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.
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.
“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.
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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