacting to the ruling in the arbitration between Sunrise Power and Transmission Company Limited, Sunrise, its principal Leno Adesanya, and the Federal Government of Nigeria.
The arbitration concerned the 3,050-megawatt Mambilla Hydroelectric Power Project, one of Nigeria’s largest proposed infrastructure projects. Sunrise had sought $400 million, comprising a $200 million settlement sum and a $200 million default sum.
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The company also has a separate, pending arbitration claim exceeding $2.7 billion, according to Fagbemi.
The Attorney-General described the tribunal’s decision as a complete vindication of Nigeria’s position that Sunrise’s claim should be rejected.
Fagbemi said disputes surrounding the Mambilla Project had continued for more than two decades, beginning with an alleged Build-Operate-Transfer contract claim in 2003.
He said court proceedings followed in 2007, alongside subsequent arbitration proceedings involving Sunrise and the Federal Government.
According to Fagbemi, financing for the Mambilla Project from the China Export-Import Bank was expressly conditioned on resolving the disputes.
“As a result, the project has been unable to achieve financial close, depriving Nigeria and its people of the enormous economic benefits of 3,050 megawatts of clean, renewable hydroelectric power,” he said.
Fagbemi said the prolonged delay had affected potential power generation, industrial output and efforts to address energy poverty.
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The tribunal found that the settlement agreement and its addendum were not binding on Nigeria, Fagbemi said.
According to the Attorney-General, the former Nigerian ministers who signed the agreements lacked the authority to bind the Federal Government without presidential approval.
He also said the tribunal found that the settlement agreement resulted from corruption and violated Nigerian public policy, making it unenforceable.
Fagbemi said the tribunal found that Adesanya had engaged in a decades-long pattern of bribery and corruption involving senior Nigerian government officials connected to the Mambilla Project.
He said the tribunal also found that the alleged corrupt dealings extended to the settlement agreements forming the basis of the arbitration.
The tribunal further linked the alleged conduct to the origins of the Mambilla dispute, according to Fagbemi.
Fagbemi said Sunrise and Adesanya were ordered to bear 75 percent of Nigeria’s legal fees and expenses.
The costs also attract interest at 10 percent annually, compounded annually, he said.
“The tribunal expressed the hope that this would deter Mr Adesanya and his companies from bringing further frivolous legal proceedings against the Federal Republic of Nigeria,” Fagbemi said.
He said the ruling demonstrated Nigeria’s position that contractual claims against the government must comply with applicable law and public policy.
Fagbemi also acknowledged President Bola Ahmed Tinubu’s support for Nigeria’s defence in the arbitration.
He said the president had maintained that Nigeria should not accept contractual arrangements that were fraudulently contrived or claims arising from them.
“I also wish to express my immense appreciation to the president for ensuring the provision of necessary financial and logistical support for the effective defence of this matter,” Fagbemi said.
The Attorney-General said the Federal Ministry of Justice would continue to provide legal advice and representation for the Federal Government.
“We shall continue to provide sound legal advice and effective representation on behalf of the Federal Republic of Nigeria, ensuring that justice is served and the integrity of our nation upheld,” he said.
