Port Harcourt, Nigeria — A coalition of civil society organizations, environmental researchers, and local community representatives has issued a formal call to the Nigerian federal government, urging an immediate and comprehensive review of the nation’s bilateral investment treaties (BITs). The demand, solidified in a communiqué released following a high-level roundtable in Port Harcourt on September 16, centers on the concern that existing investor-protection clauses may be effectively paralyzing the country’s ability to implement critical environmental regulations and energy transition policies.
The event, organized by Policy Alert in collaboration with the Social Development Integrated Network and ActionAid, with support from the Centre for Research on Multinational Corporations, highlighted the risks posed by Investor-State Dispute Settlement (ISDS) mechanisms. These legal frameworks, common in many of Nigeria’s international agreements—such as the 1992 bilateral treaty with the Netherlands—allow foreign multinational corporations to bypass local courts and challenge government policies in international arbitration tribunals if they perceive these actions as detrimental to their investments.
For activists and legal experts, the implications for Nigeria’s sovereignty are profound. “The threat of massive arbitration claims acts as a ‘regulatory chill,’ deterring authorities from adopting or enforcing necessary climate and environmental protections,” the roundtable participants noted. As the federal government pushes forward with its “Decade of Gas” initiative and manages the ongoing divestment of major oil assets in the Niger Delta—including sensitive operations like Shell’s investments in the Bonga field—the potential for legal confrontation with international energy giants looms large.
The participants argued that as Nigeria seeks to transition toward a more sustainable energy future, it cannot afford to be trapped by outdated treaties that prioritize profit protection over environmental remediation. The communiqué specifically demands that the government conduct a rigorous risk assessment of arbitration exposure linked to the expansion of gas infrastructure. Furthermore, it advocates for a complete departure from ISDS provisions in all future international agreements, arguing that these clauses undermine the state’s duty to ensure that environmental damage is addressed by the companies responsible.
To mitigate these risks, the coalition has proposed a series of policy shifts aimed at strengthening regulatory oversight. Central to these is the demand for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce strict, mandatory requirements regarding asset divestment. Under this proposal, international oil companies would be legally prohibited from finalizing the sale of assets until they have fully addressed or adequately secured the funding for the remediation of historical environmental degradation in host communities.
Beyond immediate environmental policy, the group called for a total overhaul of how Nigeria handles international trade agreements. Recommendations include:
- Enhanced Transparency: Making the details of investment disputes public to foster accountability.
- Democratic Oversight: Requiring mandatory, formal involvement of the National Assembly in the approval and ratification of all new investment treaties.
- Public Participation: Mandating public consultations prior to the signing of international agreements that could impact local communities and the environment.
By tightening the provisions of the Petroleum Industry Act, the coalition believes that Nigeria can better hold corporations accountable for their ecological footprint in the Niger Delta. As the country navigates the complex path between resource dependence and the global shift toward renewable energy, the call from Port Harcourt serves as a stern reminder that national environmental policy must be shielded from the reach of international private arbitration. The stakeholders emphasized that for Nigeria to achieve a just transition, it must first reclaim its regulatory autonomy, ensuring that the protection of the environment remains a non-negotiable priority of the state.
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