By Daniel Edu
The House of Representatives has commended Minister of Justice and Attorney General of the Federation (AGF), Lateef Fagbemi, for Nigeria’s legal achievements in 2024, while also highlighting areas requiring improvement, particularly regarding foreign arbitration.
During his defense of the 2024 budget performance and projections for 2025 on Tuesday, the Chairman of the House Committee on Justice, Olumide Osoba, praised Fagbemi for key judicial victories, including the landmark Supreme Court ruling on local government autonomy.
Landmark Judicial Rulings
Osoba highlighted the July 11, 2024, Supreme Court decision affirming the financial and administrative autonomy of local governments.
“This ruling declared it unconstitutional for state governors to withhold local government funds or arbitrarily dissolve councils,” Osoba said, noting that the judgment strengthens grassroots democracy and enhances local service delivery.
He also lauded the Ministry’s success in the $11 billion Process and Industrial Developments (P&ID) case. Judge Robin Knowles of the Business and Property Court in London ruled in favor of Nigeria, quashing the arbitration award sought by P&ID.
“This significant legal victory safeguarded our national assets and preserved economic stability, exemplifying the robustness of our legal system,” Osoba added.
Arbitration Concerns
Despite these successes, the Committee criticized the preference of foreign investors to take legal actions against Nigeria in foreign jurisdictions. Osoba called for a review of contracts with foreign investors to prioritize Nigerian laws and arbitration.
“It is troubling that foreign investors conduct business in Nigeria but insist on arbitration outside the country under foreign laws,” Osoba stated, emphasizing the importance of the Arbitration and Prosecution Act of 2023 in addressing this issue.
Fagbemi’s Response
In response, Fagbemi acknowledged the need for reforms in how arbitration cases are handled. He stressed the importance of engaging experienced legal professionals in drafting agreements and representing Nigeria in commercial disputes.
“Some agreements were mishandled by lawyers lacking expertise in specific commercial areas,” Fagbemi said. “We now prioritize competence over patronage when assigning cases, ensuring legal teams have the necessary training and experience.”
He added that efforts are underway to collaborate with state governments to ensure foreign agreements align with national rules and processes.
The discussions underscore the critical need for improved legal practices and arbitration frameworks to protect Nigeria’s interests and reinforce its judicial integrity.
