A LEGAL APPRAISAL OF STATE IMMUNITY AND ENFORCEMENT OF COMMERCIAL CLAIMS AGAINST SOVEREIGN STATES: NIGERIA IN FOCUS

Abstract

This study Legally Appraised State Immunity and Enforcement of Commercial claims against Sovereign States: Nigeria in focus, employing a doctrinal research methodology that analyzes primary legal sources (statutes, case law) and secondary literature (academic works, policy documents). Through comparative analysis with international standards and qualitative examination of judicial trends, the research reveals fundamental tensions in Nigeria's approach to sovereign immunity in commercial disputes. The findings demonstrate that Nigeria's legal framework embodies conflicting positions, while progressive instruments like the AMA (2023) adopt restrictive immunity principles aligned with global norms, other statutes (NSIA Act, 2011; CBN Act, 2007) maintain absolute immunity protections for state assets. This legislative inconsistency is compounded by erratic judicial interpretation, as seen in contradictory rulings between NNPC v. Lutin Investment (2006) and E.A. Industries v NERFUND (2009). The study identifies critical institutional barriers including the Attorney-General's veto power over enforcement and bureaucratic hurdles under the Sheriffs Act, 2004, which collectively undermine Nigeria's compliance with international obligations under treaties like the New York Convention, 1958. Theoretical analysis engages with competing doctrines of sovereign immunity, from realist power politics to neoliberal institutionalism, while highlighting Nigeria's non-ratification of the UN Convention on Jurisdictional Immunities (2004) as a significant gap in its legal architecture. Comparative assessment reveals Nigeria's deficiencies against leading jurisdictions like the US FSIA, (1976) and UK SIA, (1978); particularly regarding judicial training and enforcement mechanisms. The study concludes with targeted recommendations: (1) enactment of a Sovereign Immunity Act codifying commercial exceptions; (2) ratification of key international treaties; (3) judicial specialization and training programs; (4) institutional reforms to depoliticize enforcement. These measures would align Nigeria's regime with global best practices, balancing legitimate sovereign protections with commercial accountability to enhance foreign investor confidence and regional economic integration under frameworks like AfCFTA.