The Attorney-General of the Federation (AGF), Lateef Fagbemi, has declared that Nigeria will no longer serve as an easy target for predatory litigation and arbitration. This stance follows the country’s successful defence in an international arbitration case brought against the Federal Government.
The legal battle was instituted by Sunrise Power and Transmission Company Limited (Sunrise) and its principal, Leno Adesanya. The recent victory for the Nigerian state in this matter has prompted the AGF to issue a stern warning to entities that may attempt to use international legal forums to extract unfair settlements from the nation.
Fagbemi made these remarks while reacting to Nigeria’s victory in the international arbitration involving Sunrise Power and Leno Adesanya.
Implications of predatory litigation for the Nigerian state
Predatory litigation often involves parties using the complexities and high costs of international arbitration to pressure sovereign states into settling claims that may lack merit. For many developing nations, the threat of prolonged, expensive legal battles in foreign jurisdictions can lead to substantial losses for the national treasury.
By securing a favourable outcome in the Sunrise Power case, the Federal Government has established a precedent that it possesses the legal resolve to defend its interests in international tribunals. The AGF’s comments suggest a strategic shift towards more aggressive defence mechanisms to protect public funds from such legal manoeuvres.
The power sector and infrastructure industries have frequently been the subject of large-scale international disputes involving foreign and domestic investors. These cases often arise from contract disagreements, regulatory changes, or investment disputes that are escalated to international arbitration bodies.
The AGF’s position is intended to deter future claimants from viewing Nigeria as a jurisdiction where legal threats can easily be converted into financial concessions. The government’s success in this instance is expected to influence how international companies approach legal disputes with the Nigerian state moving forward.
The Office of the Attorney-General is currently reviewing its legal strategies to ensure more robust representation in future international disputes. The government’s next step involves strengthening its capacity to handle complex commercial arbitrations to mitigate the risk of unwarranted claims against the federation.
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