AGF Fagbemi: Mambilla ICC Tribunal Confirms Nigeria Corruption

• Attorney-General Prince Lateef Fagbemi, SAN, stated that an International Chamber of Commerce (ICC) tribunal's final award vindicates Nigeria's position in the Mambilla power project dispute.
• The arbitration was brought against Nigeria by Sunrise Power and Transmission Company Limited.
• The AGF cited ICC tribunal findings to support Nigeria's claim that the Mambilla settlement was a product of corruption.
• According to the AGF, this corruption renders the settlement not binding on Nigeria.
• This development strengthens Nigeria's stance against corruption in international contracts and arbitration awards.

According to the Attorney-General, the findings of the International Chamber of Commerce arbitration tribunal support this critical contention.

Nigeria's Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, recently announced a significant development in the ongoing Mambilla power project dispute. In a public statement, the Attorney-General characterized the final award issued by an International Chamber of Commerce (ICC) tribunal as a "complete and resounding vindication" of Nigeria's long-held position regarding the contentious settlement. This outcome stems from an arbitration proceeding initiated against Nigeria by Sunrise Power and Transmission Company Limited.

The Attorney-General's remarks underscore a pivotal moment for Nigeria in its efforts to address perceived irregularities in major infrastructure contracts. The statement, delivered via a press release, highlighted the government's perspective that the tribunal's findings align with its assertion that the original Mambilla settlement was fundamentally flawed. This development is particularly noteworthy given the high stakes involved in the Mambilla power project, a critical national undertaking.

Central to Prince Lateef Fagbemi's declaration was the assertion that the Mambilla settlement in question was a direct "product of corruption." According to the Attorney-General, the findings of the International Chamber of Commerce arbitration tribunal support this critical contention. This interpretation of the tribunal's decision implies that the alleged corrupt origins of the settlement render it non-binding on Nigeria, thereby strengthening the nation's legal standing in the dispute.

The AGF's statement explicitly links the tribunal's findings to the government's argument that the arbitration award should not be enforceable against Nigeria due to the underlying corruption. This position, if fully upheld and acted upon, could set a significant precedent for how Nigeria approaches international contracts and disputes where allegations of corruption are present. The focus on the integrity of the initial agreement is a key element in the Nigeria Mambilla power project dispute.

This pronouncement by the Attorney-General carries substantial weight for future international contracts involving Nigerian entities, especially concerning the enforceability of agreements tainted by corruption. Lawyers advising clients on international contracts with Nigerian entities should note this precedent regarding the enforceability of agreements tainted by corruption, particularly in the context of ICC arbitration. The outcome strengthens Nigeria's position in challenging contracts based on corruption allegations, potentially deterring illicit practices in future dealings.

The AGF's interpretation of the ICC tribunal's findings suggests a robust stance by Nigeria against corruption in major projects. This could influence how foreign investors and companies approach agreements in Nigeria, emphasizing due diligence and transparency. The assertion that an arbitration award is not binding on Nigeria due to corruption, as cited from the ICC tribunal, marks a notable development in the landscape of international commercial arbitration involving African states.

Lawyers advising clients on international contracts with Nigerian entities should note this precedent regarding the enforceability of agreements tainted by corruption, particularly in the context of ICC arbitration. This outcome strengthens Nigeria's position in challenging contracts based on corruption allegations.

Source: Original reporting via TheNigeriaLawyer