The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has called on stakeholders in the oil and gas industry to embrace its Alternative Dispute Resolution Centre (ADRC) as a more efficient means of settling industry-related disputes and unlocking billions of dollars in trapped investments. The Commission said the ADRC is central to its efforts to strengthen fairness, transparency, and collaboration in Nigeria’s upstream petroleum sector.
NUPRC Chief Executive, Gbenga Komolafe, made this known during a high-level Roundtable Consultative and Sensitisation Forum organised by the commission in Lagos. Represented by the Commission’s Secretary and Legal Adviser, Olayemi Adeboyejo, Komolafe explained that the ADRC was established as a specialised, neutral platform for resolving disputes within the upstream industry while fostering sustainable relationships between operators and host communities.
According to him, the ADRC’s milestones include the inauguration of its Body of Neutrals in Lagos and Yenagoa in September 2024 and the completion of a comprehensive capacity-building programme earlier this year. He noted that through mediation and other alternative mechanisms, the centre ensures timely, impartial, and cost-effective resolution of disputes in line with global best practices. The ADRC’s board comprises seasoned lawyers, retired judges, and technical experts in oil and gas operations.
Komolafe described the ADRC as more than a dispute resolution mechanism, calling it a strategic tool for promoting peace, stability, and investor confidence across Nigeria’s upstream value chain. He said the initiative operationalises key provisions of the Petroleum Industry Act (PIA), which prioritises collaboration and amicable settlement of disputes.
“We are determined to make ADRC not a last resort, but the first choice for dispute resolution in Nigeria’s oil and gas sector,” Komolafe said, adding that early engagement and dialogue can help prevent conflicts and build trust among stakeholders. He urged operators, host communities, and civil society to view the ADRC as a strategic ally in corporate governance and risk management rather than a regulatory obligation.
In her remarks, NUPRC Secretary and Legal Adviser, Olayemi Adeboyejo, said Nigeria cannot afford to have billions of dollars in potential investment tied up in prolonged litigation. She noted that many cases in the oil sector take nearly a decade to reach final judgment, which undermines investor confidence. “When people say ‘let the court decide,’ they often mean ‘see you in ten years.’ That’s not justice delayed; that’s capital detained,” she said.
Adeboyejo described the ADRC as a “strategic de-bottlenecking mechanism” that provides an efficient, confidential, and cost-effective alternative to litigation. She highlighted global data showing that mediation resolves 80 to 90 percent of referred disputes within days or weeks. To ensure neutrality, she explained, the ADRC is guided by three principles: an independent body of neutrals, joint appointment and payment of mediators by disputing parties, and strict confidentiality of proceedings.
The sensitization forum attracted participants from international oil companies, independent producers, the Petroleum Technology Association of Nigeria (PETAN), Host Community Development Trusts (HCDTs), and other industry stakeholders, creating an avenue for dialogue on the centre’s role and adoption processes.
Speaking at the event, PETAN Vice Chairman, Obi Uzu, commended the initiative but called for a clear legal framework that mandates inclusion of ADR provisions in standard oil and gas contracts. “If ADR isn’t referenced in contracts, resolutions can’t be enforced. Legal backing is key to building trust and making the system work,” he said.
Also speaking, Chief Executive of Dispute Solutions Hub, Adeyemi Akinsanya, described mediation as the future of dispute resolution in Nigeria’s oil and gas industry. He said, “Most courts are congested, and cases can take 20 to 30 years. Mediation offers a quick, efficient, and practical way to preserve business relationships.”
Through the ADRC, NUPRC aims to transform disputes into opportunities for understanding and cooperation, fostering an environment where dialogue replaces discord and investor confidence in Nigeria’s petroleum industry continues to grow.
