Stakeholders have called for stronger legislative oversight and public participation in Nigeria’s treaty negotiation and review processes, as part of a broader reform agenda to protect the country’s regulatory autonomy from Investor-State Dispute Settlement (ISDS) exposure, and safeguard its energy transition efforts.

Nigeria has been engaged in investment treaty reform for several years, including the review of older-generation Bilateral Investment Treaties (BITs) and the development of a new approach to balancing investor protection with the government’s right to regulate in the public interest.

The call for stronger legislative oversight came at a two-day Multi-Stakeholder Roundtable on ISDS, Energy Transition and Investment Governance in Nigeria held in Port Harcourt, Rivers State.

The dialogue brought together policymakers, regulators, representatives of federal and state governments, civil society organisations, host community representatives, the media and  oil-producing communities to examine the implications of investment treaties for environmental accountability, community interests and Nigeria’s energy transition.

Participants said the ongoing reform provides an opportunity to strengthen transparency and ensure that investment agreements receive appropriate legislative and public scrutiny, particularly given their long-term implications for environmental regulation, energy transition, and the country’s right to pursue its development priorities.

Speaking at the opening of the dialogue, Policy Alert Executive Director, Tijah Bolton-Akpan, said: “Nigeria’s energy transition depends not only on policy commitments and technology deployment, but also on whether its investment treaty obligations enable or constrain the government’s ability to regulate in the public interest. As Nigeria navigates the tension between continued reliance on fossil fuel revenues and its energy transition commitments, it is timely to examine ISDS not simply as a legal issue, but as one with significant implications for energy governance, public finances and climate justice.”

Participants called for the National Assembly to have a more meaningful role in the consideration and ratification of investment treaties and agreements, arguing that legislative scrutiny should form part of the ongoing reform process rather than be treated as a separate issue.

The dialogue also highlighted concerns arising from developments in Nigeria’s oil and gas sector, including asset divestments, new offshore investments, and the expansion of gas infrastructure in line with the Decade of Gas Initiative 2021-2030. Participants called for greater attention to the potential investment and ISDS implications of these developments, as well as to environmental liabilities that may remain when companies exit oil and gas assets.

The roundtable recommended that the Federal Government strengthen legislative and public participation in investment treaty-making and reform; continue reviewing and, where appropriate, renegotiate or replace older-generation BITs; ensure that future agreements clearly protect the government’s right to regulate in the public interest; assess the potential ISDS implications of major energy and investment policies, including expanded gas infrastructure; and strengthen accountability for environmental liabilities arising from oil and gas divestments.

The Lead, Energy, Extractives and Climate Justice Programme at Policy Alert, Edidiong Dickson, said the country’s drive to attract foreign direct investment had increased the importance of reviewing the framework governing investment protection.

“Nigeria is on a sustained drive to attract more foreign direct investment. Most of these investments are premised on bilateral investment treaties, which we’ve entered into with some countries,” Dickson said.

Also ,  Chris Nku of Stakeholders Democratic Network, SDN, said investment agreements must be aligned with Nigerian laws and incorporate environmental and social safeguards.

Nku said the interests of host communities were often inadequately reflected when investment treaties were negotiated, despite the direct consequences of investments on communities where projects are located.

Nku further urged policymakers to ensure that investment treaties in oil and gas, mining and other extractive sectors do not establish obligations that conflict with domestic laws or national standards.

“We also said that these treaties should be domesticated with Nigerian laws,” he said.

Dickson also stressed the need for greater transparency in the negotiation of investment treaties, arguing that agreements with significant fiscal, environmental and community implications should not be negotiated without broader public participation.

Participants also called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to strengthen mechanisms for ensuring that companies exiting oil and gas assets remain accountable for legacy environmental liabilities.

The dialogue formed part of Policy Alert’s intervention, From Exit to Accountability: ISDS, Energy Transition Risks, and Responsible Divestment in the Niger Delta, which examines investment governance, environmental accountability and the implications of oil and gas divestments and emerging investments in offshore and gas infrastructure.

The event was organised by Policy Alert in partnership with Actionaid Nigeria and Stakeholder Democracy Network (SDN), with support from the Center for Research on Multinational Corporations (SOMO).
Participants were also equipped with tools to understand investment treaties and ISDS, investigate their implications especially in the fossil fuel industry, and monitor Nigeria’s investment governance reform process.