Nigeria has called for United Nations-backed reforms of the international investor-state dispute settlement system.
Justice minister Lateef Fagbemi made Nigeria’s position clear during the heads of delegations roundtable meeting of the Chief Legal Advisors Forum 2026 in Singapore.
According to a statement on Thursday, Mr Fagbemi said Nigeria’s experience in the Process and Industrial Developments Ltd arbitration case reinforced the urgency of reforming the global framework for resolving disputes between investors and states.
“The reforms should reinforce rather than bypass domestic courts in Investors-States Disputes Settlement. The ISDS reforms would address the inadequacies and imbalances in the legal framework in order to protect investments and the country’s taxpayers,” he said.
Upon assuming office, the minister constituted a committee of experts to review Nigeria’s bilateral treaties to address the challenges.
The attorney general of the federation said Nigeria had become a strong advocate of clearer rules for calculating damages following its experience in the P&ID case, which, according to him, could have had a crippling effect on the country’s economy.
Mr Fagbemi pointed out that states have consistently expressed concern about the opacity of arbitral proceedings and the unpredictability of awards. He reiterated that Nigeria will continue to support reforms that enhance transparency of proceedings, consistency in arbitral reasoning, and predictability in outcomes.
“These elements are essential for investor confidence and state trust alike. The current position largely relies on the whims of each arbitrator or tribunal. For example, in the notorious case of P&ID, damages were calculated on the basis of compound interest, which would have had a crippling effect to the tune of billions of dollars,” he said.
The minister noted that states acknowledged that ISDS reform was not optional, as it was essential for maintaining the legitimacy of the international investment regime.
“Nigeria sees this consensus as a positive development: it signals that the global community understands the need for recalibration to ensure fairness, predictability, and development alignment. Many states, Nigeria included, believe that incremental adjustments will not address the structural imbalances embedded in the current system.
“There is increasing support for systemic reform, including clearer treaty standards, improved procedural safeguards, stronger accountability mechanisms, and more balanced rights and obligations for investors and states. This reflects a desire for a dispute‑settlement system that is durable and future‑proof,” he said.
Mr Fagbemi added that Nigeria saw significant value in the innovations, particularly in reducing costs, preventing escalation, and strengthening cooperative problem‑solving. He equally noted that strengthening national judicial institutions is central to building long‑term rule‑of‑law capacity and reducing over‑reliance on external arbitration.
He advised that there must be consideration for the integration of public interest in ISDS, as it must reflect contemporary global priorities, including climate action, environmental protection, human‑rights obligations, community welfare, and sustainable development.
The roundtable meeting of thehief Legal Advisors Forum brought together law and justice ministers, attorneys-general, and chief legal advisors from more than 40 jurisdictions across all five UN regional groups.
Discussions primarily focused on the ISDS framework, tackling issues regarding consistency, fairness, and legitimacy in international investment arbitrations.