The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has advocated the establishment of more Alternative Dispute Resolution Centres (ADRC) within the upstream oil and gas sector in oil-producing regions.

NUPRC’s chief, Gbenga Komolafe, made the call on Thursday during a Stakeholders’ Engagement and Consultation session on the Draft Rules of Procedure for the ADRC in Lagos.

Mr Komolafe explained that establishing these centres is crucial for stabilising and resolving disputes related to commercial, production and host community issues.

Mr Komolafe noted that this initiative significantly advances the efficiency, fairness, and effectiveness of alternative dispute resolution within the upstream industry.

“As we gather here, our shared goal is to ensure that the ADRC operates with the highest standards of transparency, integrity, and responsiveness in line with the needs of the industry,” he said.

He highlighted that the ADRC was established in 2021, reflecting the NUPRC’s commitment to providing a robust framework for timely dispute resolution.

Mr Komolafe emphasised that ADRC mechanisms were essential for easing the burden on the courts, reducing litigation costs and fostering a collaborative approach to dispute resolution. He stressed the importance of creating a harmonious business environment to ensure the sector’s continued growth.

“The timely and equitable resolution of disputes in this critical sector is paramount,” he added.

Mr Komolafe further stated that the ADRC aims to deliver an innovative, efficient, and cost-effective approach to dispute resolution, reinforcing industry stability and promoting sustainable growth. He underscored the importance of collaboration and active stakeholder participation in developing the ADRC Draft Rules of Procedure.

Olayemi Anyanechi, NUPRC’s secretary and legal adviser, noted that the agency had been working diligently to make ADRC centres a source of pride for Nigeria and Africa. She mentioned that NUPRC had invited stakeholders, mediators, arbitrators, industry leaders, and business lawyers to review and refine the ADRC laws and procedures.

According to her, once the final draft is agreed upon, the Commission plans to implement the ADRC processes at the centres.

Ms Anyanechi said these centres would mediate and resolve Nigerian upstream oil and gas sector disputes.

Ms Anyanechi also highlighted that issues related to the Petroleum Industry Act (PIA) and host communities required the Commission’s intervention.

She noted that the ADRC process had begun to yield positive results, emphasising that the centres would focus on oil-producing communities to reduce costs and address disputes peacefully. 

(NAN)