Investment treaty arbitration—Nigeria—Q&A guide

The following Arbitration practice note provides comprehensive and up to date legal information covering:

  • Investment treaty arbitration—Nigeria—Q&A guide
  • 1. What is the prevailing attitude towards foreign investment?
  • 2. What are the main sectors for foreign investment in the state?
  • 3. Is there a net inflow or outflow of foreign direct investment?
  • 4. Describe domestic legislation governing investment agreements with the state or state-owned entities.
  • 5. Identify and give brief details of the bilateral or multilateral investment treaties to which the state is a party, also indicating whether they are in force.
  • 6. If applicable, indicate whether the bilateral or multilateral investment treaties to which the state is a party extend to overseas territories.
  • 7. Has the state amended or entered into additional protocols affecting bilateral or multilateral investment treaties to which it is a party?
  • 8. Has the state unilaterally terminated any bilateral or multilateral investment treaty to which it is a party?
  • 9. Has the state entered into multiple bilateral or multilateral investment treaties with overlapping membership?
  • More...

arbitration'>Investment treaty arbitration—Nigeria—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to investment treaty arbitration in Nigeria published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2021).

Authors: ALP NG & Co—Olasupo Shasore; Bello Salihu

1. What is the prevailing attitude towards foreign investment?

Foreigners are welcome to invest freely in any enterprise in Nigeria (except those listed on the negative list as contained in the Nigerian Investment Promotion Commission Act, Cap N117, Laws of the Federation of Nigeria 2004 (the NIPC Act), that is, businesses that produce arms, ammunition, military and paramilitary clothing and equipment, narcotic drugs and psychotropic substances, etc), and may freely repatriate capital, interest, profits or dividends in freely convertible currency. Nigerian laws protect foreign investments from nationalisation, expropriation or compulsory acquisition except in rare cases and upon the payment of adequate compensation. They also provide incentives for investments and create an effective dispute resolution process for investor-state arbitration.

Generally, foreign investment is encouraged in most sectors of the Nigerian economy. However, the Nigerian government is attempting to increase and promote indigenous participation in major sectors, including the information and communication technology and oil and gas sectors, through the local content policy. The local content policy in Nigerian laws favours Nigerians and Nigerian companies in these sectors and requires multinational companies operating in these sectors to,

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