Eighty-nine civil society organisations in Nigeria have referred to as on the federal authorities to publish its evaluate of the nation’s investment treaties, warning that worldwide arbitration mechanisms might expose public funds to expensive claims and limit the federal government’s capacity to implement environmental and local weather laws.
The teams, together with Amnesty International Nigeria, BudgIT, ActionAssist Nigeria, Health of Mother Earth Foundation, Policy Alert and Yiaga Africa, additionally demanded a evaluate of Nigeria’s reliance on the investor-state dispute settlement (ISDS) system, which permits international buyers to problem sure authorities measures earlier than worldwide arbitration tribunals.
In an announcement issued on 17 October to mark the Global Days of Action to End ISDS, the CSOs referred to as on the federal authorities and the National Assembly to be sure that investment agreements don’t erode environmental safety, public well being, fiscal stability and communities’ entry to justice.
They additionally referred to as for improved transparency in investment agreements and related dispute-settlement provisions, in addition to safeguards to be sure that new offshore petroleum investments don’t unnecessarily limit Nigeria’s regulatory powers.
The assertion comes as Nigeria pursues main offshore oil initiatives and seeks to entice investment in transition minerals, together with lithium, regardless of rising stress for stronger environmental accountability and local weather motion.
Investment disputes, public funds(*89*)
The CSOs warned that ISDS provisions might price Nigeria substantial compensation claims when international buyers contemplate authorities insurance policies inconsistent with protections underneath relevant investment treaties.
They stated the monetary penalties might be big for a rustic with restricted fiscal house and intensive environmental liabilities, notably 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 stated.
They defined that the prospect of costly arbitration might additionally discourage governments from introducing or strengthening laws within the public curiosity, a phenomenon generally described as regulatory chill.
The CSOs harassed that international buyers had been entitled to honest therapy and due course of however mustn’t get pleasure from distinctive rights that undermine democratic choices, environmental accountability or entry to justice for affected communities.
Nigeria’s file of arbitration disputes(*89*)
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 underneath 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 underneath the Nigeria-Korea bilateral investment treaty. The case remained pending within the newest information cited by the organisations in 2026.
The CSOs famous that the three instances had not confirmed Nigeria’s legal responsibility within the information they reviewed, however argued that they present the authorized and financial publicity related to defending investment disputes.
They additionally raised considerations in regards to the implications of investment protections for Nigeria’s deliberate offshore petroleum developments, together with Bonga North and Bonga South West/Aparo.
They referred to as on the federal government to be sure that petroleum agreements, production-sharing preparations and financial incentives protect its capacity to strengthen environmental, local weather, public well being and financial laws.
Lithium dispute raises recent considerations(*89*)
The CSOs additionally cited the Jupiter Lithium dispute in Kaduna, registered at ICSID in June 2026 underneath the Nigeria-United Kingdom bilateral investment treaty.
The case, which remained pending, considerations a lithium mining undertaking and reveals the potential implications of investment protections for Nigeria’s rising transition-minerals sector.
The CSOs stated the nation should be sure that investment preparations assist accountable mining, environmental safeguards and home financial advantages moderately than reproduce the environmental and social issues related to oil extraction.
Demand publication of treaty evaluate(*89*)
A central demand of the CSOs is the speedy publication of the report of a nine-member committee inaugurated by the Attorney-General of the Federation on 8 November 2024 to evaluate Nigeria’s bilateral investment treaties and the Nigerian Investment Promotion Commission Act.
The committee was mandated to look at how investment promotion might be balanced with nationwide pursuits, environmental safety and sustainable growth.
The CSOs stated the committee’s findings and suggestions had not been made public and demanded their release with out additional delay.
If the evaluate stays incomplete, they referred to as on the federal government to disclose its standing and announce a agency completion date.
They additionally referred to as for open consultations involving the National Assembly, civil society organisations, host communities, labour teams and unbiased consultants.
They additional urged the federal authorities to take lawful steps in the direction of terminating or changing investment agreements that expose respectable public-interest regulation to authorized and monetary risks, whereas supporting worldwide efforts to transfer past the ISDS system.
They stated Nigeria wants investment that helps growth with out compromising democratic accountability, environmental safety or the rights of its residents.
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