Eighty-nine civil society organisations in Nigeria have known as on the federal authorities to publish its assessment of the nation’s investment treaties, warning that worldwide arbitration mechanisms might expose public funds to expensive claims and prohibit the federal government’s skill to implement environmental and local weather rules.
The teams, together with Amnesty International Nigeria, BudgIT, ActionSupport Nigeria, Health of Mother Earth Foundation, Policy Alert and Yiaga Africa, additionally demanded a assessment of Nigeria’s reliance on the investor-state dispute settlement (ISDS) system, which permits overseas buyers to problem sure authorities measures earlier than worldwide arbitration tribunals.
In a press release issued on 17 October to mark the Global Days of Action to End ISDS, the CSOs known as on the federal authorities and the National Assembly to make sure that investment agreements don’t erode environmental safety, public well being, fiscal stability and communities’ entry to justice.
They additionally known as for improved transparency in investment agreements and related dispute-settlement provisions, in addition to safeguards to make sure that new offshore petroleum investments don’t unnecessarily prohibit Nigeria’s regulatory powers.
The assertion comes as Nigeria pursues main offshore oil tasks and seeks to entice investment in transition minerals, together with lithium, regardless of rising strain for stronger environmental accountability and local weather motion.
Investment disputes, public funds
The CSOs warned that ISDS provisions might price Nigeria substantial compensation claims when overseas buyers take into account authorities insurance policies inconsistent with protections below relevant investment treaties.
They mentioned the monetary penalties may very well be large for a rustic with restricted fiscal house and in depth environmental liabilities, significantly in oil-producing communities.
“Public resources spent defending claims or paying awards are resources unavailable for healthcare, education, climate adaptation, clean energy and environmental restoration,” they mentioned.
They defined that the prospect of costly arbitration might additionally discourage governments from introducing or strengthening rules within the public curiosity, a phenomenon generally described as regulatory chill.
The CSOs burdened that overseas buyers have been entitled to honest remedy and due course of however shouldn’t get pleasure from distinctive rights that undermine democratic choices, environmental accountability or entry to justice for affected communities.
Nigeria’s report of arbitration disputes
The assertion cited three publicly documented investor-state arbitration instances involving Nigeria’s petroleum sector.
Shell Nigeria Ultra Deep Limited initiated proceedings in opposition to Nigeria on the International Centre for Settlement of Investment Disputes (ICSID) in 2007. The case was discontinued in 2011.
Shell Petroleum N.V. and Shell Petroleum Development Company of Nigeria Limited initiated one other ICSID case in 2021 below the Nigeria-Netherlands bilateral investment treaty. That case was discontinued in October 2022.
In June 2023, Korea National Oil Corporation and its Nigerian subsidiaries initiated one other case below the Nigeria-Korea bilateral investment treaty. The case remained pending within the newest data cited by the organisations in 2026.
The CSOs famous that the three instances had not confirmed Nigeria’s legal responsibility within the data they reviewed, however argued that they present the authorized and financial publicity related to defending investment disputes.
They additionally raised issues concerning the implications of investment protections for Nigeria’s deliberate offshore petroleum developments, together with Bonga North and Bonga South West/Aparo.
They known as on the federal government to make sure that petroleum agreements, production-sharing preparations and financial incentives protect its skill to strengthen environmental, local weather, public well being and financial rules.
Lithium dispute raises recent issues
The CSOs additionally cited the Jupiter Lithium dispute in Kaduna, registered at ICSID in June 2026 below the Nigeria-United Kingdom bilateral investment treaty.
The case, which remained pending, issues a lithium mining mission and reveals the potential implications of investment protections for Nigeria’s rising transition-minerals sector.
The CSOs mentioned the nation should make sure that investment preparations assist accountable mining, environmental safeguards and home financial advantages quite than reproduce the environmental and social issues related to oil extraction.
Demand publication of treaty assessment
A central demand of the CSOs is the instant publication of the report of a nine-member committee inaugurated by the Attorney-General of the Federation on 8 November 2024 to assessment Nigeria’s bilateral investment treaties and the Nigerian Investment Promotion Commission Act.
The committee was mandated to study how investment promotion may very well be balanced with nationwide pursuits, environmental safety and sustainable growth.
The CSOs mentioned the committee’s findings and proposals had not been made public and demanded their release with out additional delay.
If the assessment stays incomplete, they known as on the federal government to disclose its standing and announce a agency completion date.
They additionally known as for open consultations involving the National Assembly, civil society organisations, host communities, labour teams and impartial consultants.
They additional urged the federal authorities to take lawful steps in the direction of terminating or changing investment agreements that expose professional public-interest regulation to authorized and monetary risks, whereas supporting worldwide efforts to transfer past the ISDS system.
They mentioned Nigeria wants investment that helps growth with out compromising democratic accountability, environmental safety or the rights of its residents.
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