Hold hearing on Nigeria’s investment treaty risks now, Policy Alert tells National Assembly 

A civil society organisation, Policy Alert, has referred to as on the related Senate and House of Representatives committees to convene a joint hearing on Nigeria’s publicity to worldwide investment treaty disputes, warning that long-term petroleum commitments may constrain future regulation and expose public funds to authorized risks.

The organisation made the decision on Wednesday in Uyo, Akwa Ibom State, through the launch of its report, Investment Protection and Nigeria’s Energy Transition: Implications for Environmental Accountability and Regulatory Space.

It requested the National Assembly to train its oversight duty over Nigeria’s investment treaty framework, the findings of a federal committee established in November 2024 to evaluate bilateral investment treaties, and up to date fiscal incentives for offshore petroleum investments.

Policy Alert stated Nigeria was attracting international investment with out adequately assessing the long-term implications for public income, environmental accountability and the federal government’s capability to vary insurance policies within the public curiosity.

The report comes as Nigeria seeks to draw contemporary capital into offshore petroleum manufacturing and develop gasoline infrastructure underneath its Decade of Gas initiative.

For the Niger Delta, the place oil-producing communities have endured a long time of air pollution, gasoline flaring and harm to livelihoods, the organisation stated the central query was whether or not investment agreements would protect the federal government’s capability to carry buyers accountable for environmental hurt.

Treaty disputes, regulatory risks

The report examines how bilateral investment treaties and investor-state dispute settlement (ISDS) provisions may have an effect on Nigeria’s vitality insurance policies and environmental enforcement.

ISDS permits qualifying international buyers to carry claims towards host governments earlier than worldwide arbitration tribunals over alleged breaches of investment protections.

Policy Alert recognized three main considerations: the potential price of future coverage adjustments, inadequate proof of the long-term public advantages of fiscal incentives and gasoline initiatives, and unequal entry to worldwide treatments for international buyers and affected communities.

The organisation cited two investment arbitration proceedings involving Shell-related entities and Nigeria, initiated in 2007 and 2021 underneath the Nigeria-Netherlands bilateral investment treaty. Both circumstances have been discontinued with out a legal responsibility dedication.

The circumstances present that events have invoked treaty arbitration in disputes involving Nigerian petroleum investments, though neither proved that Nigeria breached its treaty obligations.

The report additionally cited the pending Jupiter Lithium arbitration as proof that Nigeria’s publicity to investment disputes extends past the petroleum trade to vital minerals.

PREMIUM TIMES just lately reported that 89 civil society organisations have requested the federal authorities of Nigeria to publish the nation’s investment treaty evaluate.

Policy Alert warned that treaty protections, together with provisions on truthful and equitable therapy and expropriation, may change into related when future authorities choices have an effect on qualifying international investments.

It cautioned that such provisions may make environmental regulation, tax reforms and stronger methane controls extra contentious or costly.

The organisation, nonetheless, acknowledged that its analysis had not confirmed that ISDS had immediately precipitated Nigeria to desert any particular environmental reform.

It stated its concern was that the potential of costly arbitration may discourage governments from introducing measures meant to guard the general public curiosity.

Offshore incentives, gasoline growth

The report raised questions on Nigeria’s offshore investment technique, together with the event of Bonga North, Bonga South West/Aparo, and Ima Gas.

It additionally examined the deep-offshore incentive framework introduced in August 2026, which is projected to unlock as much as $50 billion in investment.

Policy Alert stated the projected investment determine mustn’t, on its personal, be handled as proof of financial worth for Nigeria.

It referred to as for clear assessments of income forgone by way of incentives, anticipated public advantages and the implications of long-term commitments for future regulation.

The organisation raised comparable considerations in regards to the Decade of Gas initiative, arguing that elevated manufacturing wouldn’t essentially translate into reasonably priced home vitality, industrial improvement or sustained demand.

It cited a 2026 assessment by the Natural Resource Governance Institute, which recognized gaps between gasoline manufacturing ambitions and projected supply, weaknesses in home gasoline markets and uncertainty over future worldwide demand.

According to Policy Alert, committing to long-term gasoline infrastructure with out credible demand assessments may improve Nigeria’s fiscal and authorized publicity whereas leaving the nation with belongings of unsure future worth.

The organisation stated the federal government should assess whether or not the financial advantages of main initiatives justify the incentives and obligations hooked up to them.

Call for publication of treaty evaluate

Policy Alert’s suggestions embody publishing the findings of the federal committee established by the Attorney-General of the Federation, Lateef Fagbemi, to evaluate Nigeria’s bilateral investment treaties and the Nigerian Investment Promotion Commission Act.

The committee was inaugurated on 8 November 2024 as a part of efforts to replace the nation’s investment framework and steadiness investor safety with nationwide pursuits.

Policy Alert requested the Federal Ministry of Justice to reveal the evaluate’s standing, determine treaties requiring renegotiation and publish a timetable for implementing its suggestions.

It proposed an annual Investment Treaty Accountability Scorecard, to be developed by civil society organisations, to watch treaty reforms, arbitration developments, fiscal transparency, legislative oversight and environmental safeguards.

Investment versus accountability

The organisation’s govt director, Tijah Bolton-Akpan, stated Nigeria wanted to evaluate international investment not solely by the capital it attracted but additionally by the obligations it created and the regulatory authority the nation retained.

Policy Alert stated it didn’t oppose international investment, stressing that Nigeria wanted productive capital and that buyers have been entitled to truthful therapy.

It maintained, nonetheless, that investment promotion mustn’t jeopardise public income, environmental safety or the federal government’s capability to pursue a simply vitality transition.

The organisation stated a extra accountable investment framework would enable Nigeria to draw capital whereas preserving its capability to implement environmental obligations and defend communities affected by extractive actions.