By John Azu
The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, has warned that Nigeria will not become a soft target for predatory litigation and arbitration, following the country’s victory in the long-running dispute over the Mambilla Power Project.
On September 17, Nigeria prevailed against Sunrise Power and Transmission Company Limited at the International Chamber of Commerce (ICC) in Paris in an arbitration brought by the company, which sought about $400 million, including a $200 million “default sum” with interest at 10 per cent per annum, compounded daily.
Sunrise had also sought $2.7 billion in a separate arbitration.
In a statement on Tuesday, Fagbemi said the final award, which rejected Sunrise’s claims in their entirety, represented a “complete and resounding vindication” of Nigeria’s position.
According to him, the tribunal found that the Settlement Agreement and its Addendum were not binding on Nigeria because the former ministers who signed the documents lacked the requisite authority to commit and bind the Federal Government without presidential approval.
Fagbemi said the tribunal also found that the Settlement Agreement was a product of corruption and violated Nigerian public policy, making it unenforceable.
The AGF expressed regret that financing for the Mambilla Project by the China Export-Import Bank, which was expressly conditioned on the resolution of the disputes, had stalled because of the numerous litigations involving the firm led by Leno Adesanya.
He said the delay had denied Nigerians the potential economic benefits of the 3,050-megawatt clean hydroelectric power project.
Fagbemi added that the cost of the delay, measured in lost power generation, reduced industrial output and continued energy poverty, was difficult to quantify.
“The tribunal found that Mr Adesanya had engaged in a decades-long campaign of bribery and corruption, often involving very large payments to several senior Nigerian government officials connected to the Mambilla Project,” he said.
He said the tribunal also found that the alleged corrupt scheme extended to the Settlement Agreements, adding that it specifically determined that a corrupt deal had been reached between Adesanya and former senior Nigerian officials who signed the agreement that formed the basis of the arbitration against Nigeria.
According to Fagbemi, the tribunal further found that Adesanya’s alleged pattern of corrupt dealings dated back to the origins of the Mambilla dispute and described it as an established modus operandi involving engagement with influential Nigerian government officials through financial incentives.
“Consequently, Sunrise and Mr Adesanya were ordered to bear the overwhelming majority of costs — 75 per cent of Nigeria’s legal fees and expenses, plus interest at 10 per cent per annum compounded annually,” he said.
Fagbemi added that the tribunal expressed the hope that the cost order would deter Adesanya and his companies from pursuing what it described as further frivolous legal proceedings against the Federal Republic of Nigeria.