In a dramatic turn of events, former Nigerian Presidents Muhammadu Buhari and Olusegun Obasanjo are poised to testify in the ongoing $2.3 billion arbitration proceedings involving the federal government and Sunrise Power, set to take place on Monday at the International Chamber of Commerce (ICC) in Paris, France. The dispute stems from Sunrise Power’s claims of a breach of contract related to the ambitious Mambilla Hydropower project.
The arbitration, which has captured international attention, revolves around a 2003 agreement between the Nigerian government and Sunrise Power to build the Mambilla power plant, a multi-billion-dollar energy project aimed at addressing Nigeria’s power deficit. However, years of delays, changes in government policies, and accusations of corruption have led to a legal battle over the project’s cancellation and unresolved financial commitments.
While social media claims erroneously suggested that Buhari had already testified, TheCable can confirm that the arbitration hearings will officially begin this Monday. Buhari’s testimony will be pivotal, especially as the federal government faces accusations of backing out of a previously agreed settlement with Sunrise Power in 2020. According to a source within the presidency, Buhari will explain why he refused to authorize a $200 million settlement with Sunrise, citing a lack of merit to the company’s claims.
“I did not give permission for any settlement with Sunrise Power,” Buhari wrote to Nigeria’s Attorney-General in January 2024, “and I will provide all necessary clarifications during the proceedings.” This firm stance could play a key role in shaping the outcome of the ongoing arbitration.
Obasanjo, who served as president during the original deal, is also scheduled to testify. His involvement in the project has been a source of contention, as he has publicly challenged the legitimacy of the contract. Speaking to TheCable in 2023, Obasanjo denied approving the deal, stating that his former Minister of Power, Olu Agunloye, acted without his consent. “If a commission of inquiry is set up, I am ready to testify,” Obasanjo declared. “I never approved the project, and I would have fired Agunloye if I had known about it.”
The Nigerian government’s defense hinges on the claim that the Mambilla contract was improperly awarded, and the responsibility for its failure lies with the actions of individuals who did not have presidential approval. However, Agunloye has vehemently denied Obasanjo’s allegations, maintaining that the contract was legitimate and followed due process. The former minister is currently under investigation by the Economic and Financial Crimes Commission (EFCC) for alleged corruption related to the contract.
In an unexpected twist, Michael Aondoakaa, the former Nigerian Attorney-General, who had initially filed a witness statement in support of Sunrise Power, has withdrawn his support. Aondoakaa, who was slated to testify on behalf of the company, abruptly left Paris, citing personal reasons. While rumors circulated that he had been summoned back to Nigeria by President Bola Tinubu, this has been denied by the presidency.
“The reports claiming that President Tinubu forced anyone to testify or refrain from testifying are entirely false,” a statement from Tinubu’s office clarified. “The individuals involved in Nigeria’s defense are acting out of patriotism, not under any form of coercion.”
Aondoakaa’s withdrawal is significant, as his testimony had been seen as a crucial part of Sunrise Power’s case. The company had hoped to use Aondoakaa’s statement to bolster its allegations of witness intimidation by the Nigerian government. His sudden departure has raised suspicions among some observers that his decision may be part of a wider strategy by Sunrise to claim that external pressures have undermined the integrity of the arbitration process.
As the proceedings continue, the spotlight also falls on the controversy surrounding a leaked article by a certain “Dr. Anthony Ibrahim,” purportedly from the Truth and Justice Group based in London. The article, which circulated widely on social media, painted a bleak picture of Nigeria’s chances in the arbitration, suggesting that the country would lose the case. However, TheCable’s investigation revealed that “Dr. Anthony Ibrahim” and the “Truth and Justice Group” could not be traced through any reliable online sources, leading many to question the authenticity of the article.
The Mambilla Hydropower project, which was initially valued at $6 billion, has become a symbol of Nigeria’s struggle to harness its energy potential. When Sunrise Power filed for arbitration in 2017, it demanded a $2.354 billion award for breach of contract. Later, in 2020, the company sought an additional $400 million after a proposed settlement was not honored by the Nigerian government.
As the drama unfolds in Paris, the outcome of this arbitration could have significant implications for Nigeria’s international reputation and its ability to attract foreign investment. The country’s defense in the case is being led by some of its most influential figures, including Buhari and Obasanjo, but it remains to be seen whether their testimonies will be enough to overturn Sunrise Power’s claims.
The arbitration is not just about money; it is also a battle for credibility. With Nigeria facing accusations of reneging on agreements, the government must carefully navigate this high-stakes legal battle, balancing the defense of its actions with the need to restore trust in its commitment to major infrastructure projects.