Nigeria No Longer Soft Target for Predatory Arbitration, Fagbemi Warns

Nigeria's Attorney General and Minister of Justice, Prince Lateef Fagbemi, has cautioned that the country will no longer be an easy target for predatory litigation and arbitration. This warning comes in response to a recent ruling by an international tribunal in Paris, France, which ruled in favor of Nigeria in a $400 million arbitration case.

Fagbemi highlighted the history of Sunrise Power and Transmission Company Limited's (Sunrise) continuous litigation and arbitration against Nigeria over the Mambilla Project, beginning in 2003. The project, which would provide 3,050 megawatts of clean, renewable hydroelectric power, has been delayed due to these disputes, causing significant economic losses to Nigeria and its people.

The tribunal rejected Sunrise's entire claim, stating that the Settlement Agreement and Addendum were not binding on Nigeria as the former ministers who signed them lacked the authority to commit and bind the Federal Government of Nigeria without presidential approval. Moreover, the tribunal found the Settlement Agreement to be a product of corruption and a violation of Nigerian public policy, making it unenforceable.

Fagbemi emphasized that Nigeria will not tolerate fraudulent contractual agreements and any adverse claims arising from them, acknowledging President Bola Tinubu's leadership in maintaining this stance. The AGF also reiterated its commitment to upholding the rule of law and defending Nigeria's legal interests.

Former Attorney General Abubakar Malami, however, disputed allegations of corruption, clarifying that the proceedings were commercial arbitration between parties and not a criminal prosecution. He urged caution when considering the complete evidentiary and documentary record of the case.