APPLICATION OF INVESTOR-STATE-DISPUTE SETTLEMENT IN FOREIGN DIRECT INVESTMENTS IN AFRICA: INVESTIGATING A CASE BEYOND PRE EMINENCE OF THE JUDICIARY IN NIGERIA

Abstract

The concept of foreign direct investment has always been approached by developing nations of Africa as a process towards drawing the right capital and skills from foreign investors as a way of attaining development. The concept has not been considered as mutually rewarding where it can be said and seen that the contracting states have equal status and mutual respect for each other. The study adopts doctrinal mode of investigation as it finds that states in Africa are desperate at engaging investor nations to extract and market huge deposit of natural deposit, the investor nations pursue their profit motives without regard to environmental safety and general rights of host communities. While the domestic courts do not indulge them, international arbitration panels with intimidating arbitral awards are usually deployed to regulate host nations’ exercise of their sovereign powers. The study therefore argues that notwithstanding the fact that decisions are given against the investor states through the domestic courts, investor states still have their ways, by pulling the strings of arbitration panels. The study concludes that states in Africa should draw their developmental plans along the path of indigenous technology and domestic innovations or should at best seek regional integration in Africa.