KEY POINTS
• President Bola Tinubu praised the EFCC after an arbitration tribunal ruled in Nigeria’s favour over the Mambilla power project dispute.
• Sunrise Power had sought $680 million in damages, while a separate claim seeks more than $2.7 billion in compensation and interest.
• The EFCC said its investigation into the original contract award was pivotal to the government’s defence.
MAIN STORY
President Bola Tinubu has commended the Economic and Financial Crimes Commission for its investigation into the Mambilla power project contract following an arbitration ruling in favour of Nigeria.
EFCC spokesperson Dele Oyewale said in a statement issued in Abuja on Friday that the investigation played a key role in the Federal Government’s defence against claims arising from the contract awarded to Sunrise Power and Transmission Company Limited.
According to Oyewale, the International Arbitration Tribunal under the International Criminal Court in Paris rejected a $680 million damages claim brought by Sunrise Power.
The company is also seeking more than $2.7 billion in compensation and interest in a separate arbitration connected to disputes over the 3,960 megawatt Mambilla Hydroelectric Power Project in Taraba.
Oyewale said Tinubu commended individuals who participated in defending Nigeria’s interests, including former President Olusegun Obasanjo, who testified in the proceedings, and the late former President Muhammadu Buhari, who also testified before his death.
The president also acknowledged the contributions of former ministers Babatunde Fashola and Suleiman Adamu, as well as expert witnesses involved in the case.
Tinubu specifically praised the EFCC for investigating what the commission described as a fraudulent contract award.
He said Nigeria remained willing to work with genuine investors and would continue to meet its legal obligations to credible partners, while defending the country against claims he considered opportunistic.
Oyewale said Tinubu viewed the ruling as removing a major legal obstacle that had affected the Mambilla project for years.
The dispute dates to May 22, 2003, when former Power Minister Olu Agunloye awarded a 3,050 megawatt hydroelectric project to Sunrise Power on a Build, Operate and Transfer basis.
The EFCC said its investigation found that the contract had not received approval from the Federal Executive Council, which was chaired by Obasanjo at the time.
The commission also alleged that the circumstances surrounding the award involved favouritism, citing a longstanding relationship between Agunloye and Sunrise Power owner Leno Adesanya.
According to the EFCC, Sunrise Power transferred N3.6 million to Agunloye’s Guaranty Trust Bank account in August 2019.
The alleged irregularities subsequently led to the revocation of the contract under Buhari’s administration.
Agunloye is currently facing a seven count charge relating to alleged fraudulent contract award and corruption. He was arraigned on Jan. 10, 2024, before Justice Jude Onwuegbuzie of the FCT High Court in Apo.
THE ISSUES
- The arbitration ruling concerns claims arising from a long running dispute over the Mambilla power project and could affect the legal and financial exposure associated with the abandoned contract.
- The EFCC’s investigation formed part of Nigeria’s defence in the arbitration, with the commission maintaining that the original contract award did not receive the required Federal Executive Council approval.
- The dispute extends beyond the $680 million claim rejected by the tribunal, as Sunrise Power has another arbitration claim seeking more than $2.7 billion in compensation and interest.
- The criminal proceedings against Agunloye remain separate from the arbitration dispute. The former minister is facing charges over the alleged contract award and corruption.
WHAT’S BEING SAID
“The tribunal rejected 680 million dollars damages demanded by Sunrise Power as settlement.” – Dele Oyewale, EFCC spokesperson
“The president vowed to defend all opportunistic claims instituted against the nation’s commonwealth.” – Dele Oyewale, EFCC spokesperson
“He said the ruling cleared the biggest legal hurdle paralysing Mambilla project for years.” – Dele Oyewale, EFCC spokesperson
WHAT’S NEXT
The separate arbitration claim by Sunrise Power, involving more than $2.7 billion in compensation and interest, remains part of the wider dispute. The criminal case against Agunloye over the contract award is also ongoing.
BOTTOM LINE
The latest arbitration ruling is a significant development in the long running Mambilla power project dispute, with the EFCC saying its investigation helped Nigeria defend the claim. A separate compensation claim and the criminal proceedings against Agunloye remain unresolved.
