The International Chamber of Commerce (ICC) Tribunal has found that former Attorney-General of the Federation and Minister of Justice, Abubakar Malami, engaged in a corrupt arrangement with Leno Adesanya, promoter of Sunrise Power and Transmission Company Limited, over the controversial Mambilla Hydroelectric Power Project.
The tribunal also found that Malami repeatedly attempted to persuade former President Muhammadu Buhari to approve settlement agreements involving Sunrise, despite Buhari’s refusal to endorse them.
The findings were contained in the tribunal’s final award issued on Thursday in an arbitration case brought by Sunrise against the Federal Republic of Nigeria.
Sunrise had sought hundreds of millions of dollars from Nigeria over disputes connected to the 3,960-megawatt Mambilla Power Project in Taraba State, which dates back to 2003.
The tribunal rejected Sunrise’s claims and ordered the company and its promoter to refund Nigeria’s legal costs of $11.8 million.
Alleged deal between Malami and Adesanya
The tribunal examined testimony from Adesanya, who alleged that Malami solicited a bribe during negotiations after a $200 million settlement agreement had already been signed.
The agreement, dated January 2, 2020, provided for Nigeria to pay Sunrise $200 million. However, an addendum signed on March 25, 2020, introduced another $200 million as a default payment, potentially increasing Nigeria’s liability to $400 million.
According to the tribunal, the timing of the addendum raised concerns, particularly because of evidence presented by Adesanya regarding an alleged demand involving Malami and former Minister of Power, Saleh Mamman.
Adesanya testified that during a meeting with Malami and Mamman, he was told that Nigeria would initially pay only half of the $200 million settlement, with the balance to be released after he had done “what is needed.”
He also claimed to have audio and video recordings relating to the alleged solicitation.
The tribunal said such recordings could have been important evidence in determining whether part of the settlement money was expected to be paid to government officials. However, the recordings were not presented to the tribunal by Sunrise or Adesanya.
After considering the evidence, the tribunal concluded that a corrupt arrangement existed between Malami and Adesanya and that the settlement agreements were tainted by corruption.
Buhari rejected settlement
The tribunal also found that Malami failed on several occasions to secure Buhari’s approval for the settlement arrangements.
In a handwritten note dated April 20, 2020, Buhari reportedly withheld his approval, stating that the Federal Government did not have $200 million to pay Sunrise.
The tribunal further found that Malami did not provide Buhari with accurate information about the matter, despite the former president repeatedly rejecting the proposed settlement.
On January 18, 2021, Buhari’s Chief of Staff wrote to Malami regarding the matter, with the former president reportedly writing “not approved” on the document.
Despite Buhari’s position, the tribunal said Malami continued to push for the settlement in favour of Sunrise.
It also found evidence of repeated communication and coordination between Malami and Adesanya, including direct WhatsApp exchanges, despite their purportedly opposing positions in the dispute.
The tribunal said the evidence was sufficient to establish that a corrupt deal had been reached between the two men.
It stated that Malami’s failure to appear before the tribunal to testify was also significant, adding that his conduct was against Nigeria’s interests and appeared to have been “motivated by other incentive(s).”
Settlement agreements declared unenforceable
The tribunal had earlier determined that the 2020 Settlement Agreement and subsequent Addendum were not binding on Nigeria because they lacked the required presidential approval.
It further held that the agreements were unenforceable because they were products of corruption and contrary to Nigerian public policy.
Consequently, the tribunal rejected Sunrise’s claim that Nigeria had breached its obligations under the agreements.
It also dismissed the company’s demand for $400 million, comprising the original $200 million settlement and the additional $200 million default sum, as well as its claim for interest.
The ruling effectively prevents Sunrise from enforcing the disputed $400 million settlement against Nigeria.
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