By Chibuzor Alli
Nigeria attracted $23bn in capital importation in 2025 and recorded foreign exchange reserves above $50bn, but the Federal Government says faster commercial dispute resolution and stronger institutions are critical to sustaining investor confidence.
The Lagos Multi-Door Courthouse has also facilitated the settlement or recovery of ₦86.85bn over five years, highlighting the financial benefits of resolving commercial disputes without prolonged litigation.
The figures came to the fore at the third annual Multi-Door Courthouses and Alternative Dispute Resolution Stakeholders’ Summit in Lagos, where government officials and judicial leaders called for stronger mechanisms to protect investments and improve Nigeria’s business environment.
The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said Nigeria’s improving economic indicators would not automatically translate into sustained investment unless businesses could rely on fair, efficient and predictable commercial justice.
“Investor confidence is not built by opportunity alone. Investors also consider the reliability and responsiveness of our institutions, the clarity of our regulations, the enforceability of contracts, and their ability to resolve commercial and investment disputes fairly and efficiently,” she said.
The summit, themed ‘Investor Confidence and ADR: Strengthening Nigeria’s Investment Climate,’ focused on the role of alternative dispute resolution (ADR) in reducing investment risks and strengthening the country’s commercial environment.
Capital inflows rise as government seeks productive investment
Oduwole disclosed that capital importation grew by 83 per cent year-on-year, rising from $5.5bn in the first quarter of 2025 to more than $10bn in the first quarter of 2026.
She also said Nigeria’s economy grew by more than four per cent in 2025 and maintained growth above that level in the first half of 2026.
According to the minister, inflation declined from 33.2 per cent in 2024 to 14.63 per cent in September 2026, while non-oil exports exceeded $6bn.
She added that the creative and digital sector contributed about 18 per cent of the country’s Gross Domestic Product.
Despite these developments, Oduwole said the government wanted to channel more investment into factories, infrastructure, processing and other productive enterprises rather than rely solely on portfolio investments.
Her remarks underscored the importance of building a business environment where investors can commit long-term capital with greater confidence in regulatory consistency and the enforcement of commercial agreements.
FG moves to strengthen arbitration framework
The Attorney-General of the Federation and Minister of Justice, Mr Lateef Fagbemi, SAN, said arbitration and mediation remained essential to building trust, reducing investment risks and supporting sustainable economic growth.
He disclosed that the Federal Government was pursuing reforms to strengthen Nigeria’s arbitration and alternative dispute resolution framework.
The initiatives include a review of the arbitration framework, the inauguration of a National Committee on the Review of the Arbitration and Mediation Act 2023, and the development of a National Policy on Arbitration.
Fagbemi said the measures were designed to position Nigeria as a leading arbitration hub in Africa.
He also commended the Lagos Multi-Door Courthouse, describing it as Africa’s first court-connected alternative dispute resolution centre.
Citing former United Nations Secretary-General Kofi Annan, the attorney-general said, “Litigation may win cases, but mediation wins peace”.
He urged stakeholders to strengthen dispute resolution mechanisms to support economic growth and improve Nigeria’s position in international commercial dispute resolution.
Lagos ADR court records ₦86.85bn in settlements
The Chief Judge of Lagos State, Justice Kazeem Alogba, said the Lagos Multi-Door Courthouse had facilitated the settlement or recovery of ₦86.85bn over five years.
He said the figure demonstrated the economic value of alternative dispute resolution, particularly where settlements enabled businesses and individuals to regain access to funds that might otherwise remain tied up in lengthy court proceedings.
The development highlights how mediation and arbitration can complement conventional litigation by helping parties resolve disputes more efficiently and reduce the financial uncertainty associated with prolonged legal battles.
For Nigeria, the challenge is to convert rising capital inflows and improving economic indicators into sustained productive investment. Government officials say predictable regulations, enforceable contracts and credible dispute resolution institutions will be central to achieving that goal.
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