The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is promoting the use of its Alternative Dispute Resolution Centre (ADRC) to cut costs trapped in prolonged litigation in the country’s oil and gas sector.
The commission’s chief executive, Mr Gbenga Komolafe, declared this at a high-level roundtable consultative and sensitisation forum of the NUPRC’s ADRC, held in Lagos, noting that the centre represents a bold expression of the commission’s vision to institutionalise dialogue, equity, and inclusivity in Nigeria’s oil and gas industry.
H“The ADRC is more than a mechanism for resolving disputes. It is a strategic tool for promoting peace, stability, and investor confidence across the upstream petroleum value chain. We are determined to make ADRC not a last resort, but the first choice for dispute resolution in Nigeria’s oil and gas sector, Mr Komolafe, who was represented by the Commission Secretary and Legal Adviser, Mr Olayemi Adeboyejo said.
The NUPRC boss explained that the ADRC, established under the Petroleum Industry Act (PIA) 2021, operates as a neutral, sector-specific platform designed to mediate and resolve disputes arising from upstream operations in a timely, impartial, and cost-effective manner.
Mr Komolafe said since its inception, the ADRC has achieved several milestones including the inauguration of its Body of Neutrals in Lagos and Yenagoa in September 2024, and a comprehensive capacity-building programme earlier this year.
He explained that the Body of Neutrals comprises respected professionals including lawyers, retired judges, oil and gas experts, and other specialists selected for their deep industry knowledge, impartiality, and commitment to the principles of alternative dispute resolution.
“Through the ADRC, we are operationalising the PIA’s intent ensuring that disputes are resolved amicably and efficiently, preserving relationships that are essential to operational stability, investment protection, and social harmony,” he noted.
According to the NUPRC boss, the Commission’s proactive promotion of alternative dispute resolution has been particularly instrumental in mitigating tensions between operators and host communities.
The engineer disclosed that the ADRC offers the industry a sustainable pathway for peaceful coexistence.
“Dispute prevention and early engagement are key to building trust. By encouraging operators, host communities, and other stakeholders to embrace ADR mechanisms early, we are fostering a culture of mutual respect, accountability, and collaboration.”
He encouraged General Counsel, Legal Directors, and other corporate leaders across the oil and gas ecosystem to view the ADRC not as a regulatory instrument, but as a strategic ally in corporate governance and risk management.
“The sustainability and effectiveness of the ADRC depend on collaboration. Regulators, operators, host communities, and civil society must continue to work together to build trust, prevent disputes, and maintain a stable operating environment,” he added.
Mr Komolafe reiterated the NUPRC’s unwavering commitment to building an industry where dialogue replaces discord and cooperation replaces confrontation.
“The ADRC symbolises our belief that disagreements can be transformed into opportunities for understanding. It is a cornerstone of our broader reform agenda—anchored on transparency, fairness, and shared prosperity. Through this Centre, we are not only resolving disputes, but also reinforcing the confidence of investors and the trust of host communities in the Nigerian petroleum industry.”