In
a bid to release billions of dollars in potential investments that are trapped
in prolonged litigation, the Nigerian Upstream Petroleum Regulatory Commission
(NUPRC) is promoting the use of its Alternative Dispute Resolution Centre
(ADRC).
The
Commission Chief Executive, Engr. Gbenga Komolafe, declared this at a
high-level Roundtable Consultative and Sensitization Forum of the NUPRC’s
Alternative Dispute Resolution Centre (ADRC) held in Lagos on Wednesday,
November 12, 2025.
Komolafe,
who was represented by the Commission Secretary and Legal Adviser, Olayemi
Adeboyejo, said ADRC represents a bold expression of the NUPRC’s vision to
institutionalize dialogue, equity, and inclusivity in Nigeria’s oil and gas
industry.
He
said, “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.”
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.
Engr.
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 programmed earlier this
year.
He
explained 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 operationalizing 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
CCE disclosed that the ADRC offers the industry a sustainable pathway for
peaceful coexistence.
He
said, “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.
Komolafe
reiterated the NUPRC’s unwavering commitment to building an industry where
dialogue replaces discord and cooperation replaces confrontation.
The
CCE said, “The ADRC symbolizes 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.”
Speaking
later at the event, the Commission Secretary/ Legal Adviser, Olayemi Adeboyejo
said ADRC is necessary in today’s global and domestic landscape because Nigeria
cannot afford to have billions of dollars in potential investment trapped in
prolonged litigation.
She
noted, "The ADRC was therefore conceived as a strategic de-bottlenecking
mechanism — an efficient, confidential, and cost-effective alternative to
litigation."
The
sensitization forum drew participants from International Oil Companies (IOCs),
independent producers, PETAN, Host Community Development Trusts (HCDTs), and
other industry players, provided a platform for open dialogue on the Centre’s
processes, functions, and adoption pathways.
Eniola
Akinkuotu
Head,
Media and Strategic Communication.
