Former Nigerian Presidents Olusegun Obasanjo and Muhammadu Buhari have mounted a robust defense for Nigeria at the International Chamber of Commerce (ICC) in Paris, France. The case involves a $2.3 billion arbitration claim brought against the federal government by Sunrise Power over alleged breaches of contract related to the Mambilla Power Project.
Sunrise Power, a firm promoted by Leno Adesanya, initiated the arbitration proceedings on October 10, 2017, accusing the Nigerian government of violating a 2003 agreement for the project, which was originally planned as a “build, operate, and transfer” scheme. The company is seeking $2.354 billion in damages.
However, Sunrise Power’s case suffered a significant setback during the ongoing hearings, as its key witnesses failed to appear to testify. Among them was Olu Agunloye, the Minister of Power who controversially awarded the Sunrise contract in 2003, just a day after the Federal Executive Council (FEC) rejected it. He was listed as a witness but did not appear. Similarly, a former Attorney-General of the Federation, Michael Aondoakaa, briefly appeared in Paris but returned to Nigeria without testifying, while a third key witness, a Senegalese national, also failed to attend.
Notably, the Minister of Justice and Attorney General under Buhari’s administration, Abubakar Malami, was not fielded as a witness despite Sunrise’s reliance on his testimony. Instead, Malami supported his former boss, Buhari.
Obasanjo testified on Wednesday, January 22, followed by Buhari on Thursday, January 23. Their forthright and unequivocal testimonies were met with approval from the international legal team representing Nigeria. Sources revealed that both former presidents demonstrated exceptional composure and clarity in defending the country’s position.
The arbitration hearings began on January 18, with factual witnesses presenting from January 20 to January 23. Moving forward, the sessions will focus on expert opinions. Following the submission of written arguments, the tribunal will schedule a date for their adoption and later set a timeline for delivering its decision. Confidentiality rules limit detailed media reporting of arbitration proceedings.
The Mambilla Power Project has been mired in controversy for years. In 2017, the then-Minister of Power, Works, and Housing, Babatunde Fashola, described Sunrise Power as a “middleman” and clarified that the Buhari administration had engaged Sinohydro Corporation Limited, a Chinese firm, as the project’s Engineering, Procurement, and Construction (EPC) contractor.
While an out-of-court settlement of $200 million was reportedly reached in 2020, Sunrise Power filed a new claim for $400 million at the ICC, alleging that the federal government defaulted on the settlement terms. The company also demanded reinstatement as the local partner for the revised $5.8 billion Mambilla Project, claiming its removal from the negotiations was unjustified.
Leadership Weekend contacted Sunrise Power for comments but received no response at the time of filing this report. Despite Sunrise Power’s claims, Nigeria’s defense has been bolstered by the testimonies of Obasanjo and Buhari, as well as former ministers Engr Sulaiman Adamu and Babatunde Fashola. Observers believe the proceedings in Paris have strengthened Nigeria’s case before the tribunal.
