Fagbemi Seeks Stronger UN Rules After Nigeria’s P&ID Arbitration Dispute

Attorney-General of the Federation Lateef Fagbemi has urged the United Nations to strengthen international arbitration rules after Nigeria’s long-running P&ID dispute.

Fagbemi said countries need clearer protection when disputes between states and investors move into arbitration, especially where awards could place heavy pressure on public finances.

Punch reported that he spoke on Thursday at the Heads of Delegations Roundtable of the Chief Legal Advisors Forum 2026 in Singapore, citing a statement from Kamarudeen Ajibade, Special Adviser to the President on communication and publicity in the Office of the AGF.

The minister said Nigeria’s experience with Process and Industrial Developments Ltd showed why damage calculations in investor-state disputes should be clearer and more predictable. He said the P&ID award, which relied on compound interest, could have hurt Nigeria’s economy if enforced.

Fagbemi said Nigeria supports reforms that make arbitration more transparent, consistent and fair to both investors and states. He also said domestic courts should not be bypassed where they can properly handle disputes.

The P&ID dispute arose from a failed 2010 gas processing agreement. A tribunal initially awarded billions of dollars against Nigeria, but a London court ruled in Nigeria’s favour in 2023 and refused to enforce the award after finding that it had been obtained through fraud and corruption.

Source: Punch