NUPRC urges stakeholders to Adopt ADR for conflict resolution

 

 

UGO AMADI

 

As part of effort to ensure swift resolution of disputes and mitigate conflicts arising from the oil and Gas industry., the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has advocated the establishment of more Alternative Dispute Resolution Centres (ADRC) in parts of the country.

 

The Commission’s Chief Executive, Engr Gbenga Komolafe, made this known in Lagos at a Stakeholders Engagement and Consultation Session on the Draft Rules of Procedures of the ADRC.

 

Engr. Komolafe, who was represented by the Commissioner, Development and production in the commission, Mr Enorense Amadasu, who spoke virtually , said the forum marked a significant step towards efforts at enhancing efficiency fairness and effectiveness of ADR within the upstream industry.

 

“It is with great pleasure and immense pride that I welcome you to this Stakeholders’ Engagement on the Draft Rules of Procedures for the Alternative Dispute Resolution Center (ADRC).

 

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

 

The NUPRC boss, who said the ADRC was established in 2021, noted that the move was a demonstration of the Commission’s commitment to providing a robust framework for resolving disputes in a timely manner.

 

“We recognise that Alternative Dispute Resolution (ADR) mechanisms can play a crucial role in alleviating the burden on our courts, reducing litigation costs, and fostering a more amicable and collaborative approach to dispute resolution.”

 

“As critical stakeholders, you undoubtedly recognise the profound impact of the oil and gas industry on the stability of our economy and the nation at large. Thus, it is imperative that a harmonious business environment is fostered to ensure continued growth of the sector. The timely and equitable resolution of disputes within this critical sector is not just essential but paramount. The ADRC is committed to delivering an innovative, efficient, and cost-effective approach to dispute resolution, designed to reinforce industry stability and catalyze sustainable growth.”

 

“Your presence here today underscores the importance of collaboration and cooperation in this process of guaranteeing a peaceful industry. Your insights, experiences, and perspectives are invaluable to us. The development of the ADRC Draft Rules of Procedure is not merely an administrative task but a collective endeavor that requires the active participation of all relevant stakeholders”.

 

He said the draft rules were the result of extensive research, and had been benchmarked against international best practices, while taking into careful consideration the industry within which we operate.

 

“We are, however, not ignorant of the value your insights will provide to ensure the practical effectiveness of these rules.

 

we therefore, invite you to engage openly and constructively during this consultation. Your feedbacks on the procedural fairness, accessibility, and comprehensiveness of the draft rules will be crucial in refining them to better serve the needs of all stakeholders and the industry at large.

 

“Let me assure you that the Commission is fully committed to ensuring that the ADRC becomes a beacon of excellence in dispute resolution. We aim to establish procedures that are not only legally sound but also user-friendly and capable of delivering timely and just outcomes for all”, he said.

 

Earlier, Mrs Olayemi Anyanechi, Commission Secretary and Legal Adviser, noted that the Commission had been working diligently to make ADRC centres a source of pride for Nigeria and Africa

 

According to her the purpose of the forum was to sought the opinions of stakeholders on the effective management and administration of Alternative Disputes Resolution in the oil and gas sector.

 

She cited examples of the recent Bid rounds which attracted litigations and the PIB which thrown up a lot of disputes from host communities as some of the reasons for the necessity and urgency for the adoption of the Alternative Dispute Resolution mechanism in the sector that is very significant to the nation’s economy.

 

As to why they were avoiding the courts, Mrs. Anyanechi said, “What we are doing here today is not driven by cost but by efficiency that will ultimately create a conducive atmosphere that will allow for growth and development in the oil and gas industry”.

 

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.

 

Anyanechi said that these centres would mediate and resolve disputes in the Nigerian upstream oil and gas sector.

 

“The Nigerian oil and gas industry is vital but can be contentious, with many cases arising. When the Commission was established, one of its priorities was to address dispute resolution effectively.

 

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

 

“In 2024 alone, the Commission handled around 70 court cases, which incurred substantial costs.

 

“This highlighted the need for NUPRC to regulate and oversee the industry to resolve disputes efficiently outside the courtroom.

 

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.