Former Nigerian Presidents Olusegun Obasanjo and Muhammadu Buhari have defended the Federal Government in a $2.3 billion arbitration case over the Mambilla Power Project.
The case, filed by Sunrise Power and its founder, Leno Adesanya, alleges a breach of contract by the government regarding the $6 billion project in Taraba State.
At the International Chamber of Commerce Court of Arbitration in Paris, the ex-presidents refuted Sunrise’s claims, arguing that no valid contract was awarded to the company. They stated that the purported 2003 agreement, signed by former Minister of Power Dr. Olu Agunloye, was invalid as it was issued 24 hours after the Federal Executive Council (FEC) rejected the contract. Agunloye, currently on trial in Nigeria, faces charges of forgery, corruption, and disobedience of a presidential order.
The Economic and Financial Crimes Commission (EFCC) alleges that Agunloye improperly awarded the contract for the 3,960MW Mambilla Hydroelectric Power Station to Sunrise Power without budgetary approval or funding. Agunloye denies the allegations, accusing the government of scapegoating him and distorting facts to undermine Sunrise’s claims in arbitration.
Testimonies by Obasanjo and Buhari were supported by former Justice Ministers Lateef Fagbemi and Abubakar Malami, as well as former Ministers Babatunde Fashola (Power) and Sulaiman Adamu (Water Resources). The government’s legal team argued that Sunrise’s claims are based on fraudulent documents and lack valid evidence.
Obasanjo emphasized that no contract was awarded to Sunrise during his tenure, stating that Agunloye acted without authority. He described Sunrise’s claims as an attempt to extort Nigeria. Buhari echoed these sentiments, asserting that the government’s actions were in the national interest.
The arbitration hearing, held from January 18 to 23, exposed weaknesses in Sunrise’s case. The company failed to present key witnesses, and its reliance on previous statements from Malami, who ultimately supported the government’s position, weakened its arguments.
The Mambilla Power Project dispute has spanned multiple administrations, with Sunrise alleging that successive governments failed to honor settlement agreements. In 2017, the Buhari administration awarded the project to another company, prompting Sunrise to revive its arbitration claims.
The case has drawn significant attention, as it highlights allegations of corruption and mismanagement surrounding one of Nigeria’s largest infrastructure projects. While the arbitration panel is yet to deliver its judgment, the government has expressed confidence in its defense, citing the compelling testimonies of its witnesses.
