Energy Arbitration and Investment Prospects in Nigeria under a Liberalized Market Economy

Abstract

Nigeria has rich energy profile while market liberalism is the national policy on energy governance, with
potential for promoting Foreign Direct Investment (FDI), energy availability and facilitating overall
development. However, Nigeria has a dysfunctional justice delivery system that can undermine the
prospects for energy trade and investment. Extant literature has not appreciated the nexus between an
effective dispute resolution and energy investment with implication for national development in Nigeria.
The study therefore, examines how arbitration as an Alternative Dispute Resolution mechanism can
promote energy investments and engender energy security under the liberalized market economy in Nigeria.
The study adopted the doctrinal methodology, with reliance on national and International regime on energy
arbitration such as the Nigerian Arbitration and Mediation Act 2023, Petroleum Industry Act(PIA) 2021,
Electricity Act (EA) 2023 and New York Convention 1958. The study finds that the anticipated economic
benefits from a liberalized energy economy may be undermined by a dysfunctional justice delivery system.
The PIA 2021 and EA 2023, being the major legislations on energy governance have Provisions on
arbitration in resolving energy disputes for increased FDI; investment in energy infrastructure and
promotion of energy security in Nigeria. Arbitration remains the preferred dispute resolution mechanism
with viability for entrenching a robust investment profile that promotes accessibility to energy and
engendering overall economic development in Nigeria. The study recommends for a comprehensive
national policy in creating a resilient energy arbitration industry as a tool for sustaining a vibrant and
liberalized energy economy in Nigeria.