By Our Reporters
The International Chamber of Commerce (ICC) tribunal in Paris has found that former Attorney-General of the Federation Abubakar Malami struck a corrupt deal with Sunrise Power and Transmission Company Limited, even as it handed Nigeria a sweeping victory in the long-running arbitration over the Mambilla hydropower project.
The tribunal’s final award, issued on Thursday, dismissed Sunrise’s claims in their entirety and ordered the company and its promoter, Leno Adesanya, to reimburse Nigeria 75 percent of its legal costs, approximately $11.8 million.
The ruling also cleared the single biggest legal obstacle to the 3,050-megawatt Mambilla hydroelectric project in Taraba State, which has been stalled for decades .
But the tribunal’s findings against Malami, who served as Nigeria’s chief law officer under former President Muhammadu Buhari, are equally significant. The panel concluded that a corrupt arrangement between Malami and Adesanya tainted a 2020 settlement agreement that had potentially exposed Nigeria to $400 million in liability.
The dispute traces back to 2003, when Sunrise entered an agreement with Nigeria to build a 3,050MW hydropower plant in Mambilla on a build-operate-transfer basis, valued at $6 billion . The Federal Executive Council never authorised the contract, according to multiple presidential statements .
Sunrise commenced arbitration at the ICC on 10 October 2017, seeking $2.354 billion for alleged breach of contract . In 2020, the parties entered a settlement agreement under which Nigeria would pay $200 million. A subsequent addendum, dated 25 March 2020, introduced an additional $200 million financial-default sanction, doubling the potential liability to $400 million.
The tribunal found that the timing of the addendum, just nine weeks after the original agreement, raised serious concerns, particularly given testimony from Adesanya about an alleged bribe solicitation.
Adesanya told the tribunal that during a conversation with Malami and former Minister of Power Saleh Mamman, he heard them say Nigeria would not pay the $200 million at once, but would initially pay half and release the remaining amount after he had done “what is needed” .
The tribunal described Malami’s actions as “suspicious” and consistent with Adesanya’s testimony that the former attorney-general had solicited a bribe and demanded a portion of the settlement money.
The panel drew an adverse inference from the withholding of audio and video recordings Adesanya said he possessed, noting that the splitting of the settlement into two $100 million instalments corresponded precisely with his account of the alleged demand .
“Against this background, the Tribunal has no reason to doubt the veracity of Mr. Adesanya’s testimony to the effect that Attorney-General Malami solicited a bribe from Mr. Adesanya during the conversation he recorded,” the award stated .
The tribunal was unable to make a similar finding against Mamman, citing insufficient evidence about the former power minister’s precise role.
The tribunal found that Malami and Mamman signed both the January 2020 settlement agreement and the March 2020 addendum without first obtaining approval from Buhari or the Federal Executive Council . When Malami subsequently sought approval, Buhari declined.
In a handwritten note dated 20 April 2020, Buhari wrote that “FG hasn’t got USD 200m to pay (Sunrise)” . On 18 January 2021, the President’s Chief of Staff conveyed another handwritten rejection: “not approved” .
“The words ‘not approved’ leave no room for interpretation,” the tribunal said, describing Malami’s persistence in seeking approval despite Buhari’s repeated refusal as “remarkable” .
The tribunal also criticised the information Malami supplied to Buhari, finding that he “failed to provide President Buhari with the correct information” . It ultimately ruled that Malami and Mamman lacked both actual and apparent authority to bind Nigeria.
The tribunal examined extensive WhatsApp exchanges between Malami and Adesanya while Sunrise and Nigeria were opposing parties in ICC arbitrations. In one November 2021 message, Adesanya asked Malami to disengage Nigeria’s international lawyers and thanked him for his “recent efforts to see that we get paid.” Malami responded: “Thank you Mr Leno” .
The tribunal described the messages as “wholly inappropriate” and said Malami’s response to the expression of gratitude for helping Sunrise “get paid” was “disturbing” .
It also found that Adesanya supplied Malami with proposed letters to be issued in the name of the federal government, including one that purported to convey Buhari’s approval for immediate payment of $200 million to Sunrise — approval Buhari had never given .
The tribunal said the evidence presented “a disturbing picture” of two people who were supposed to represent opposing interests but instead coordinated closely. “In the context of that inappropriate relation, the gentlemen shared a high degree of trust and, it would appear, a lack of moral compass,” the tribunal said .
It added: “Not only did Attorney-General Malami act against the best interest of Nigeria, he was actively applying his efforts to the benefit of Sunrise so ‘that we get paid’”.
The tribunal dismissed Sunrise’s claim that Nigeria breached its contractual obligations under the settlement agreement and addendum . It rejected the company’s demand for $400 million — comprising the $200 million settlement sum and the $200 million default sum .
The panel ordered Sunrise and Adesanya to reimburse Nigeria 75 percent of its legal fees, assessed at $11,819,506.51. Of that, $2.5 million will be covered directly from funds held in escrow by the ICC, with the remaining $9,319,506.51 payable plus 10 percent annual interest . Arbitration costs of $1,656,500 were also split 75-25 in Nigeria’s favour .
The tribunal further ruled that Adesanya is personally bound by the arbitration agreement and that it has jurisdiction over Nigeria’s counterclaim against him and his firm .
President Bola Tinubu welcomed the ruling, saying it “affirms the Nigerian State’s determination not to succumb to predatory and exploitative claims by corrupt local and international entities and their enablers and funders” . He commended Attorney-General Lateef Fagbemi, the Federal Ministry of Justice, and the defence team led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP .
Tinubu also praised former Presidents Olusegun Obasanjo and the late Muhammadu Buhari, who testified in the case, as well as former Ministers Babatunde Fashola and Suleiman Adamu .
“Today’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydro power project for years,” Tinubu said .
Malami did not appear before the tribunal to give evidence. The tribunal noted that he acted against Nigeria’s interest and was “motivated by other incentive(s)”.
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