The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced plans to establish Alternative Dispute Resolution Centres (ADRC) in various regions of the country to address conflicts within the Nigerian oil and gas industry.
This initiative was disclosed by the Commission Chief Executive of NUPRC, Engr. Gbenga Komolafe, during a Stakeholders Engagement and Consultation Session on the Draft Rules of Procedures of the ADRC, held in Lagos. Represented by the Executive Commissioner, Development & Production, Mr. Enorense Amadasu, via telecast; Engr. Komolafe emphasized that the event was a significant step toward enhancing the efficiency, fairness, and effectiveness of dispute resolution within the upstream sector.
The CCE expressed his pleasure in welcoming stakeholders to the engagement session, highlighting the collective goal of ensuring that the ADRC operates with the highest standards of transparency, integrity, and responsiveness in line with industry needs. He noted that the ADRC established in 2021, is a testament to the Commission’s commitment to providing a robust framework for resolving disputes promptly. He emphasized the importance of ADRC mechanisms in alleviating the burden on courts, reducing litigation costs, and fostering a more collaborative approach to dispute resolution.
Recognizing the crucial role of the oil and gas industry in the nation’s economy, Engr. Komolafe stressed the need for a harmonious business environment to ensure the sector’s continued growth. He affirmed that the ADRC is dedicated to delivering an innovative, efficient, and cost-effective approach to dispute resolution, which is vital for industry stability and sustainable growth. The CCE also underscored the importance of collaboration in this process, inviting stakeholders to actively participate in refining the Draft Rules of Procedure for the ADRC.
He assured the participants that the draft rules, developed through extensive research and benchmarked against international best practices, would benefit from their insights to ensure practical effectiveness.
The Commision Secretary and Legal Adviser (CSLA), Mrs. Olayemi Anyanechi, explained that the purpose of the forum was to gather stakeholder opinions on the effective management and administration of ADRC in the oil and gas sector. She pointed out that recent bid rounds and the Petroleum Industry Act (PIA) had led to numerous disputes, underscoring the urgency of adopting ADRC mechanisms in this critical sector.
Mrs. Anyanechi also clarified that the motivation behind the ADRC initiative was not merely cost-related but aimed at creating a more efficient and conducive environment for growth and development in the Nigerian oil and gas industry.
