Understanding Investment Treaty Arbitration: Implications for Nigerian Government Contracts with Foreign Investors

Nigeria's engagement with bilateral investment treaties and their associated dispute resolution mechanisms has resulted in a number of costly international arbitration proceedings, with significant financial implications for the federal and state governments. The management of investment treaty obligations requires sophisticated legal understanding that extends beyond domestic contract law into the specialised domain of international investment law. This study examines the legal framework of investment treaty arbitration as it applies to Nigerian government contracts with foreign investors, drawing on selected ICSID and UNCITRAL arbitration cases involving Nigeria from 2015 to 2024. A professional legal research methodology was adopted, combining doctrinal analysis of applicable BIT provisions with structured interviews conducted with federal Ministry of Justice international law officers and commercial arbitration practitioners. Secondary sources include ICSID case databases, UNCTAD investment policy reports, and Nigerian investment law scholarship. Findings reveal that the Nigerian government has faced significant liability exposure in investment treaty arbitrations arising from regulatory changes, contract termination, and judicial enforcement actions affecting foreign investor interests. Awareness of BIT obligations among state-level procurement officials remains critically low. Recommendations include mandatory BIT compliance training for government legal officers, pre-contract BIT risk assessment for major foreign investment agreements, and renegotiation of outdated treaty provisions that impose excessive fiscal limitations. This research provides professional guidance for government legal practitioners managing international investment relationships. Keywords: investment treaty, arbitration, foreign investors, Nigerian government, ICSID.