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#The Mambilla Power Project Arbitration: A Test of Nigeria’s Leadership and Future- By Amiida Fraser

“Mambilla Power Project: Nigeria Faces Arbitration Reckoning in France”

The four-year-old arbitration case (No. 26260/SPN/AB) at the International Court of Arbitration of the International Chamber of Commerce (ICC) in Paris, France, concerning Nigeria’s Mambilla Hydroelectric Power project, has reached its final stage. The dispute pits Sunrise Power and Transmission Company (Claimant/Counterclaim-Respondent) against the Federal Government of Nigeria (Respondent/Counterclaimant). Conceived 52 years ago, the project remains mired in delays, and Nigeria’s chances in the arbitration appear grim.

A History of Setbacks

The Mambilla project began in 1972 under General Yakubu Gowon but has suffered decades of stagnation. Renewed in 2000 by Sunrise Power, it gained traction with agreements between Nigeria and China in 2001. By 2003, Sunrise was awarded a Build, Operate, and Transfer (BOT) contract to construct the dam and generate 3,050 MW of electricity. However, political interference and shifting policies, particularly under President Olusegun Obasanjo, disrupted the project.

Subsequent administrations reinstated Sunrise’s contract only for President Muhammadu Buhari’s administration to re-award the project in 2017, leading to the current arbitration after failed settlement efforts.

The Arbitration Process

The ICC has processed extensive submissions, claims, counterclaims, and expert testimonies over 20 months. The hearing is set for late January 2025, with former Nigerian presidents, ministers, and experts testifying. Key witnesses, including former Attorney General Abubakar Malami and ex-Minister of Power Mamman Salleh, have declined to appear, leaving critical gaps in Nigeria’s defense.

Witnesses and Implications

Former President Buhari is expected to justify his administration’s actions, including ignoring prior agreements with Sunrise and re-awarding the project. Former President Obasanjo’s testimony may delve into controversial decisions during his tenure, including his replacement of BOT contracts with procurement models.

Sunrise’s witnesses include former Attorney General Michael Aondoakaa, who played a pivotal role in reinstating Sunrise’s contract in 2012. Other testimonies and cross-examinations are expected to expose deep-seated corruption and administrative failures that have plagued the project.

A Long Road Ahead

The ICC’s verdict, expected in early 2025, is unlikely to resolve the dispute. Both parties have signaled intentions to appeal, potentially delaying the project by another six years. This will exacerbate Nigeria’s electricity crisis, leaving 240 million citizens reliant on an unstable 4,000 MW grid.

Conclusion: A Test of Leadership

Over the last 25 years, successive Nigerian administrations have failed to deliver on the Mambilla project due to corruption, policy inconsistencies, and mismanagement. President Bola Ahmed Tinubu’s administration must urgently address these systemic issues to unlock Nigeria’s potential. Without reliable power infrastructure, hopes for industrial growth, technological advancement, and national stability will remain unfulfilled, perpetuating insecurity and economic stagnation.

Amiida Fraser
The National Patriots
Fraser Consulting
Headlinenews.news

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