The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has renewed efforts to promote the use of its Alternative Dispute Resolution Centre (ADRC) as a faster and more amicable mechanism for resolving conflicts in the oil and gas industry.
The Commission’s Secretary and Legal Adviser, Mrs Olayemi Adeboyejo, said there is a need to establish a trusted legal framework to strengthen the oil industry’s dispute resolution system.
Speaking yesterday at a sensitisation and consultation forum on the ADRC in Lagos, Adeboyejo, who represented the Chief Executive of the Commission, Gbenga Komolafe, said the initiative was aimed at deepening stakeholders’ understanding of the ADRC’s mandate and promoting efficient, collaborative, and sustainable dispute resolution in Nigeria’s upstream petroleum sector.
She explained that the meeting sought to understand why some industry operators remain reluctant to adopt the ADRC despite extensive sensitisation and training.
“Although several cases have been referred to the ADRC by the Commission, many companies still prefer litigation. Out of about five recent disputes, only two were voluntarily initiated through the ADRC process,” she said.
Adebayo noted that mediation under the ADRC is voluntary but binding once both parties reach an agreement. She added that the process promotes collaboration and mutual respect, enabling disputing parties to maintain business relationships after settlements.
“The ADRC offers numerous benefits, including speed, reduced costs, and less hostility compared to traditional court proceedings. We want stakeholders to embrace the ADRC not because they are compelled, but because they see it as the most efficient and effective path to resolution.”
She expressed optimism that the platform would continue to gain traction, emphasising that its success would strengthen the petroleum industry’s legal framework and facilitate faster, more sustainable conflict resolution.
Also speaking, the Chief Executive Officer of The Dispute Solutions Hub (TDSH) and Principal Partner at Adeyemi Law Firm, Mr Adeyemi Akisanya, described mediation as the future of effective and relationship-preserving dispute resolution in the oil and gas sector.
He said the conventional court system had become too congested, with some cases dragging on for decades and leaving behind broken relationships and failed businesses. According to him, mediation offers a quicker and more constructive way to resolve disputes by focusing on solutions that satisfy both parties while maintaining mutual respect and ensuring business continuity.
