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Oil, gas operators urged to adopt ADR

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Stakeholders in Nigeria’s oil and gas sector have been urged to adopt Alternative Dispute Resolution, particularly mediation, as a faster, cheaper, and more business-friendly approach to resolving industry-related conflicts.

This call was made at the Roundtable Consultative and Sensitisation Forum organised by the Nigerian Upstream Petroleum Regulatory Commission on Wednesday in Lagos. The event, themed “Strengthening Stakeholders’ Knowledge of the ADRC’s Mandate and Promoting Efficient, Collaborative and Sustainable Dispute Resolution in Nigeria’s Upstream Petroleum Industry,” focused on deepening understanding of the Commission’s Alternative Dispute Resolution Centre.

Speaking at the event, NUPRC Chief Executive, Gbenga Komolafe, said the Commission established the ADRC to institutionalise fairness, dialogue, and inclusivity in addressing disputes within the oil and gas sector.

Komolafe, represented by the Commission’s Secretary and Legal Adviser, Mrs Olayemi Adeboyejo, said the initiative demonstrated a shared industry resolve to address disputes constructively, adding that it aimed to foster transparency, equity, and cooperation.

“This gathering is not just another industry event; it is a reaffirmation of our collective resolve to institutionalise dialogue, equity, and inclusivity in the resolution of industry-related disputes,” Komolafe said.

He noted that the ADRC was created as a specialised, neutral, and sector-specific platform for resolving disputes in Nigeria’s upstream oil and gas industry.

“By offering mediation, the Centre ensures timely, impartial, and cost-effective dispute resolution consistent with international best practices,” he stated.

Komolafe urged operators, host communities, and legal practitioners to embrace the ADRC as “a strategic ally in corporate governance and risk mitigation” rather than a regulatory mechanism.

“Our objective is to make ADR not the last resort but the first choice for dispute resolution in Nigeria’s upstream petroleum industry,” he added.

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According to him, the Commission has achieved key milestones since the Centre’s creation, including inaugurating its Board of Neutrals in Lagos and Yenagoa in 2024, and hosting a capacity-building programme earlier in 2025 to align procedures with global standards.

He said the Board comprised eminent professionals such as retired judges, lawyers, and technical experts versed in ADR processes and committed to neutrality and confidentiality.

Earlier in her welcome address, Adeboyejo urged oil and gas stakeholders to embrace mediation as a commercially viable alternative to prolonged litigation.

“In Nigeria, when people say, ‘Let the court decide,’ sometimes what they really mean is, ‘See you in ten years,” she quipped.

“By that time, oil prices may have changed, the parties may have changed, and even the lawyers handling the matter may have changed chambers twice.”

She noted that under the Petroleum Industry Act 2021, the ADRC was established as a core pillar of the new regulatory framework to promote fairness, confidentiality, and efficiency in dispute management.

“Data from the Centre for Effective Dispute Resolution shows that 80 to 90 per cent of disputes referred to mediation are successfully resolved, often within days or weeks, not years,” she said.

She stressed that the ADRC guarantees neutrality through an independent body of neutrals, joint selection and payment of mediators by both parties, and strict confidentiality.

“No journalist will get a scoop from your mediation room,” she assured. “What happens in mediation stays in mediation.”

Adeboyejo added that the Centre’s mediators possess technical knowledge of the oil and gas industry, giving them a unique advantage in resolving disputes quickly and efficiently.

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“Our neutrals can distinguish between a wellhead and a headache — and that makes all the difference,” she said.

Also speaking, Vice Chairman of the Petroleum Technology Association of Nigeria and Managing Director of Global Process and Pipeline Services, Mr Obi Uzu, said the ADRC was a step in the right direction but called for a clear legal framework to support it.

“This is a very important platform for resolving complex contractual issues. Some of our members have completed projects for two to three years without payment,” he said.

“We want to see this platform work, but we also want to be sure it will be trusted by both clients and service providers.”

He noted that for mediation to gain traction, future contracts in the industry must expressly recognise ADR mechanisms.

On his part, Chief Executive Officer and Coordinating Mediator of the Dispute Solutions Hub, Mr Adeyemi Akinsanya, described mediation as “the future of dispute resolution in the oil and gas sector,” noting that prolonged court cases destroy value and relationships.

