Arbitration as a Dispute Resolution Mechanism in Nigeria’s Upstream Petroleum Sector: A Review of ICSID Cases Involving Nigerian Parties

This study reviews the use of international arbitration, specifically proceedings before the International Centre for Settlement of Investment Disputes (ICSID), as a mechanism for resolving upstream petroleum disputes involving Nigerian state entities and international oil companies. Nigeria's exposure to investor-state arbitration has increased significantly following the PIA 2021 reforms, which altered fiscal and operational terms for existing contracts. Using a doctrinal analytical approach, the research examines the procedural records and outcomes of twelve ICSID cases involving Nigerian government agencies or NNPC affiliates from 2018 to 2024. Findings are compared against provisions of Nigeria's bilateral investment treaties and the arbitration clauses in standard NNPC joint operating agreements. The study finds that Nigeria has faced multiple adverse arbitral awards partly due to inconsistent government conduct and weaknesses in its treaty negotiation positions. The research recommends a comprehensive review of Nigeria's BIT portfolio and the establishment of a dedicated government arbitration defence unit within the OAGF. These findings are relevant to international investment law students and practitioners. Keywords: arbitration, ICSID, upstream petroleum, Nigeria, investment disputes.