Former Nigerian Presidents Olusegun Obasanjo and Muhammadu Buhari have traveled to Paris to testify in an ongoing $2.3 billion arbitration case at the International Chamber of Commerce (ICC). The case involves a dispute between Nigeria and Sunrise Power and Transmission Company Limited over an alleged breach of contract related to the Mambilla hydropower project.
The arbitration stems from a 2003 agreement to build the 3,050-megawatt power plant in Taraba State under a “build, operate, and transfer” model valued at $6 billion. Sunrise Power claims the Nigerian government failed to honor its contractual obligations, leading the company to seek compensation. In 2017, the company initiated legal proceedings at the ICC, demanding $2.354 billion in damages.
Presidential spokesman Bayo Onanuga recently addressed rumors surrounding the case. He dismissed claims that prominent Nigerians were coerced into participating in the arbitration, stating, “All the eminent Nigerians involved in Nigeria’s defense are doing so willingly and out of sheer patriotism and conviction. President Tinubu and the entire country are grateful to them.”
Obasanjo’s media aide confirmed that the former president is in France, but details about his involvement remain undisclosed. Obasanjo previously stated he is prepared to testify regarding the matter. “If a commission of inquiry is set up today to investigate the matter, I am ready to testify,” he told TheCable in 2023.
The roots of the dispute trace back to allegations that Sunrise Power’s contract was improperly awarded in 2003 under Obasanjo’s administration.
Obasanjo has denied approving the agreement, stating that no minister under his government had the authority to commit to a $6 billion project without his explicit consent.
“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.
“If a commission of inquiry is set up today to investigate the matter, I am ready to testify. I do not even need to testify because all the records are there. I never approved it.
“When he presented his memo to the federal executive council (on May 21, 2003), I was surprised because he had previously discussed it with me and I had told him to jettison the idea, that I had other ideas on how the power sector would be restructured and funded.
“I told him as much at the council meeting and directed him to step down the memo. I find it surprising that Agunloye is now claiming he acted on behalf of Nigeria. If I knew he issued such a letter to Sunrise, I would have sacked him as minister during my second term. He would not have spent a day longer in office”, the former president said.
In a separate development, Buhari denied authorizing a 2020 settlement agreement between Nigeria and Sunrise. He claimed he had rejected the proposal presented by his ministers, asserting there was no basis for the company’s claims.
He stated: “While I understood that my ministers of justice, power and water resources were approached by Sunrise and were engaging with various stakeholders that were involved in the project to resolve the issues blocking the project’s implementation, at no time did I specifically instruct them to enter into and conclude any settlement agreement with Sunrise Power and Transmission Company Limited.
“Indeed, when the proposed settlement agreement and addendum were presented to me for my consideration and approval on 20th April, 2020, I refused to approve the settlement deal because I was convinced that there was no basis for Sunrise’s claim.
“I hope the above clarifications will assist you in your defence of our country from these ‘invisible contractors who all too often quietly take Nigeria for many millions in out-of-court settlements’, as I stated in my recent statement regarding Nigeria’s victory in the P&ID saga”, the former president said.
Sunrise Power initially sought a $200 million out-of-court settlement, but the deal collapsed, prompting the company to file a new $400 million claim in 2020, including penalties. The company alleges that the government failed to honor its payment obligations within the agreed 14-day window.
The controversy has raised questions about the project’s oversight and governance. Former Minister of Power, Works, and Housing, Babatunde Fashola, described Sunrise as a “middleman” and emphasized the Buhari administration’s preference for direct engagement with Sinohydro Corporation, the Chinese contractor handling the project.
Adding to the legal drama, the Economic and Financial Crimes Commission (EFCC) declared former Power Minister Olu Agunloye wanted in December 2023 over allegations of fraud linked to the contract. Agunloye has denied wrongdoing, arguing that Sunrise was responsible for funding the project.
