The Push for Alternative Dispute Resolution in Nigeria’s Oil and Gas Sector
In a bid to streamline conflict resolution within Nigeria’s oil and gas industry, stakeholders have been encouraged to adopt Alternative Dispute Resolution (ADR), particularly mediation, as a more efficient and cost-effective method of addressing disputes. This call was made during the Roundtable Consultative and Sensitisation Forum organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) 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,” aimed to deepen understanding of the NUPRC’s Alternative Dispute Resolution Centre (ADRC). The forum brought together key players from the sector, including operators, host communities, legal practitioners, and industry experts.
Institutionalising Fairness and Dialogue
Speaking at the event, NUPRC Chief Executive, Gbenga Komolafe, who was represented by the Commission’s Secretary and Legal Adviser, Mrs Olayemi Adeboyejo, highlighted the importance of the ADRC in institutionalising fairness, dialogue, and inclusivity in dispute resolution. He noted that the ADRC was created as a specialised, neutral, and sector-specific platform for resolving disputes in the upstream oil and gas industry.
“By offering mediation, the Centre ensures timely, impartial, and cost-effective dispute resolution consistent with international best practices,” Komolafe said. He 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.
Komolafe also outlined key milestones achieved by the Commission since the establishment of the ADRC, including the inauguration of its Board of Neutrals in Lagos and Yenagoa in 2024, and the hosting of a capacity-building programme earlier in 2025 to align procedures with global standards.
A Commercially Viable Alternative
Adeboyejo, in her welcome address, urged oil and gas stakeholders to embrace mediation as a commercially viable alternative to prolonged litigation. She highlighted that, in Nigeria, when people say, “Let the court decide,” it often means, “See you in ten years.”
“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,” she said. She added 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.
According to data from the Centre for Effective Dispute Resolution, 80 to 90 per cent of disputes referred to mediation are successfully resolved, often within days or weeks, not years. Adeboyejo 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.”
Technical Expertise and Industry Relevance
Adeboyejo also highlighted 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.
Other speakers at the forum echoed similar sentiments. Obi Uzu, Vice Chairman of the Petroleum Technology Association of Nigeria and Managing Director of Global Process and Pipeline Services, described the ADRC as a step in the right direction but called for a clear legal framework to support it. He noted that for mediation to gain traction, future contracts in the industry must expressly recognise ADR mechanisms.
The Future of Dispute Resolution
Adeyemi Akinsanya, CEO and Coordinating Mediator of the Dispute Solutions Hub, described mediation as “the future of dispute resolution in the oil and gas sector.” He pointed out that prolonged court cases destroy value and relationships, noting that most courts are congested, and cases can take twenty to thirty years to resolve.
Tunde Fagbohunlu, Senior Advocate of Nigeria and energy law expert, emphasized 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.
Oyoje Bello of Green Energy described confidentiality and neutrality as “the cornerstones of effective mediation.” She said that when you enter the mediation room, you’re entering a safe space. “The focus is on resolution, not regulation,” she said.
Fola Alade, a dispute resolution expert, described mediation as “justice delivered differently.” He noted that it saves time, protects value, and promotes collaboration. “Litigation delays projects and increases financial and reputational costs,” he said.
Embracing Mediation as the First Choice
Dr Adenike Esan, a member of the NUPRC Body of Neutrals, 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. She 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.”
