Why rule of law is critical for economic growth, by Osinbajo

Decries delays in justice administration

Former Vice President of Nigeria, Prof Yemi Osinbajo (SAN), has underscored the critical role of the rule of law in driving economic growth and fostering investor confidence.

He warned that systemic delays and inefficiencies in the administration of justice threaten Nigeria’s economic development.

Osinbajo gave this warning at the 19th yearly lecture of ÁELEX held in Lagos with the theme: “Rule of Law and Economic Development: The Nigerian Experience.”

He emphasised that genuine progress depends on the clarity, fairness, and equal enforcement of laws.

“The rule of law really means that laws are clear, fairly applied, and equally enforced, so people, businesses, and governments all play by the same rules. No one, not even the government or its agencies, is above the law,” he stressed.

He explained that a credible legal system gives investors and citizens confidence that outcomes are determined by law rather than by influence or power.

Osinbajo noted that the rule of law and administration of justice are inseparable, arguing that laws without effective enforcement are meaningless.

“The best laws are useless if the mode of enforcement is weak, corrupt, or inefficient,” he said.

Addressing the broader link between legal institutions and national prosperity, the former vice president explained that economic development should be defined by improvements in people’s quality of life, not merely by investments or big business.

“True development is about the real improvement in the quality of life of ordinary people. It requires us to focus on people rather than just on programmes and projects,” he said.

Citing recent findings by the Justice Research Institute, Osinbajo decried the alarming delays in Nigeria’s judicial process.

According to him, an average commercial case spends about four years and two months at the High Court, three years and four months at the Court of Appeal, and six years and six months at the Supreme Court, totaling nearly 13 years from filing to final judgment.

“These delays are disastrous for business and investment. The court is a taxpayer-funded public resource. Wasting or abusing its finite time without strict consequences will eventually discredit the system and deter investors,” he warned.

To address these challenges, Osinbajo called for reforms, including the imposition of strict sanctions for unnecessary adjournments, the digitisation of court processes, and the establishment of specialised commercial courts.

He lauded Lagos State for pioneering commercial courts, noting that such models could help expedite case resolution.

He also urged the adoption of transparent, technology-driven systems for case management, including digital dockets and online access for litigants and lawyers, adding that “These are no longer rocket science. Everyone else, including other African countries, is doing these things.”

On alternative dispute resolution, Osinbajo pointed out that arbitration could provide faster outcomes but lamented that excessive court intervention often undermines its effectiveness.

In his remarks, Lagos State Governor, Babajide Sanwo-Olu, described the rule of law as the unseen infrastructure of a prosperous society.

Sanwo-Olu, who was represented by the state Attorney General and Commissioner for Justice, Lawal Pedro, said: “When justice is swift and impartial, business grows, but when the law is uncertain or inconsistently applied, growth stagnates and innovation declines.”

He cited Lagos State’s legal and institutional reforms as drivers of its transformation into Nigeria’s commercial hub, stressing that the state’s success was the result of deliberate policies and bold judicial innovation.

However, he cautioned residents against disregarding laws and regulations, urging voluntary compliance with state policies on taxation, environmental standards, and physical planning.

“Voluntary compliance with laws is not a weakness; it is the foundation of every civilised society.”

A high-level panel session followed, chaired by Chairman of the Pension Commission (PenCom), Otunba Opeyemi Agbaje, with distinguished discussants including Chairman of The Bi-Courtney Group, Dr Wale Babalakin (SAN); Director-General, Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona and Managing Director, Financial Derivatives Company Limited, Mr Bismarck Rewane.

The panel explored Nigeria’s rule of law landscape, addressing how governance reforms, judicial efficiency, and policy coherence can strengthen economic resilience and attract long-term investments.

Earlier in his welcome remarks, Founding Partner and Head of Tax at AELEX, Mr Theophilus Emuwa, reaffirmed the firm’s commitment to advancing meaningful conversations that shape legal practice, governance, and economic progress across Africa.

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