P&ID case would have crippled Nigeria’s economy – Fagbemi

The Attorney-General of Nigeria, Prince Lateef Fagbemi, warned that the contentious Process and Industrial Developments (P&ID) arbitration case could have severely damaged the country's economy. Speaking at the Chief Legal Advisors Forum (CLAF) 2026 in Singapore, Fagbemi advocated for reforms to Nigeria's arbitration framework to safeguard national sovereignty and taxpayers.

The legal advisor emphasized the need for greater clarity in calculating damages in international arbitration, citing the P&ID case where compound interest was used, potentially resulting in billions of dollars in damages. Nigeria, he stated, advocates for reforms that strengthen domestic courts instead of circumventing them in resolving disputes between investors and states.

The minister also pushed for increased transparency, consistency, and predictability in arbitration proceedings to build investor and state confidence. Nigerian officials are currently reviewing bilateral investment treaties and commitments under multilateral agreements to address challenges in the investment framework. Fagbemi stressed the importance of national judicial institutions in building long-term rule-of-law capacity and reducing reliance on external arbitration while ensuring that investment protections do not infringe on legitimate public-interest regulations such as environmental protection, human rights, community welfare, and sustainable development.