Mambilla: Nigeria avoids $3.38bn liability after ICC arbitration victory — TSF
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Mambilla: Nigeria avoids $3.38bn liability after ICC arbitration victory — TSF
By Alabidun Shuaib AbdulRahman
The Tinubu Stakeholders Forum, TSF has described Nigeria’s victory in the International Chamber of Commerce arbitration over the Mambilla Hydropower Project as a major financial and economic relief for the country.
The forum said the ruling, which rejected claims brought against Nigeria by Sunrise Power, had potentially shielded the Federal Government from liabilities exceeding $3.38bn.
In a statement issued by its Chairman, Ahmad Sajoh, and Secretary, Danjuma Sada, on Tuesday, TSF said the tribunal rejected Sunrise Power’s $2.35bn claim arising from the long-running dispute over the Mambilla project.
It added that the tribunal also rejected a separate $400m claim linked to a proposed settlement.
According to the forum, the significance of the ruling extends beyond the legal dispute, particularly at a time when the Federal Government is addressing outstanding liabilities in the power sector.
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“For Nigeria’s economy, the decision represents the avoidance of a potentially substantial financial liability, the recovery of legal costs and, potentially, the removal of a long-standing legal obstacle to one of the country’s most ambitious power projects,” the statement said.
TSF said the Mambilla project had remained one of Nigeria’s major untapped infrastructure and energy opportunities, but its prolonged legal dispute had constituted an additional obstacle to its development.
The forum noted that the ruling came as the Federal Government was implementing a plan to settle N3.3tn in verified legacy obligations in the power sector.
It argued that the rejected Sunrise claim was larger than the reported N2.3tn legacy power-sector settlement programme.
“Eliminating this major liability prevents a massive financial drain, giving the government the necessary fiscal headroom to address inherited obligations and focus on sustainable power sector reforms,” TSF said.
The forum further said the successful completion of the Mambilla project could increase electricity supply and support manufacturing, mining, agriculture, technology and other productive sectors.
It also said the arbitration outcome could send a signal to foreign investors that Nigeria was prepared to defend its economic interests through established international dispute-resolution mechanisms.
TSF urged the Federal Government to use the arbitration outcome as an opportunity to accelerate the next phase of the Mambilla project while maintaining transparency, commercial discipline and strong contractual safeguards.
