Business
Tinubu reacts as Nigeria wins arbitration against Sunrise Power
On Thursday, an International Arbitration Tribunal under the auspices of the International Chamber of Commerce (ICC) in Paris issued an award in favour of Nigeria, rejecting the claims in the arbitration instituted by Sunrise Power and Transmission Company Ltd (Sunrise).
The company had made a claim against the Federal Republic of Nigeria, demanding $680 million as a settlement sum and interest in respect of another arbitration in which it is claiming over $2.7 billion in compensation and interest.
The claim relates to disputes associated with the development of the 3,960 MW Mambila Hydroelectric Power Project in Taraba State.
The tribunal, in its verdict on Thursday, directed Sunrise and its promoter to refund Nigeria’s legal fees of $11.8 million.
It also rejected Sunrise’s claim for an order that Nigeria should pay the company $400 million in satisfaction of the settlement sum of $200 million and the default sum of $200 million.
The tribunal insisted that Leno Adesanya, the promoter of Sunrise, is bound by the arbitration agreement with Nigeria pursuant to the settlement agreement, adding that the tribunal has jurisdiction over Nigeria’s counterclaim against him and his firm.
Tinubu speaks
In his reaction Thursday evening, President Bola Tinubu said the latest decision 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.
“On behalf of the Government and People of the Federal Republic of Nigeria, I strongly commend the tremendous efforts of the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi and the entire team at the Federal Ministry of Justice for their efforts in this matter,” the president said in a statement signed by presidential spokesperson, Bayo Onanuga.
“I also commend the FRN defence team, led by Ms Elizabeth Oger-Gross and Mr Tolu Obamuroh, both of Paul Hastings LLP, for their professional and excellent defence of the country.
“I commend the patriotism and support of former President Olusegun Obasanjo, GCFR, and late President Muhammadu Buhari, GCFR, who testified in the case, which dated back to an illegal 2003 contract to build a 3,050-megawatt hydroelectric plant in Taraba State under a build-operate-transfer model. The Federal Executive Council never authorised the contract.”
READ ALSO: Shettima clarifies remarks on northern governors’ support for President Tinubu in 2023
Mr Tinubu also thanked the other witnesses in the case, including former Ministers Babatunde Raji Fashola, SAN, and Suleiman Adamu, as well as the experts, for their active participation in defending Nigeria’s interests in the arbitration.
“I commend the National Security Adviser for his support and the Economic and Financial Crimes Commission for its investigation into the case.
“I want to assure you that while our country remains committed to partnering with genuine investors and honouring its legal obligations, it will continue to defend all opportunistic claims instituted against our commonwealth strongly,” he said.
Thursday’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydro power project for years, the statement said.
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The Federal Government has begun processes to clear the backlog of Export Expansion Grant (EEG) payments and reform the scheme for sustainability.
The Minister of Industry, Trade and Investment, Jumoke Oduwole, said this at a stakeholders engagement on the EEG scheme in Abuja on Thursday.
Mrs Oduwole said the scheme had faced difficulties, with payments outstanding since 2020, leaving the current administration with significant payment backlogs.
She said the backlog required validation and verification of claims submitted by exporters, involving several government agencies.
According to her, the Federal Ministry of Finance, Central Bank of Nigeria (CBN) and other relevant agencies are involved in the process.
The minister said the Federal Ministry of Industry, Trade and Investment anchored the EEG as an export promotion tool under the Nigerian Export Promotion Council (NEPC).
She said the government was pursuing two pathways: clearing outstanding payments and restructuring the scheme to make it sustainable.
The minister said the reforms aligned with President Bola Tinubu’s Renewed Hope Agenda and the goal of building a one trillion dollar economy.
She said the agenda prioritised economic diversification and non-oil exports as part of efforts to strengthen Nigeria’s productive capacity.
Mrs Oduwole said Nigerian non-oil exporters had recorded growth in both volume and value over the past two years.
She said the government would continue to incentivise exporters sustainably because the sector could create jobs and expand the global market for Nigerian products.
The minister said the government had also been working to improve market access through trade agreements, including the African Continental Free Trade Area (AfCFTA).
She said payments already approved in May 2023 would be transmitted to the 10th National Assembly for consideration and approval.
Mrs Oduwole explained that the National Assembly would carry out its duties legislative before the Federal Government could issue the necessary instruments for payment.
READ ALSO: CBN, trade ministry speak on AfCFTA trade reforms at Citibank forum
“President Tinubu has also approved earmarking 40 per cent of the NEST Fund toward a trade facilitation fund.
“The independently managed fund will provide a sustainable pathway for settling EEG obligations and supporting trade facilitation.
“Once the National Assembly approves the payments, government can issue promissory notes through the Debt Management Office to clear the backlog.
“The government will thereafter establish a reformed framework for export expansion incentives,” she said.
According to Mrs Oduwole, the current EEG structure is unsustainable because it is too expensive and has no closing date.
She said the reformed scheme would discourage the export of raw materials and place greater emphasis on value-added and finished products.
The minister said the scheme would also support emerging businesses and target sectors requiring assistance to improve their export competitiveness.
Mrs Oduwole said the government had engaged stakeholders, including the NEPC and the Manufacturers Association of Nigeria Export Group, to develop a sustainable way forward for the scheme.
(NAN)
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