By DAYO ADESULU
Former Presidents Olusegun Obasanjo and Muhammadu Buhari are appearing before the International Chamber of Commerce (ICC) in Paris, France, concerning a $2.3 billion arbitration case filed against Nigeria by Sunrise Power and Transmission Company Limited. The case revolves around an alleged breach of contract related to the Mambilla Power Project, a 3,050 MW hydropower initiative in Taraba State.
Key Developments
- Arbitration Details:
- Sunrise Power initiated the arbitration in 2017, seeking $2.354 billion for a breach of a 2003 agreement to construct the Mambilla plant on a “build, operate, and transfer” basis.
- After negotiations, the federal government reportedly agreed to an out-of-court settlement of $200 million in 2020 but allegedly failed to honor the agreement. Sunrise later filed a $400 million compensation claim for breach of the settlement terms.
- Presidential Testimonies:
- A presidential spokesman, Bayo Onanuga, confirmed that eminent Nigerians, including the former presidents, are voluntarily testifying in defense of the country.
- Obasanjo’s media aide, Kehinde Akinyemi, confirmed that the former leader is in France but did not disclose specific details. Efforts to reach Buhari’s spokesperson, Garba Shehu, were unsuccessful.
- Background:
- The contract was reportedly awarded during Obasanjo’s administration in 2003. However, Obasanjo has denied approving the deal, asserting that his then-Minister of Power, Olu Agunloye, acted without authorization.
- Agunloye has maintained that the contract was structured under a build, operate, and transfer (BOT) agreement with no direct financial commitment from the government.
- In December 2023, the EFCC declared Agunloye wanted for alleged fraud tied to the Mambilla project, later arraigning him in court in January 2024.
Federal Government’s Stance
Former President Buhari has also denied authorizing the 2020 settlement agreement with Sunrise. In a letter to the Attorney-General of the Federation, Lateef Fagbemi, he stated:
“I refused to approve the settlement deal because I was convinced there was no basis for Sunrise’s claim.”
Buhari emphasized the need to resist “invisible contractors” who exploit Nigeria through inflated out-of-court settlements.
Implications for Nigeria
The arbitration underscores the ongoing challenges of contract governance and accountability in major infrastructure projects. The Mambilla Power Project, valued at $6 billion, remains crucial for Nigeria’s power sector and industrial development, but disputes like this risk further delays and financial losses.
