Former Attorney-General of the Federation (AGF) and Minister of Justice, Abubakar Malami, has defended his role in the controversial $200 million settlement reached between the Federal Government and Sunrise Power over the long-running Mambilla Hydroelectric Power Project.
Malami said the settlement was negotiated in the interest of Nigeria and was intended to resolve a longstanding legal dispute that had become an obstacle to the development and financing of the major power project.
His comments came days after an International Chamber of Commerce (ICC) arbitration tribunal delivered a 616-page ruling in the dispute, finding that the 2020 settlement agreement and a subsequent addendum were products of corruption and therefore unenforceable.
The tribunal also rejected Sunrise Power’s claims against Nigeria and ordered the company and its promoter, Leno Adesanya, to reimburse Nigeria about $11.8 million in legal fees and arbitration costs.
Under the January 2020 agreement signed by Malami and then Minister of Power Saleh Mamman, Nigeria was to pay Sunrise $200 million to settle its claims arising from the Mambilla project.
A subsequent addendum divided the payment into two $100 million instalments and introduced an additional $200 million default provision, potentially increasing Nigeria’s exposure to $400 million, apart from interest.
The tribunal criticised Malami’s handling of the negotiations and concluded that he and Mr Adesanya had a common intention to secure a settlement favourable to Sunrise at Nigeria’s expense. It also said the settlement lacked the necessary presidential approval and could not bind the Federal Government.
Malami, however, rejected suggestions that he acted for personal financial benefit. Through his media aide, Mohammed Bello Doka, he argued that no evidence was presented showing that he received money or any other financial benefit from Sunrise or its promoter.
He also stressed that the arbitration was a commercial proceeding rather than a criminal trial, and said he would provide a more comprehensive response after reviewing the full tribunal award and the underlying records.
The Mambilla project, which has been under development for decades, has been at the centre of a series of contractual and legal disputes dating back to 2003.