“Most courts are congested, and cases can take twenty to thirty years to resolve,” he said. “Mediation offers a quick, efficient, and practical way of finding a win-win solution that satisfies both sides and preserves business relationships.”

Similarly, Senior Advocate of Nigeria and energy law expert, Mr Tunde Fagbohunlu, emphasised that mediation should be seen as a process of facilitation, not adjudication.

“Mediation is not about who is right or wrong; it’s about getting the parties to agree,” he said. “The regulator’s role is not punitive but facilitative.”

Fagbohunlu called for a standing inter-stakeholder mechanism to strengthen confidence in ADR and ensure continuous engagement between regulators, operators, and mediators.

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Legal practitioner Ms Oyoje Bello of Green Energy described confidentiality and neutrality as “the cornerstones of effective mediation.”

“When you enter that mediation room, you’re entering a safe space. What happens there stays there. The focus is on resolution, not regulation,” she said.

Also, dispute resolution expert, Mr Fola Alade, described mediation as “justice delivered differently,” saying it saves time, protects value, and promotes collaboration.

“Litigation delays projects and increases financial and reputational costs. Every day, a project is tied up in dispute, millions are lost,” he said.

Alade advised that disputes should first go through negotiation and mediation before resorting to arbitration or litigation.

“Mediation and litigation are not rivals; they can coexist. The key is using the right tool at the right time,” he said.

A member of the NUPRC Body of Neutrals, Dr Adenike Esan, also urged industry players to make mediation their first choice.

“Businesses are not set up to resolve disputes; they are set up to achieve objectives,” she said. “When disputes arise, we must resolve them efficiently and quickly.”

Esan noted that mediators at the ADRC possess the technical expertise to understand complex petroleum issues and bridge gaps that often delay arbitration or court processes.

“Mediation may not always end in a settlement,” she added, “but even when it doesn’t, it helps parties understand each other’s positions better and sometimes paves the way for future cooperation.”

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Nigerians Will Soon Be Able To Buy Dangote Refinery Shares Soon – Dangote Announces

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Dangote disclosed this while speaking with journalists during a tour of the refinery by the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari.

President of the Dangote Group, Aliko Dangote, announced on Saturday that Nigerians will, within the next four to five months, have the opportunity to buy shares in the Dangote Refinery.

Dangote disclosed this while speaking with journalists during a tour of the refinery by the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari.

‎“Individually, Nigerians too will have an opportunity… in the next maximum four or five months, they will actually be able to buy their shares,” Dangote said.

‎He added that investors would have flexibility in receiving returns on their investments.

‎“People will have a choice either to get their dividends in naira or to get their dividends in dollars because we earn dollars,” he stated.

‎Highlighting what he described as the national ownership dimension of the project, Dangote revealed that NNPC currently holds a minority stake in the refinery on behalf of Nigerians.

‎“They are holding 7.25 per cent of the shares that we have here… and they are holding that on behalf of Nigerians,” he said.

‎Beyond public participation, Dangote said his company would deepen cooperation with NNPC to strengthen operations at the refinery and expand Nigeria’s energy and industrial capacity.

‎“I think the sky is the limit and we [NNPC and Dangote Refinery] will cooperate and also make sure that we work together to make sure that we make Nigerians proud,” he said.

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‎He noted that discussions were ongoing on additional areas of collaboration, including possible joint ventures across the oil and gas value chain.

‎“Most likely, depending on our own discussions with them, we will partner with them, maybe in some of the upstream. They, too, will partner with us here because here is not a refinery. It’s an industrial hub,” Dangote explained.

‎The billionaire businessman also spoke about new industrial projects within the refinery complex, including the production of linear alkylbenzene, a key raw material used in detergents.

‎According to him, the facility is being positioned as a major supplier across the continent.

‎“That raw material for detergent will be sufficient for the entire African continent… and we will deliver all this in the next 30 months,” he added.

‎Dangote emphasised that both organisations share a common objective of advancing Nigeria’s energy security and boosting industrial development.

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Lagos enforces 5% tax on gaming winnings

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The Lagos State Government has begun enforcing a five per cent withholding tax on gaming winnings from licensed gaming platforms operating within the state.

