Analyzing the Legal Regime For International Investment Arbitration In Nigeria Under the International Centre For Settlement of Investment Disputes

Investment Arbitration in Nigeria Under ICSID

Abstract

International investment arbitration under the ICSID framework represents a distinct regime of investor–State dispute settlement (ISDS), characterized by its delocalized structure, limited judicial interference, and self-contained enforcement mechanism. This paper critically examines Nigeria’s legal regime governing ICSID arbitration, focusing on the interaction between the ICSID (Enforcement of Awards) Act, the Nigeria Investment Promotion Commission Act, and the Arbitration and Mediation Act 2023. Using a doctrinal methodology grounded in statutory analysis, arbitral jurisprudence, and comparative authority, the study interrogates issues of consent, jurisdiction, tribunal constitution, third-party funding, security for costs, annulment, and enforcement. Particular attention is paid to the constitutional and procedural implications of automatic recognition and enforcement of ICSID awards by the Supreme Court of Nigeria, as well as the tension between treaty-based enforcement obligations and the doctrine of sovereign immunity at the execution stage. The paper evaluates whether Nigeria’s framework adequately balances investor protection with state sovereignty, especially in light of evolving global reform debates and the 2022 ICSID Rules. The study finds that although Nigeria has maintained an arbitration-friendly posture since ratifying the ICSID Convention, ambiguities persist within its enforcement architecture. Specifically, the absence of a defined limitation period for filing ICSID awards may generate procedural uncertainty, particularly where annulment proceedings are pending. The paper recommends targeted procedural reform through judicial rule-making to enhance coherence, constitutional clarity, and predictability within Nigeria’s investment arbitration regime.