Nigeria's Attorney General calls for UN arbitration reform to protect national sovereignty
Lateef Fagbemi, the Attorney General of the Federation and Minister of Justice, has urged the United Nations to reform international arbitration rules to safeguard the sovereignty of countries involved in investor-state disputes. Speaking at the Heads of Delegations Roundtable of the Chief Legal Advisors Forum 2026 in Singapore, Fagbemi emphasized that reforms to the Investor-State Dispute Settlement system should strengthen domestic courts and ensure fairness for both investors and states. He cited Nigeria's experience with Process and Industrial Developments Ltd. P&ID, where a controversial award based on compound interest would have severely impacted Nigeria's economy, as an example of the need for clearer rules on damages calculation. Fagbemi highlighted Nigeria's support for reforms that enhance transparency, consistency in arbitral reasoning, and predictability in outcomes. He also mentioned that Nigeria has reformed its arbitration framework and that a committee is reviewing Nigeria's bilateral investment treaties. The minister stressed that ISDS reform is essential for the legitimacy of the international investment regime, advocating for systemic changes including clearer treaty standards, improved procedural safeguards, and a more balanced distribution of rights and obligations. He also called for greater use of alternative dispute resolution and the incorporation of public interest considerations, such as climate action and human rights, into the evolving arbitratio
