Former President Olusegun Obasanjo is scheduled to appear today before the International Chamber of Commerce (ICC) in Paris, France, as Nigeria grapples with a $2.3 billion arbitration case filed by Sunrise Power and Transmission Company. The case revolves around allegations of a breach of contract tied to the $6 billion Mambilla Power Project.
The long-standing dispute centers on a 2003 agreement in which Sunrise Power claims to have secured rights to develop the 3,050-megawatt plant in Taraba State under a “build, operate, and transfer” (BOT) arrangement. However, successive administrations have questioned the legitimacy of the agreement.
Obasanjo, who led Nigeria at the time, has distanced himself from the contract, asserting that his administration never approved the deal. Speaking in 2023, he emphasized that no minister had the authority to commit the government to such a massive project without his explicit approval. He accused his then-Minister of Power, Olu Agunloye, of unilaterally issuing a letter of intent to Sunrise, a decision he claims he would have reversed had he been aware.
Sunrise, represented by legal heavyweight Femi Falana, maintains that the government violated the terms of the contract, leading to financial damages. Despite attempts to resolve the dispute, including a proposed $200 million settlement in 2020, negotiations collapsed, with Sunrise filing a revised $400 million compensation claim last year.
The Buhari administration had sought to bypass Sunrise by engaging Sinohydro Corporation, a Chinese firm, for the Engineering, Procurement, and Construction (EPC) phase of the project. This move further deepened the rift, with Sunrise alleging it was sidelined from its role as a local partner.
Observers see Obasanjo’s testimony as critical to unraveling the origins of the contract and clarifying Nigeria’s defense. The outcome could have far-reaching implications, not only for the Mambilla Power Project, touted as a game-changer for Nigeria’s energy landscape, but also for the country’s financial liabilities on the global stage.
With billions at stake, today’s hearing is expected to bring new revelations to a saga that has spanned decades and multiple administrations.