The Federal Government has secured a major victory in the legal battle surrounding the Mambilla Hydroelectric Power Project after an International Chamber of Commerce (ICC) arbitration tribunal in Paris ruled in Nigeria’s favour.
The tribunal rejected the claims brought before it by Sunrise Power and Transmission Company Limited (Sunrise) against the Federal Republic of Nigeria.
The case involved a $680 million settlement claim and interest relating to another arbitration in which Sunrise is seeking more than $2.7 billion in compensation and interest over disputes connected with the development of the 3,960-megawatt Mambilla Hydroelectric Power Project in Taraba State.
President Bola Tinubu, in a statement reacting to the award afer the court ruling on Thursday, described the decision as a significant victory for Nigeria and said it had cleared the “single biggest legal hurdle” that had stalled the Mambilla project for years.
He commended Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, and officials of the Federal Ministry of Justice for their efforts in defending the country.
Tinubu also praised Nigeria’s defence team, led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP, for their role in the arbitration.
The President acknowledged the contributions of former President Olusegun Obasanjo and the late President Muhammadu Buhari, who testified in the case, as well as former Ministers Babatunde Fashola, and Suleiman Adamu, and other witnesses and experts.
According to Tinubu, the dispute dated back to a 2003 contract for the construction of a 3,050-megawatt hydroelectric plant in Taraba State under a build-operate-transfer model.
He said the Federal Executive Council had never authorised the contract.
The President also commended the National Security Adviser for his support and the Economic and Financial Crimes Commission for its investigation into the matter.
Tinubu said the government remained committed to partnering with genuine investors and honouring its legal obligations, while promising to strongly defend the country’s interests against what he described as opportunistic claims against Nigeria’s commonwealth.
The Mambilla Hydroelectric Power Project, planned for Taraba State, has been the subject of prolonged legal and contractual disputes, which have affected progress on the massive power project.
The ICC award now provides a major development in the dispute, with the Federal Government saying the decision removes a significant legal obstacle to the project.
Tinubu said the government would continue to protect Nigeria’s interests while pursuing investments and projects capable of strengthening the country’s power infrastructure.