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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has officially inaugurated the Body of Neutrals for its Upstream Alternative Dispute Resolution Centre, marking a pivotal moment in the sector’s approach to managing disputes. The Centre will collaborate with international ADR organisations to bring global best practices to Nigeria’s oil and gas industry.
In his inauguration speech, Engr. Gbenga Komolafe, the Commission’s Chief Executive, expressed his enthusiasm about the new body and its global partnerships. “It is with profound pleasure and a deep sense of honour that I stand before you today to inaugurate the Body of Neutrals,” he said. “This momentous occasion marks a significant milestone in our role as the Regulator of the Nigerian Upstream Petroleum Sector.”
Komolafe highlighted the Centre’s mission to provide an efficient alternative to traditional litigation. He remarked, “While traditional litigation remains necessary and important, it is often accompanied by inherent delays, high costs, and adversarial postures that can exacerbate conflicts.” He further elaborated, “In recognition of these challenges, 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.”
The Body of Neutrals, comprising experts from law, retired judges, and industry specialists, will play a crucial role in overseeing and mediating disputes. Komolafe praised the members, stating, “The Body of Neutrals comprises eminent professionals with expert knowledge and/or technical experience in the oil and gas industry. They embody the core values of impartiality, expertise, professionalism, and dedication.”
One of the Centre’s key goals is to enhance access to justice while alleviating the burden on Nigeria’s judicial system, Komolafe said as he explained, “One of the fundamental objectives of our Centre is to enhance access to justice in a timely and cost-effective manner.” He also stressed the importance of this approach in reducing the strain on traditional courts and expediting resolutions.
The ADR Centre also aims to improve relationships between oil companies and host communities. “Beyond resolving individual disputes, our Centre aspires to foster a broader culture of resolution and cooperation, particularly in relation to host communities,” said Komolafe. He noted the relevance of Sections 234 and 235 of the Petroleum Industry Act (PIA) 2021, which provide for host community development.
Komolafe then highlighted that the Centre’s collaboration with international ADR organisations will bring a wealth of global expertise to Nigeria, stating, “We are building networks with international ADR organisations to exchange knowledge, best practices, and innovative approaches.” This international engagement is expected to enhance the Centre’s effectiveness and establish it as a leader in global dispute resolution practices.
Furthermore, the Centre will focus on continuous professional development. “Our Body of Neutrals will undergo regular training to stay abreast of the latest developments in ADR methodologies and to refine their skills,” Komolafe assured. He also outlined plans for nurturing future ADR professionals through internships and mentorship programmes.
As the ADR Centre begins its journey, Komolafe expressed optimism for its impact. “I am confident that this Body of Neutrals will play a pivotal role in transforming the landscape of dispute resolution in the sector,” he concluded. “Together, we will build a future where disputes are resolved not through contention, but through cooperation and understanding.”
Ozioma Samuel-Ugwuezi
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