By DAYO ADESULU
Former Nigerian Presidents Olusegun Obasanjo and Muhammadu Buhari are currently testifying before the International Chamber of Commerce (ICC) in Paris, France. The arbitration proceedings were initiated by Sunrise Power Transmission Company Limited, which is seeking $2.3 billion in damages for an alleged breach of contract by the Nigerian government.
Case Background
The dispute originates from a 2003 agreement under which Sunrise was contracted to execute the Mambilla Power Project—a 3,050 MW hydropower initiative in Taraba State. The project was designed to operate on a build, operate, and transfer (BOT) model, valued at $6 billion.
- In 2017, Sunrise initiated arbitration proceedings at the ICC, citing a breach of contract.
- The company had also reached a purported settlement of $200 million in 2020, which the government allegedly failed to honor.
- The settlement agreement required the government to pay within 14 days, failing which Sunrise filed a $400 million compensation claim at the ICC.
Testimonies and Statements
President Olusegun Obasanjo
In earlier interviews, Obasanjo denied authorizing the original contract with Sunrise. He claimed that his former Minister of Power, Olu Agunloye, acted independently without presidential approval.
“No minister under my administration had the authority to approve contracts exceeding ₦25 million without express presidential consent,” Obasanjo reiterated.
Obasanjo emphasized that records clearly demonstrate his opposition to the agreement during his tenure.
President Muhammadu Buhari
Buhari also denied approving the 2020 settlement agreement proposed by Sunrise. He clarified in a written statement to the Attorney-General of the Federation, Lateef Fagbemi, that while discussions occurred among ministers, he rejected the settlement deal when it was presented for his approval.
“I was convinced there was no basis for Sunrise’s claims,” Buhari stated.
Legal and Financial Implications
Sunrise’s Claims
Sunrise’s legal representative, Femi Falana, has argued that the federal government failed to honor its obligations under the BOT agreement. The company asserts it was sidelined in favor of direct contracting with Sinohydro Corporation Limited, a Chinese firm.
Government Position
The federal government contends that the agreement with Sunrise was improperly awarded, citing financial irregularities and lack of capacity by the company, which allegedly had declared assets of less than $2,000 at the time of its registration.
Ongoing Investigations
In December 2023, the Economic and Financial Crimes Commission (EFCC) declared former Minister of Power Olu Agunloye wanted for alleged fraud related to the Mambilla Power Project. Agunloye has denied the allegations and is currently facing charges in Nigerian courts.
National Response
Presidential spokesman Bayo Onanuga dismissed claims that eminent Nigerians, including Obasanjo and Buhari, were coerced into testifying. He affirmed that their participation stems from patriotism and a shared goal of protecting Nigeria’s interests.
“President Tinubu and the entire country are grateful to them for their willingness to defend Nigeria,” Onanuga stated.
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