NUPRC moves to end costly oil industry disputes
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reiterated its commitment to promoting peace, transparency, and fairness in Nigeria’s oil and gas industry through the adoption of the Alternative Dispute Resolution Centre (ADRC) as the preferred mechanism for resolving industry-related conflicts.
Speaking at the Roundtable Consultative and Sensitization Forum on the ADRC, held at the Four Points by Sheraton, Victoria Island, Lagos, the Commission Chief Executive, Engr. Gbenga Komolafe, OFR, and the Commission Secretary/Legal Adviser, Olayemi Adeboyejo, said the Commission is determined to make the ADRC the most trusted and efficient dispute resolution platform in the nation’s upstream petroleum sector.
Komolafe emphasized that the ADRC was established as a specialized and neutral platform for addressing disputes in the upstream oil and gas sector, ensuring timely, impartial, and cost-effective conflict resolution consistent with global best practices.
“This forum reaffirms our collective resolve to institutionalize dialogue, equity, and inclusivity in resolving industry-related disputes,” Komolafe stated. “The ADRC embodies our vision of fostering a resilient, investor-friendly petroleum sector anchored on justice and fairness.”
He commended President Bola Ahmed Tinubu for his leadership in implementing the Petroleum Industry Act (PIA) 2021, describing the law as a transformative step that repositioned the sector for accountability and sustainable growth. Komolafe noted that under the Renewed Hope Agenda, the Commission is deepening reforms to strengthen institutions, build investor confidence, and enhance cooperation between operators and host communities.
He further explained that the ADRC aligns with Sections 234 to 248 of the PIA, which provide a legal framework for host community development and dispute resolution. “The ADRC operationalizes these statutory provisions by ensuring disputes are resolved amicably and efficiently, preserving relationships vital to investment stability and social harmony,” he said.
On his part, Adeboyejo said the forum was convened to address one of the most persistent impediments to progress in the sector the high cost, long duration, and uncertainty of conventional court litigation.
“In Nigeria, when people say ‘let the court decide,’ what they really mean is ‘see you in ten years,’” Adeboyejo remarked humorously. “By that time, oil prices, companies, and even lawyers may have changed.”
He stressed that Nigeria cannot afford to have billions of dollars in potential investments trapped in prolonged court cases while other countries move ahead with reforms. “The world is moving at the speed of data; we cannot continue to resolve our disputes at the speed of snail mail,” he said.
According to him, the ADRC serves as a strategic, efficient, and confidential alternative to litigation, offering parties an opportunity to resolve issues within days or weeks instead of years. Citing data from the Centre for Effective Dispute Resolution (CEDR), he noted that up to 90 percent of cases referred to mediation are resolved successfully within a short time.
Adeboyejo clarified that the ADRC is not a courtroom but a facilitator of resolution, guided by three principles neutrality, party autonomy, and confidentiality. “The regulator is not the adjudicator, and the ADRC is not a judge of guilt or innocence,” he said. “Mediators are independent, jointly appointed by both parties, and settlements reached are enforceable as consent judgments.”
He also explained that the ADRC’s mediators possess deep industry knowledge, capable of distinguishing “between a wellhead and a headache,” which gives the Centre an edge in managing technical disputes unique to the oil and gas sector.
Both officials called for stronger collaboration between regulators, operators, host communities, and legal practitioners to strengthen trust and ensure early adoption of mediation before conflicts escalate.
“Our objective is to make alternative dispute resolution not a last resort, but the first choice in Nigeria’s upstream industry,” Komolafe said. “We envision an oil and gas sector where dialogue replaces discord, cooperation replaces confrontation, and understanding replaces uncertainty.”
Adeboyejo echoed the same sentiment, urging stakeholders to provide honest feedback to help refine the ADRC’s processes and build an industry culture rooted in peace, partnership, and progress.
“The ADRC enhances your internal frameworks,” he added. “It provides a cooperative and confidential path before disputes become costly legal battles. Our shared goal is to build an industry where disputes no longer stall investment but are resolved swiftly and fairly.”