Musings on the legal framework for resolution of foreign investment disputes in Nigeria

• Jurisdiction: South Africa
• Published date: 01 April 2021
• Author: Ajudua, P.P.A.
• Date: 01 April 2021
• DOI: https://doi.org/10.47348/JCCL/V6/i2a10
• Pages: 251-259

https://doi.org/10.47348/JCCL/V6/i2a10

251

MUSINGS ON THE LEGAL

FRAMEWORK FOR RESOLUTION OF

FOREIGN INVESTMENT DISPUTES IN

NIGERIA

PRINCESS PAT ADA AJUDUA

Legislator, Delta State House of Assembly, Asaba, Nigeria

I OVERVIEW

Resolution of dispute arising from foreign investments in Nigeria is

achieved through non-judicial and judicial mechanisms, otherwise

known as arbitration and litigation in courts. Foreign investors

are expected to seek redress using one of the aforementioned

mechanisms. Although the principles of public international law

seem to be in contention with the business interests of an investor

and the host country, there has been a rapid growth and development

in investment arbitration as a trade dispute resolution mechanism

in the past years, and the courts in Nigeria, through her decisions,

have made pronouncements regarding the disputes from foreign

investments. Consequent to this, it has become critically important

for investors, solicitors, professional service providers and trainers, to

understand the intricate legal elements involved in the resolution of

disputes involving foreign investment. This study examines the legal

framework for resolution of foreign investment disputes in Nigeria.

Concepts such as nationalisation and expropriation of foreign

investments, stability clauses and foreign investment disputes,

renegotiating and the stability of contractual agreement as well as

legal infrastructure were discussed and fully analysed.

II INTRODUCTION

Succeeding governments in Nigeria now realise that a way of lifting

the country out of the economic doldrums is through foreign direct

investment (FDI). (This is viewed when considering the three tiers

of government in Nigeria: the Federal, State and Local Governments

in relation to foreign indebtedness). The government believes

that FDI would create employment and have a positive impact

on economic growth and development. (C Jenkins & L Thomas,

‘Foreign Direct Investment in Southern Africa: Determinants,

Characteristics and Implications for Economic Growth and Poverty

(2020) 6(2) JCCL&P 251

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