Nigeria wins arbitration as Sunrise’s $400 million hydropower claim dismissed

Nigeria has secured a victory in an international arbitration case, dismissing a $400 million claim by Sunrise Power and Transmission related to the Mambilla hydroelectric project, according to Attorney-General Lateef Fagbemi. The September 17 ruling eliminates a significant legal hurdle for the 3,050-megawatt hydropower project, which has been delayed for nearly two decades.

The International Chamber of Commerce tribunal found that the settlement agreements Sunrise relied on were not legally binding on Nigeria, as the officials who signed them lacked the authority to bind the government without presidential approval. Moreover, the tribunal deemed the agreements corrupt and contrary to Nigerian public policy, rendering them unenforceable.

Sunrise has been ordered to pay 75% of Nigeria's legal fees and expenses, with 10% interest compounded annually. The ruling may pave the way for renewed efforts to advance the project, whose financing from China's Export-Import Bank depended on resolving the dispute. Fagbemi also noted that Sunrise is pursuing a separate arbitration claim against Nigeria worth over $2.7 billion.