Former Nigerian President Olusegun Obasanjo is set to testify today before the International Chamber of Commerce (ICC) in Paris, France, regarding a $2.3 billion arbitration case brought against Nigeria by Sunrise Power.Â
The company claims the Nigerian government breached a contract related to the Mambilla hydropower project.
On Tuesday, Leno Adesanya, the Chairman and CEO of Sunrise Power, testified before the ICC regarding the arbitration proceedings, which stem from a 2003 agreement to construct a 3,050-megawatt plant in Mambilla, Taraba State.
In an earlier interview with TheCable, Obasanjo questioned his former Minister of Power, Olu Agunloye, over awarding the contract to Sunrise Power.
He denied approving the $6 billion project, stating that no minister had the authority to approve any expenditure above ₦25 million without his consent.
“When I was president, Agunloye could not have committed my government to such a project without my permission, and I did not give any,” Obasanjo said.
He added that he had directed Agunloye to drop the proposal during a federal executive council meeting in May 2003.
In response, Agunloye denied any wrongdoing. He explained that the agreement was structured as a build-operate-transfer (BOT) arrangement to be fully funded by Sunrise Power, a newly formed company with assets reportedly valued at less than $2,000 at the time.
Sunrise Power initiated arbitration proceedings in 2017, seeking $2.354 billion in damages for breach of contract.
In 2020, the company and the Nigerian government reportedly reached an out-of-court settlement for $200 million.
However, Sunrise later filed a new $400 million claim, alleging the government failed to honor the settlement agreement.
The ongoing legal dispute has drawn significant attention, with Sunrise accusing the government of not meeting the terms of the revised agreement, which initially included restoring Sunrise as a local partner for the $5.8 billion Mambilla project.
The federal government, however, requested a review of the settlement, citing economic challenges caused by the COVID-19 pandemic.
The arbitration case continues to unfold as both sides present their testimonies and arguments before the ICC.
