President Muhammadu Buhari has been urged to establish a National Arbitration Policy via an Executive Order in order to ensure that Nigeria’s interests are protected in its commercial relationships with foreign investors.
Former president of Nigerian Bar Association (NBA), Mr Olisa Agbakoba (SAN), made the call in a letter written to President Buhari and titled: “Need for an Executive Order on a National Arbitration Policy,” copy of which was made available to newsmen in Lagos.
Agbakoba said the call was hinged on the recent enforcement order of US$9, 000, 000, 000 (Nine Billion US Dollars) made against Nigeria, by an English High Court, which he said was based upon an arbitration award secured by a company, Process and Industrial Developments Limited (P&ID).
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The former NBA president said the award secured by a foreign company against Nigeria, which he described as monumental, had grave and far-reaching implications for the country, considering that it represented almost 20 per cent of Nigeria’s foreign reserves, and 25per cent of its national budget.
Agbakoba, who noted that he wrote the letter purely out of concern for national interests, contended that National Arbitration Policy if put in place, would promote the national interest by ensuring resolution of disputes between Nigeria and foreign investors in relation to government contracts.
According to him, this will be determined by institutional arbitration mechanisms, which will have the seat of arbitration in Nigeria, asserting that some countries had already enacted such policy already.
“A National Arbitration Policy promotes the national interest by ensuring that the resolution of disputes between Nigeria and foreign investors in relation to government contracts will be determined by institutional arbitration mechanisms, which will have the seat of arbitration in Nigeria. Please note that some countries have already enacted National Arbitration Policies.
“Going forward, I suggest that we establish a National Arbitration policy, represented by an enactment of an Executive Order that will commence the process and procedure of creating the policy. This will ensure that Nigeria’s interests are protected in its commercial relationships with foreign investors,” he said.
Speaking further, Agbakoba said such enforcement order would have been avoidable, if the advocacy for a National Arbitration Policy had been embraced over twenty years ago in the country, calling for an immediate and urgent audit as there were indications that a significant number of “arbitral awards” were made against Nigeria.
“This incident would have been avoidable if the advocacy for a National Arbitration Policy had been embraced over twenty years ago.
“We recommend an immediate and urgent audit as we are aware that there are a significant number of arbitral awards made against Nigeria,” he said.
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