The Federal Government has inaugurated a nine-member committee tasked with reviewing Nigeria’s Bilateral Investment Treaties (BITs) and the Nigerian Investment Promotion Commission (NIPC) Act.
The Special Assistant to the President on Communication & Publicity, Kamarudeen Ogundele, announced this initiative via a statement issued on Friday.
According to the statement, the review is aimed at creating a modern legal framework that fosters a favorable investment environment while safeguarding national interests.
Strengthening Nigeria’s investment framework
At the committee’s inauguration, the Minister of Justice, Lateef Fagbemi (SAN), emphasized that the review aligns with Nigeria’s goal to advance legal reforms, attract foreign investments, and ensure a balanced trade environment.
- According to Fagbemi, BITs play an essential role in Nigeria’s economic diplomacy by providing a legal foundation for protecting foreign investments.
- However, he highlighted the need to update these agreements to reflect the changing global economic landscape.
- He emphasized the role of BITs in forging partnerships and securing prosperity, adding that they are also important in promoting confidence and stability for foreign investors.
Objectives of the BIT and NIPC Act review
The committee’s main goal is to build on past efforts and bring existing BITs in line with contemporary global standards.
This involves a thorough examination of current BITs to identify clauses that may be outdated or require renegotiation, modification, or even termination.
The review is also designed to leverage advancements made in the 2016 Nigeria-Morocco BIT, widely regarded as a new-generation model that emphasizes balanced bilateral investment.
The Minister outlined several key benefits the review seeks to achieve:
- Modernization of BITs: Aligning Nigeria’s BITs with current international standards and best practices.
- Enhanced Investor Protection: Ensuring foreign investors receive adequate legal protections while maintaining fairness and reciprocity.
- National Interest Safeguards: Protecting domestic industries and natural resources while fostering a conducive investment environment.
- Fair Treatment: Establishing equitable treatment between foreign and domestic investors, promoting balanced and fair negotiations in future BITs.
- Sustainable Development: Prioritizing Foreign Direct Investment (FDI) that supports Nigeria’s sustainable economic growth objectives.
- Technology Transfer and Capacity Building: Including provisions that encourage technology transfer, local skill development, and safeguarding of environmental, labor, and human rights standards.
The committee, chaired by Mrs. Funke Adekoya (SAN), comprises prominent legal experts and representatives from key sectors.
Members include Prof. Fidelis Oditah (SAN), Prof. Emilia Onyema, Babatunde Fagbohunlu (SAN), Mr. Oba Nsugbe (SAN), Mr. Tolu Obamuroh, Mr. Momoh Kadiri, a representative from the Federal Ministry of Industry, Trade, and Investment, and Ms. Aisha Rimi, Executive Secretary/CEO of NIPC.
The committee has a four-month mandate to complete the review.