Nigeria Wins $2.35bn Arbitration Case Against Sunrise Power

Nigeria has secured a major legal victory in its long-running dispute with Sunrise Power and Transmission Company over the Mambilla Hydropower Project, after an International Chamber of Commerce (ICC) tribunal in Paris dismissed the company’s $2.35 billion claim.

The final award was issued on Thursday, September 17, 2026, bringing a significant development to a dispute that has stretched back to a 2003 agreement concerning the proposed 3,050-megawatt Mambilla hydropower project in Taraba State.

According to reports on the ruling, the three-member tribunal rejected Sunrise Power’s claim that Nigeria had breached contractual obligations arising from a settlement agreement and an addendum connected to the Mambilla project.

The tribunal also dismissed a separate $400 million demand linked to the settlement, which comprised a $200 million payment and an additional $200 million default sum sought by Sunrise Power.

The tribunal further held that Leno Adesanya, the promoter of Sunrise Power, was bound by the arbitration agreement under the settlement arrangement and that it had jurisdiction over Nigeria’s counterclaim against him and his company.

The award also requires Sunrise Power and Adesanya to reimburse Nigeria for 75 per cent of the legal fees and expenses incurred during the arbitration.

The legal costs were put at about $11.82 million. Of that amount, $2.5 million is to be recovered from funds held in an escrow account with the ICC, while the remaining $9.32 million is payable by Sunrise Power and Adesanya, with interest accruing at 10 per cent annually until payment.

The arbitration costs were fixed at approximately $1.66 million, with Sunrise Power and Adesanya responsible for 75 per cent and Nigeria for the remaining 25 per cent.

The dispute dates back to 2003, when Sunrise Power was awarded a contract connected to the development of the Mambilla Hydropower Project in Taraba State.

The proposed facility was designed to generate 3,050 megawatts and was structured as a build-operate-transfer project, with reports putting its value at about $6 billion. Sunrise Power later argued that Nigeria breached its agreement by proceeding with an alternative arrangement involving Chinese partners.

Sunrise Power commenced arbitration proceedings before the ICC in October 2017, seeking approximately $2.354 billion in damages.

In January 2020, the Federal Government and Sunrise Power subsequently entered into a settlement agreement that reportedly provided for a $200 million payment to the company, alongside provisions relating to its participation in the Mambilla project. The arrangement was not implemented as planned, leading to further legal proceedings and the later $400 million claim.

The arbitration proceedings attracted testimony from former Nigerian leaders and officials. Former Presidents Olusegun Obasanjo and Muhammadu Buhari were among those who gave evidence during hearings in Paris in January 2025.

The latest ruling brings a major chapter in the arbitration dispute to a close, although the broader Mambilla project itself has remained stalled for years amid contractual, financing and approval controversies.