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Politics · Africa

Business leaders warn Nigeria's contract disputes could deter investors

Legal and business leaders warned that inconsistent contract enforcement, lengthy commercial disputes and government policies that undermine agreements could discourage long-term investment in Nigeria. At a Lagos summit, speakers called for dependable dispute resolution and described how regulatory uncertainty and prolonged court cases could put companies’ operations and capital at risk.

AI-assisted synthesis · Based on 2 outlets' reporting · Article text read from 1 of 2 outlets · 1 article captured only in partHow it's made

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Updat3 graphic: Nigeria
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What happened

Key facts

  • Legal and business leaders warned that inconsistent contract enforcement, lengthy commercial disputes and government policies that undermine agreements could deter long-term investment in Nigeria.
  • The summit's theme was ‘Investor Confidence and ADR: Strengthening Nigeria’s Investment Climate’.
  • Margaret Olele, Chief Executive Officer of the American Business Council Nigeria, warned regulatory inconsistencies and breaches of contractual commitments could lead companies to reconsider operations or leave Nigeria.
  • Bode Olanipekun said investors weigh both potential returns and the risk of losing capital in prolonged commercial disputes.
  • Charles Adeyemi Candide-Johnson, Managing Partner of Candide-Johnson Law, said capital goes where it is safe rather than relying only on the promise of profit.

The brief

Legal and business leaders warned at a Lagos summit that weak contract enforcement, drawn-out commercial cases and government policies that undermine agreements could discourage long-term investment in Nigeria.

The summit focused on “Investor Confidence and ADR: Strengthening Nigeria’s Investment Climate,” with speakers arguing that reliable ways to resolve disputes matter to investors weighing whether to commit capital.

Charles Adeyemi Candide-Johnson, Managing Partner of Candide-Johnson Law, said investment decisions turn on whether capital is safe, not just on the prospect of profit. His point framed contract enforcement as a practical concern for businesses considering long-term commitments, rather than a question of returns alone.

Margaret Olele, Chief Executive Officer of the American Business Council Nigeria, warned that inconsistent regulation and failures to honor contractual commitments could prompt companies to reconsider their operations or leave Nigeria. Her remarks connected shifting rules and agreements that are not upheld with decisions companies may make about continuing in the country.

Bode Olanipekun said investors assess potential returns alongside the possibility that commercial disputes could keep capital tied up or lead to losses. He raised a company case to illustrate the concern. According to Olanipekun, Company A sought court orders against Company B on October 27, 2015, but the court rejected its application.

Company A then brought the same case before another judge and secured the orders on December 4, 2015. The Court of Appeal discharged those orders on March 30, 2016, and the Supreme Court later affirmed their impropriety on July 13, 2018, Olanipekun said.

He questioned what Company B’s position would be a decade later if it had not recovered any money for a loss the court had found it suffered. The account does not state whether Company B ultimately recovered funds.

The warnings at the summit linked investor confidence to predictable contract enforcement, timely resolution of commercial disputes and government policies that do not undermine business agreements.

The speakers called for dependable dispute-resolution mechanisms, while Olele’s remarks highlighted the possibility that regulatory inconsistencies or contractual breaches could influence whether firms stay in Nigeria. The central concern they described was the risk that investors could face prolonged disputes and uncertainty about protecting or recovering capital.

Why it matters

  • Companies operating in Nigeria face the specific risk of capital becoming tied up in prolonged commercial disputes, according to Bode Olanipekun.
  • Margaret Olele identified a concrete business decision at stake: companies could reconsider their operations or leave Nigeria if regulatory inconsistency and contractual breaches persist.
  • The company dispute cited by Olanipekun involved court orders sought in 2015, discharged by the Court of Appeal in 2016, and later found improper by the Supreme Court in 2018.

What to watch next

  • Whether Nigerian courts enforce contracts consistently, the concern raised by legal and business leaders.
  • Whether commercial disputes are resolved promptly, given Olanipekun’s concern about capital tied up in lengthy cases.
  • Whether government policies and regulatory practices uphold existing business agreements, the issue Olele linked to companies reconsidering their operations or leaving.

How it's being covered

Coverage analysisShow details
2 source articles · 2 unique outlets
Outlet political mix: Too few rated· 1 Center · 1 unrated
Where the outlets are based: Africa 50% · Unknown 50%
Outlet political mix
Too few rated
Left
Center
Right
0 outlets
1 outlet
0 outlets
The marker shows coverage balance: each unique outlet counts once. 1 unrated outlet is not included.
Geography
Where the outlets covering this story are based.
2 unique outletsDominant coverage: Africa
Limited coverage
  • Coverage is currently limited to 2 outlets.
How we measure coverage

How outlets' accounts compare

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Timeline

Developments from this story's sources, dated background we compiled and fact-checked, and our earlier coverage. Each row says which.
  1. Nigeria ratified the Convention establishing the International Centre for Settlement of Investment Disputes.
    Background · compiled and fact-checked by Updat3
  2. Nigeria acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
    Background · compiled and fact-checked by Updat3
  3. It drew on the UNCITRAL Model Law on International Commercial Arbitration, adopted by the United Nations Commission on International Trade Law on June 21, 1985.
    Background · from our historical context
  4. Nigeria enacted the Arbitration and Conciliation Act as its principal statute for arbitration.
    Background · compiled and fact-checked by Updat3
  5. Nigeria enacted the Nigerian Investment Promotion Commission Act, establishing the commission and setting out investment protections and procedures.
    Background · compiled and fact-checked by Updat3
  6. Nigeria adopted a constitution establishing the current framework of federal and state courts.
    Background · compiled and fact-checked by Updat3
  7. Lagos established its Multi-Door Courthouse as a court-connected centre for mediation, arbitration and other settlement processes.
    Background · compiled and fact-checked by Updat3
  8. Lagos gave its Multi-Door Courthouse a statutory basis through the Lagos Multi-Door Courthouse Law.
    Background · compiled and fact-checked by Updat3

How we got here

Nigeria’s Arbitration and Mediation Act, signed on May 26, 2023, replaced the Arbitration and Conciliation Act of 1988 and updated the legal framework for resolving disputes outside court. It adopted provisions including emergency arbitration and third-party funding, building on Nigeria’s earlier efforts to make arbitration a formal part of commercial dispute resolution.

Nigeria acceded to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards on March 17, 1970, undertaking to recognize and enforce qualifying foreign awards.

Original sources

1 of 2 articles · Africa · Show all

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