Former presidents Olusegun Obasanjo and Muhammadu Buhari are appearing before the International Chamber of Commerce (ICC) in Paris, France, regarding a $2.3 billion arbitration case filed against Nigeria by Sunrise Power and Transmission Company.
The case involves allegations of contract breaches by the federal government over the 2003 Mambilla power project agreement.
Sources confirmed that both leaders are in Paris for the proceedings. However, Buhari’s spokesperson, Garba Shehu, could not be reached for comment, while Obasanjo’s media aide, Kehinde Akinyemi, confirmed the former president’s presence in France but said he was unaware of the purpose of his trip.
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The case’s origin
Sunrise initiated arbitration on October 10, 2017, seeking $2.354 billion for breach of a 2003 agreement to construct the 3,050-megawatt Mambilla power plant in Taraba State. This agreement was based on a build-operate-transfer model valued at $6 billion.
In 2020, following negotiations, the federal government and Sunrise reportedly reached a settlement of $200 million, which was to be paid within 14 days. However, Sunrise later filed a claim for $400 million, alleging non-payment. The company also sought reinstatement as the local partner for the $5.8 billion project, but this condition was later removed by the government, citing economic challenges during the COVID-19 pandemic.
Obasanjo’s perspective
Obasanjo, in a 2023 interview, denied approving the initial contract and criticized his former Minister of Power, Olu Agunloye, for allegedly awarding it without his consent. He stated, “No minister had the power to approve more than N25 million without express presidential consent. I never approved the $6 billion project.”
Obasanjo added that he would willingly testify if a commission of inquiry were set up, maintaining that all government records supported his stance.
EFCC’s involvement
In December 2023, the Economic and Financial Crimes Commission (EFCC) declared Agunloye wanted for fraud related to the Mambilla hydropower contract. He later surrendered and was arraigned in January 2024, pleading not guilty.
Buhari’s denial of settlement approval
Buhari, in a letter to the Attorney-General of the Federation, denied authorizing the 2020 settlement agreement. He clarified that while his ministers engaged Sunrise in discussions, he rejected the proposed settlement. Buhari expressed concerns about contractors exploiting Nigeria through out-of-court settlements, referencing the country’s earlier victory in the P&ID case.
