Libyan Foreign Bank files ICSID claim against Burkina Faso over nationalisation of BCB

Image: Syced / Wikimedia Commons, CC0

Eversheds Sutherland's Paris office represents the Libyan state bank in its challenge to the 2024 takeover of Banque Commerciale du Burkina.

Jurisdiction Burkina Faso, Multi-jurisdictionalPractice Banking and Finance, Dispute Resolution and ArbitrationSector Banking and Financial Services

The Libyan Foreign Bank, owned by the Central Bank of Libya, filed a request for arbitration against Burkina Faso at the International Centre for Settlement of Investment Disputes (ICSID) on 17 August 2026, challenging the 2024 nationalisation of Banque Commerciale du Burkina (BCB). The bank is represented by the Paris office of Eversheds Sutherland, according to African Law & Business.

Background

BCB was established in 1997 as a 50-50 joint venture between the Libyan Foreign Bank and the Burkinabè State. The government nationalised it in May 2024, stating that its Libyan partner had failed to provide expected support. The Libyan bank said it had complied with the founding agreement, OHADA law and WAMU decisions, and described the government’s proposals as “terms of submission”.

Context

Since 2022 the transitional government has nationalised strategic assets, including two gold mines and exploration licences in June 2025, and faces an ICSID claim by Sarama Resources over a cancelled exploration permit. Burkina Faso has also announced its withdrawal from ECOWAS as part of the Alliance of Sahel States.

Why it matters

Banking is a regulated sector under the West African Monetary Union and the Banking Commission, so the dispute will raise questions about the interaction between national measures and regional banking supervision. For investors in the Sahel, the case adds to the body of claims testing whether treaty protection and ICSID jurisdiction remain effective against governments that have distanced themselves from regional institutions. Enforcement of any award will be the harder question.