The dispute traces back to a 2003 agreement for Sunrise Power to develop the $6 billion Mambilla power project under a Build, Operate, and Transfer (BOT) arrangement.
Abuja, Nigeria – Former Nigerian Presidents Olusegun Obasanjo and Muhammadu Buhari have appeared before the International Chamber of Commerce (ICC) in Paris, France, to testify in the $2.3 billion arbitration case filed against Nigeria by Sunrise Power and Transmission Company Limited over an alleged breach of contract.
Sources confirmed their presence in Paris for the proceedings related to the 2003 Mambilla power project contract. Sunrise initiated arbitration in 2017, claiming $2.354 billion for the federal government’s failure to honor an agreement for the construction of the 3,050-megawatt Mambilla hydropower plant in Taraba State.
Presidency Denies Coercion
Amid speculation, presidential spokesman Bayo Onanuga denied allegations that prominent Nigerians were coerced into testifying. He stated that all involved in Nigeria’s defense were doing so willingly, citing patriotism and commitment to the country’s interests. He expressed President Tinubu’s gratitude for their efforts.
Obasanjo’s media aide, Kehinde Akinyemi, confirmed the former president’s presence in France but did not provide details of his involvement. Attempts to reach Buhari’s spokesperson, Garba Shehu, for confirmation were unsuccessful, though sources indicated that Buhari recently traveled abroad.
The Origin of the Case
The dispute traces back to a 2003 agreement for Sunrise Power to develop the $6 billion Mambilla power project under a Build, Operate, and Transfer (BOT) arrangement. In 2017, then-Minister of Power, Works, and Housing, Babatunde Fashola, dismissed Sunrise as a “middleman,” stating that the Buhari administration had contracted Sinohydro Corporation, a Chinese firm, to handle the project.
In 2020, the federal government reportedly agreed to an out-of-court settlement of $200 million with Sunrise. However, Sunrise later filed a $400 million compensation claim, alleging the government breached the settlement terms. According to Sunrise, the agreement required payment within 14 days of its execution on January 21, 2020, with penalties for default.
Obasanjo Challenges Contract Award
In a 2023 interview with TheCable, Obasanjo denied approving the 2003 contract, accusing his then-Minister of Power, Olu Agunloye, of exceeding his authority. Obasanjo stated that no minister could approve contracts exceeding ₦25 million without presidential consent, insisting he had rejected the proposal and directed Agunloye to abandon the plan.
“If I knew he issued such a letter to Sunrise, I would have sacked him as minister during my second term,” Obasanjo said.
Agunloye, however, maintained that the government was not obligated to pay Sunrise under the BOT arrangement, which required the project to be fully funded by the company, then reportedly worth less than $2,000.
EFCC Pursues Ex-Minister
In December 2023, the Economic and Financial Crimes Commission (EFCC) declared Agunloye wanted for alleged fraud related to the $6 billion contract. Following his surrender, Agunloye was arraigned in January 2024 and remanded in Kuje Prison pending the fulfillment of bail conditions.
Buhari Denies Authorizing 2020 Settlement
Former President Buhari distanced himself from the 2020 settlement agreement, stating in a letter to Attorney-General Lateef Fagbemi that he rejected the deal when it was presented for his approval.
“At no time did I specifically instruct my ministers to enter into or conclude any settlement agreement with Sunrise,” Buhari said. He added that he withheld approval because he saw no basis for Sunrise’s claims and expressed concern over Nigeria being targeted by “invisible contractors.”
The arbitration proceedings remain ongoing as Nigeria seeks to defend itself against the claims.
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