Developing countries require investment in order to grow; investors, in turn, require protection for their capital. If the rule of law in developing countries is weak enough to permit those countries to disregard their contracts, investors will be less willing to invest in developing countries. Moreover, countries that uphold the rule of law, especially with respect to property rights, through a strong and independent judiciary achieve greater economic growth, create sustainable per capita wealth for her people, and are on a path to eliminative poverty. According to the Heritage Foundations’ 2018 Index of Economic Freedom “more than 60 percent of Nigeria’s 170 million people who still live in extreme poverty” and even though it is Africa’s largest economy and democracy, Nigeria scores a paltry 14th among 47 countries in Sub-Sahara Africa for economic freedom according to Heritage. Respecting the rule of law is essential for the long-term interests of Nigeria. Unfortunately, the award has grown close to $9 billion because of the Nigerian government’s failure to agree to an amicable settlement, its refusal to pay the award issued by a respected arbitration tribunal in London, and its increasing intransigence.
P&ID Facts > Myth/Fact > Nigeria should not be compelled to pay such a large sum as a developing country, which could impact the government’s spending on domestic priorities.