Investors shun Nigeria over contract breaches, court delays, ex-parte orders

Nigeria's ability to attract and retain capital depends on investors' trust in the country's legal system, commercial dispute resolution and corporate governance, legal and business leaders have warned. The three-day Multi-Door Courthouses and Alternative Dispute Resolution Stakeholders Summit 2026, held in Lagos on October 19-20, focused on investor confidence and alternative dispute resolution (ADR) to strengthen Nigeria's investment climate.

According to Charles Adeyemi Candide-Johnson, Managing Partner of Candide-Johnson Law, capital is attracted by safety rather than just the promise of profit. "Capital goes where it is safe," he said. Legal experts identified weak contract enforcement, questionable ex parte orders, inconsistent government policies, and unpredictable dispute resolution as obstacles to investment.

They also stressed that investors were concerned not only about potential returns but also the risk of losing their capital in prolonged commercial disputes.

Olanipekun, Managing Partner of Wole Olanipekun & Co, cited the case of Company A and Company B, where Company A allegedly obtained court orders against Company B without hearing its side. Company B challenged the orders, and the Court of Appeal dismissed them, but the case still caused significant losses for Company B. Another example was Seplat Energy, where three shareholders obtained ex parte orders against the company’s CEO and board members, despite their combined holdings representing less than 0.002 per cent of the company’s issued shares.

The summit called for independent, commercially skilled arbiters with the ability to deliver final decisions efficiently. The more predictable and enforceable the court system becomes, the more likely investors are to commit capital to Nigeria.