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Agence de Presse Ouest-Africaine

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Agence de Presse Ouest-Africaine

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Nigeria’s Top Legal Official Says P&ID Award Exposed Flaws in Global Investment Arbitration

By Kabir Isa

Nigeria’s near-catastrophic experience in the P&ID arbitration, where compound-interest calculations threatened billions in damages, has transformed the country into a leading advocate for overhauling the international investor-state dispute system. The Attorney-General’s core argument is that current rules leave damage calculations to the “whims” of individual arbitrators, creating opacity and unpredictability that erode trust for both states and investors. Nigeria’s reform agenda therefore prioritizes clear, consistent standards for damages, greater procedural transparency, and stronger protections for national sovereignty and domestic courts. The strategic takeaway is that a single flawed award can cripple a nation’s economy, making systemic reform of ISDS not a legal nicety but an economic imperative for developing countries.