In order to improve dispute resolution in Nigeria’s oil and gas industry, NUPRC established international relationships with the launch of the Body of Neutrals.

An important turning point in the industry’s dispute resolution strategy has been reached with the formal opening of the Body of Neutrals for the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) Upstream Alternative Dispute Resolution Centre. In order to introduce international best practices to Nigeria’s oil and gas industry, the Centre will work with international ADR organisations.

The Chief Executive of the Commission, Engr. Gbenga Komolafe, spoke enthusiastically about the new organisation and its international alliances during his inauguration speech. “I stand before you today to inaugurate the Body of Neutrals with profound pleasure and a deep sense of honour,” he stated. “This historic event represents a critical turning point in our function as the Nigerian Upstream Petroleum Sector Regulator.”

Komolafe emphasised the Center’s goal of offering a successful substitute for conventional litigation. “Traditional litigation is still important and necessary, but it is often accompanied by high costs, adversarial postures that can exacerbate conflicts, and inherent delays,” he said. “Our Alternative Dispute Resolution Centre was conceived with a vision to provide a seamless approach to dispute resolution—one that emphasises mechanisms such as mediation and conciliation and other ADR methods,” he continued, “in recognition of these challenges.”

The Body of Neutrals, which is made up of retired judges, legal experts, and business professionals, will be vital in supervising and arbitrating cases. “The Body of Neutrals comprises eminent professionals with expert knowledge and/or technical experience in the oil and gas industry,” said Komolafe, praising the members. They are the epitome of the fundamental virtues of objectivity, knowledge, diligence, and professionalism.

As he clarified, “One of the fundamental objectives of our Centre is to enhance access to justice in a timely and cost-effective manner,” Komolafe stated that improving access to justice while lessening the load on Nigeria’s court system is one of the center’s main goals. He also emphasised how crucial this strategy is to lessen the burden on conventional courts and speed up settlements.

Enhancing the rapport between host communities and oil firms is another goal of the ADR Centre. Komolafe stated, “Our Centre aspires to foster a broader culture of resolution and cooperation, particularly in relation to host communities, beyond resolving individual disputes.” He emphasised the importance of the Petroleum Industry Act (PIA) 2021’s Sections 234 and 235, which address host community development.

“We are building networks with international ADR organisations to exchange knowledge, best practices, and innovative approaches,” Komolafe continued. This international engagement is expected to enhance the Center’s effectiveness and establish it as a leader in global dispute resolution practices. The Center’s collaboration with international ADR organisations will bring a wealth of global expertise to Nigeria.

The Centre will also prioritise ongoing professional development. “Regular training will be provided to our Body of Neutrals to enhance their skills and stay up to date with the latest advancements in ADR methodologies,” Komolafe promised. He also outlined plans for nurturing future ADR professionals through internships and mentorship programmes.

As the ADR Centre begins its journey, Komolafe expressed excitement for its influence. “I am confident that this Body of Neutrals will play a pivotal role in transforming the landscape of dispute resolution in the sector,” he added. “Together, we will build a future where disputes are resolved not through contention, but through cooperation and understanding.”