Former Nigerian President Olusegun Obasanjo is expected to testify today at the International Chamber of Commerce (ICC) in Paris, France. The testimony is part of an ongoing $2.3 billion arbitration case filed against Nigeria by Sunrise Power Transmission Company Limited over an alleged breach of contract concerning the $6 billion Mambilla power project.
The case, which has drawn international attention, centers on a 2003 agreement for the construction of a 3,050-megawatt hydroelectric power plant in Mambilla, Taraba State. The agreement, based on a build-operate-transfer (BOT) model, has faced numerous controversies and legal challenges over the years.
On Tuesday, Leno Adesanya, Chairman and CEO of Sunrise Power, testified at the ICC regarding the claims his company filed in 2017. Sunrise accused the Nigerian government of breaching the original agreement, prompting them to seek a $2.354 billion settlement. A subsequent $400 million compensation claim was also filed after the government allegedly failed to honor a 2020 out-of-court settlement.
In a 2023 interview with TheCable, Obasanjo refuted allegations that his administration approved the contract with Sunrise. He questioned his then-Minister of Power, Olu Agunloye, on how such a significant deal could proceed without presidential approval.
“When I was president, no minister had the power to approve more than N25 million without express presidential consent. It was impossible for Agunloye to commit my government to a $6 billion project without my permission, and I did not give him any permission,” Obasanjo stated.
Reacting to Obasanjo’s comments, Agunloye argued that the BOT agreement did not require government funding. He claimed the project was to be financed entirely by Sunrise, a newly formed company with declared assets of less than $2,000 at the time.
The legal battle has seen various twists, with the Buhari administration describing Sunrise as a middleman and opting to engage Sinohydro Corporation Limited, a Chinese firm, to execute the project directly. Despite a 2020 settlement agreement, Sunrise claims the federal government defaulted on its terms, prompting further legal action.
