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

Nigeria has secured a victory in an international arbitration case, dismissing a $400 million claim by Sunrise Power and Transmission against the Mambilla hydroelectric project. Attorney-General Lateef Fagbemi announced the ruling on Tuesday, stating that it removes a significant legal hurdle for the 3,050-megawatt hydropower project, which has faced nearly two decades of delays.

The International Chamber of Commerce tribunal ruled that settlement agreements Sunrise relied on were invalid, as the officials who signed them lacked the authority to bind the government without presidential approval. The tribunal also found the agreements to be corrupt and against Nigerian public policy, rendering them unenforceable.

Sunrise has been ordered to pay 75% of Nigeria's legal fees and expenses, with an additional 10% interest compounded annually. The outcome could pave the way for renewed efforts to advance the project, whose Chinese financing was contingent on settling the dispute. Sunrise has yet to comment on the ruling, but has filed a separate arbitration claim against Nigeria for over $2.7 billion.