Nigeria Prevails in $2.35 Billion ICC Arbitration with Sunrise Power over Mambilla Project
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TL;DR
- ICC tribunal dismisses $2.35bn claim by Sunrise Power against Nigeria.
- The dispute concerns the 2003 Mambilla hydropower project agreement.
- Settlement attempts failed before this arbitration award.
- Current and former top Nigerian officials testified during the proceedings.
Overview
On September 17, 2026, it was reported that the International Chamber of Commerce (ICC) in Paris issued an arbitration award in favor of Nigeria regarding the dispute with Sunrise Power.
The dispute centered on the 2003 contract for the 3,050MW Mambilla hydropower plant in Taraba State, under which Sunrise Power sought $2.35 billion in damages.
This ICC arbitration outcome ends a protracted process that involved previous settlement attempts and contributions from several former Nigerian officials as witnesses.
What Happened
The ICC arbitration tribunal in Paris ruled in favor of Nigeria in a dispute involving the Mambilla hydropower project, rejecting Sunrise Power's claim for approximately $2.35 billion in damages.
The disagreement stems from a 2003 build-operate-transfer agreement with Sunrise Power for the Mambilla project in Taraba State, which has long been described as one of Nigeria's biggest planned power projects.
Sunrise Power initiated arbitration at the ICC in October 2017, arguing that Nigeria breached the development agreement and seeking damages.
There were previous attempts to settle, including a 2020 arrangement for a $200 million payment to Sunrise Power, but this settlement led to further disputes when payment was not made.
Context
The Mambilla hydropower project was intended to significantly boost Nigeria's energy generation, with a planned capacity of 3,050MW, making it one of Africa's largest power ventures.
The underlying dispute and arbitration drew significant national attention, with contributions from key former officials and multiple attempts at negotiated settlement.
Why It Matters
- This ICC award relieves Nigeria of a $2.35 billion financial exposure in connection with the Mambilla project dispute.
- The decision could affect the progress and future contracting for the Mambilla hydropower project, a key infrastructure plan.
- The award also serves as a reference point for government exposure in international commercial arbitration involving state projects.