Arbitration : A Panacea for Investment Disputes

Abstract

This article seeks to show arbitration as a dispute resolution mechanism in resolving or acting as a remedy for investment disputes both locally and internationally. Treatises are entered into between states in the bid of allowing nationals of a particular state to invest in another thereby bringing income both the foreign investor and the host state. However, owing to general human nature and sophistication in commerce, disputes are bound to arise. This article reveals that Bilateral Investment Treaty (BIT) are entered into which provides for arbitration clauses for settling any investment dispute that may arise between parties to the treaty. The article further shows that for the purpose of having a unified framework for settling investment disputes, the International Centre for Settlement of Investment Dispute (ICSID) was established through the Convention on the Settlement of Investment Dispute between States and Nationals of Other States. In Nigeria, certain statute makes provision for the settlement of investment dispute through arbitration. This article shows that some of this statute stipulates compulsory arbitration thereby negating consent and party autonomy. It is argued that this statutes be reformed as it goes against the jurisprudence of arbitration.