Nigeria finds itself once again entangled in a high-stakes international legal battle, this time at the International Chamber of Commerce (ICC) in Paris, France. The arbitration proceedings, initiated by Sunrise Power, center around a $2.3 billion claim against the Nigerian government for alleged breach of contract related to the long-abandoned Mambilla Power Project.
In an unprecedented turn of events, two former Nigerian Presidents—Olusegun Obasanjo and Muhammadu Buhari—were called to testify before the tribunal. Their testimonies mark a rare and perhaps humiliating moment in Nigeria’s history, as the country’s past leaders are being held accountable for decades of mismanagement surrounding the $6 billion Mambilla hydropower project in Taraba State.
How Nigeria Ended Up Here
The origins of this controversy trace back to Obasanjo’s presidency (1999-2007). With an ambitious goal of boosting Nigeria’s electricity generation to 10,000MW, his administration allocated $13-16 billion toward the power sector. Among the key projects was the 3,050MW Mambilla hydropower station, which was awarded under questionable circumstances.
- The contract was initially approved but later rescinded by Obasanjo, leading to confusion.
- Then Minister of State for Power, Dr. Olu Agunloye, allegedly proceeded with the contract despite unclear directives from the presidency.
- The Federal Government eventually halted the project, triggering legal action from Sunrise Power, which claimed its contractual rights had been violated.
The project remained stalled for decades, passing through the administrations of Umaru Yar’Adua, Goodluck Jonathan, and Buhari, with none resolving the contractual disputes. Finally, Buhari’s government formally canceled the deal, prompting Sunrise Power to sue Nigeria for $2.3 billion in damages.
The Arbitration in Paris
The ongoing arbitration in Paris could have severe financial consequences for Nigeria. If the tribunal rules against the country, Nigeria could face a $2.3 billion penalty, equivalent to ₦3.68 trillion. This would make it another case where Nigeria risks losing its global assets, much like the infamous P&ID scandal, which nearly cost the country $10 billion.
The tribunal proceedings have raised serious concerns about Nigeria’s governance and contract management. The fact that two former presidents had to testify underscores the depth of the administrative and legal failures that have plagued Nigeria’s energy sector for years.
What Happens Next?
- The arbitration tribunal will deliver its verdict in the coming months, deciding whether Nigeria will pay the $2.3 billion claim.
- If Nigeria loses, its foreign assets could be seized, including aircraft, bank accounts, and other properties.
- The case highlights deep-rooted corruption and bureaucratic failures, raising questions about leadership accountability in Nigeria.
For many Nigerians, this case is yet another example of how poor governance, lack of transparency, and disregard for due process have cost the nation billions. Even as Obasanjo and Buhari condemn corruption, their handling of this contract demonstrates the ultimate corruption of mismanagement—one that the Nigerian people may soon pay for.
