…..They refuted allegations by Sunrise Power and its founder, Chief Leno Adesanya, who are demanding $2.3 billion in damages over an alleged contract breach by the Federal Government, according to The Nation.
Former Nigerian Presidents Olusegun Obasanjo and Muhammadu Buhari recently testified before the International Chamber of Commerce (ICC) Court of Arbitration in Paris, France, addressing a dispute involving the Federal Government and Sunrise Power and Transmission Company Limited. The central issue pertains to the alleged $6 billion Mambilla Power Project contract. Sunrise Power and its founder, Chief Leno Adesanya, are demanding $2.3 billion in compensation for an alleged breach of contract by the Nigerian government. However, both former presidents categorically denied the claims, stating that the Federal Government never awarded a valid contract to Sunrise Power.
The dispute traces back to a 2003 agreement purportedly signed by the then-Minister of Power, Dr. Olu Agunloye, just 24 hours after the Federal Executive Council (FEC), led by Obasanjo at the time, rejected the proposal. Obasanjo and Buhari argued that this agreement is invalid since it lacked FEC approval. Dr. Agunloye is currently under trial in Nigeria for alleged forgery, corruption, and disobedience in relation to the project. The Economic and Financial Crimes Commission (EFCC) accused him of awarding the contract without proper authorization, budgetary provision, or financial backing. Agunloye, however, claims that the government is unfairly scapegoating him to weaken Sunrise Power’s case.
Both Obasanjo and Buhari, supported by other high-ranking officials like Justice Minister Lateef Fagbemi, former Power Minister Babatunde Raji Fashola, and former Water Resources Minister Engr. Suleiman Adamu, testified that the contract in question lacked valid approval. According to sources present at the arbitration, the testimonies strongly favored Nigeria’s case, as the former presidents exposed what they described as fraudulent and deceitful claims by Sunrise Power. The two leaders emphasized their commitment to defending Nigeria’s interests and maintained that the contract’s supposed approval was baseless.
The arbitration proceedings revealed significant challenges for Sunrise Power. The company struggled to provide substantial evidence to support its claims. Key witnesses, including Dr. Agunloye and a third party from Senegal, failed to appear in court. Additionally, Sunrise Power’s reliance on a previous witness statement by former Attorney General Abubakar Malami backfired when Malami ultimately supported Buhari’s testimony. This development undermined Sunrise’s case, casting doubt on their claims of a valid agreement.
Obasanjo clarified his decision to testify in Paris, stating that it was a personal choice driven by his desire to counter what he called “atrocious” claims made by Agunloye about the project. He denied being influenced by President Bola Tinubu or any government official. The arbitration stems from a long-standing dispute over the Mambilla Power Project, initially valued at $6 billion and designed as a “build, operate, and transfer” venture to generate 3,050 megawatts of electricity. The disagreement has persisted since 2017, when Sunrise first initiated arbitration proceedings against Nigeria, seeking over $2.3 billion in damages.
Despite Sunrise’s claims, Nigeria presented a united front during the week-long hearing held from January 18 to 23, 2025. Observers noted that the government’s strong defense and the testimonies of prominent witnesses significantly bolstered its position. While the final ruling remains pending, initial indications suggest that Nigeria had a solid performance in defending itself against the allegations.
BY SAHARA REPORTERS