The Chief Executive Officer of the Lagos State Lotteries and Gaming Authority, Are Bashir, made this known in a public notice issued on Friday.

He stated that the policy, which takes immediate effect, applies to players’ net winnings and is to be deducted at the point of payout.

Bashir directed all licensed gaming operators in the state to comply immediately with the new tax framework in line with existing Nigerian tax laws and regulatory directives governing the gaming industry.

According to the notice, the five per cent deduction will be automatically withheld before winnings are paid to players and remitted to the Lagos State Internal Revenue Service as the statutory tax authority.

Bashir said the initiative is part of the state’s wider efforts to improve tax compliance, transparency and accountability in the fast-growing gaming sector.

“The measure forms part of Lagos’ broader drive to strengthen tax compliance, transparency, and accountability in the rapidly expanding gaming sector,” the notice read.

He said under the new arrangement, players are required to provide their National Identification Number (NIN) in line with Know Your Customer (KYC) regulations.

Bashir clarified that all deductions and remittances will be handled strictly by licensed gaming operators in accordance with regulatory requirements, adding that players will receive their winnings net of the statutory deduction, with proper records maintained to ensure transparency.

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He further noted that the withholding tax deducted will serve as a tax credit to the player.

“All licensed gaming operators in Lagos State have now been formally directed to commence the deductions with immediate effect,” the notice said.

Bashir reiterated that the policy is aimed at ensuring effective regulation of the gaming industry while aligning both operators and players with existing tax obligations in the state.

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Customs hand over seized N40.7m petrol to NMDPRA

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The Comptroller-General of Customs, Adewale Adeniyi, on Friday handed over 1,650 jerrycans of Premium Motor Spirit, worth N40.7 million, to the Nigerian Midstream and Downstream Petroleum Regulatory Authority for further investigation.

Addressing journalists at the handover ceremony held at the Customs Training College in Ikeja, Adeniyi said the seized fuel was intercepted at various locations, including Badagry, Owode, Seme, and other axes within Lagos State.

Represented by the National Coordinator of Operation Whirlwind, Deputy Comptroller-General Abubakar Aliyu, Adeniyi said the contraband was intercepted over the past nine weeks.

“In the space of nine weeks, our operatives intensified surveillance and enforcement across critical border communities. A total of 1,650 jerrycans of 25 litres each were seized along notorious smuggling routes, including Adodo, Seme, Owode Apa, Ajilete, Idjaun, Ilaro, Badagry, Idiroko, and Imeko. The total duty-paid value of the PMS is N40.7 million,” Adeniyi said.

He added that three tankers used to transport the fuel were carrying 60,000, 45,000, and 49,000 litres respectively, totalling 154,000 litres of PMS.

According to Adeniyi, the interception was the result of intelligence-driven operations and the vigilance of Operation Whirlwind in safeguarding Nigeria’s economy and energy security.

He explained that the transportation and movement of petroleum products are governed by regulatory frameworks and standard operating procedures designed to prevent diversion, smuggling, hoarding, and economic sabotage.

“These items contravened the established Standard Operating Procedures of Operation Whirlwind,” Adeniyi said, emphasising that such violations undermine government policy, distort market stability, and deprive the nation of critical revenue.

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He warned that border corridors such as Owode, Seme, and Badagry remain sensitive economic arteries. “These routes have historically been exploited for illegal cross-border petroleum movement. Under our watch, there will be no safe haven for economic sabotage,” he said.

Adeniyi said the handover to NMDPRA reflects inter-agency collaboration. “While Customs enforces border control and anti-smuggling mandates, NMDPRA regulates distribution and ensures compliance with downstream laws. This collaboration ensures due process, transparency, and regulatory integrity,” he said.

Representing NMDPRA, Mrs. Grace Dauda said the agency ensures that petroleum products produced in Nigeria are consumed domestically. “It is unfortunate that some businessmen attempt to smuggle the product out of the country. The public must work together to stop economic sabotage,” she said.

Operation Whirlwind is a special tactical enforcement operation launched by the Nigeria Customs Service in 2024 to combat cross-border smuggling of petroleum products, particularly PMS, and other contraband that threaten Nigeria’s economic security. It was established in response to a surge in illegal fuel diversion across the country.

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