By Favour Chioma
The Tinubu Stakeholders Forum (TSF) has described Nigeria’s victory in the International Chamber of Commerce (ICC) arbitration over the Mambilla Hydroelectric Power Project as a significant development for the country’s finances, power sector and wider economic prospects.
An ICC tribunal in Paris recently rejected claims brought by Sunrise Power and Transmission Company Limited against Nigeria over the long-running Mambilla project dispute.
The tribunal dismissed Sunrise Power’s $2.35 billion claim and also rejected a separate demand for $400 million linked to a 2020 settlement agreement and its addendum. Reports putting the related claims together have valued Nigeria’s potential exposure at about $3.38 billion.
The tribunal also ordered Sunrise Power and its promoter, Leno Adesanya, to reimburse 75 per cent of Nigeria’s legal fees and expenses incurred during the arbitration. The amount was put at approximately $11.82 million.
Reacting to the development in a statement signed by its Chairman, Ahmad Sajoh, and Secretary, Danjuma Sada, TSF said the significance of the ruling goes beyond the immediate arbitration proceedings.
The forum argued that the decision reduces a major potential financial liability for Nigeria while removing a long-running legal issue surrounding one of the country’s largest proposed hydropower projects.
“For Nigeria’s economy, the decision represents the avoidance of a potentially substantial financial liability, the recovery of legal costs and, potentially, the removal of a long-standing legal obstacle to one of the country’s most ambitious power projects,” the statement said.
TSF described the Mambilla project as one of Nigeria’s major untapped infrastructure and energy opportunities, noting that its prolonged legal dispute had contributed to uncertainty around the project.
The forum said resolving the arbitration comes at an important period for Nigeria’s electricity sector, particularly as the Federal Government works to address longstanding financial obligations within the power industry.
TSF also linked the arbitration outcome to the government’s reported plan to settle about N3.3 trillion in verified legacy power-sector obligations.
The organisation argued that avoiding a multibillion-dollar liability could provide additional fiscal space for the government to address existing obligations and pursue reforms in the electricity sector.
The forum further said that successful development of the Mambilla project could have wider economic implications if it eventually adds substantial generation capacity to Nigeria’s power system.
According to TSF, increased electricity supply could support sectors such as manufacturing, mining, agriculture and technology while creating opportunities for businesses, employment and investment.
The organisation also said the arbitration outcome could send a signal to international investors that Nigeria is prepared to defend its interests through established international dispute-resolution mechanisms while respecting contractual and legal processes.
However, the arbitration victory does not by itself provide financing or a construction timeline for the Mambilla project. The next phase will depend on decisions concerning funding, project structure, contractors and implementation.
TSF therefore urged the Federal Government to build on the legal outcome by accelerating the next phase of work on the Mambilla project.
It called for transparency, commercial discipline and strong contractual safeguards as the government considers the way forward for the long-delayed hydropower project.
The Mambilla project, located in Taraba State, has been the subject of a long-running dispute dating back to an earlier agreement concerning the development of a major hydropower facility. Sunrise commenced arbitration proceedings against Nigeria in 2017, while a separate dispute later arose from a 2020 settlement agreement.
