Former President Muhammadu Buhari has returned to Nigeria after testifying before the International Chamber of Commerce (ICC) in Paris, France, concerning a $2.3 billion arbitration case filed by Sunrise Power over the Mambilla hydropower project.
Background
In 2003, Sunrise Power and Transmission Company Limited entered into an agreement with the Nigerian government to construct the 3,050-megawatt Mambilla hydropower plant in Taraba State on a build, operate, and transfer basis, valued at $6 billion. However, disputes arose over the project’s execution, leading Sunrise to initiate arbitration proceedings against Nigeria on October 10, 2017, alleging breach of contract and seeking $2.354 billion in damages.
Recent Developments
The arbitration hearings commenced recently in Paris, with both former Presidents Muhammadu Buhari and Olusegun Obasanjo providing testimonies. Buhari’s appearance aimed to defend Nigeria’s position against the claims made by Sunrise Power.
Reports indicate that Sunrise Power faced significant setbacks during the proceedings, as key witnesses failed to appear to adopt their statements, leading to their submissions being deemed abandoned. Notably, former Minister of Power Olu Agunloye, who awarded the initial contract to Sunrise in 2003, was listed as a witness but did not testify. Additionally, former Attorney-General Michael Aondoakaa appeared briefly in Paris but returned to Nigeria without testifying.
Statements from Former Presidents
In a 2023 interview, Obasanjo challenged Agunloye to explain the authority under which he awarded the contract to Sunrise, emphasizing that no minister had the power to approve such a significant project without presidential consent. Obasanjo stated, “I never approved it.”
Buhari, in a letter to the Attorney-General of the Federation, denied authorizing a 2020 settlement agreement with Sunrise Power, expressing his conviction that there was no basis for Sunrise’s claim. He emphasized his commitment to defending Nigeria from unwarranted financial claims.
Current Status
The arbitration proceedings are ongoing, with Nigeria actively defending its interests against the claims made by Sunrise Power. The outcome of this high-stakes arbitration remains pending, with significant implications for the country’s energy sector and financial standing.
Former President Buhari’s return underscores Nigeria’s dedication to addressing international legal challenges and upholding its contractual obligations while safeguarding national interests.
