The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been involved in over 70 legal cases this year alone, according to Olayemi Anyanechi, the commission’s Secretary and Legal Adviser.
The lawsuits involve various groups, including host communities, and have led to substantial government expenditure on legal defenses.
During a stakeholders’ consultation on the Alternative Dispute Resolution Centre (ADRC) rules of procedure, Anyanechi highlighted the high level of litigation within Nigeria’s oil and gas sector.
She noted that many disputes, particularly those arising from the 2020 marginal field bid round and issues related to the Petroleum Industry Act (PIA), have been successfully resolved out of court, reducing the court’s case load.
The ADRC is seen as a critical tool for managing disputes efficiently and fairly. Anyanechi stressed its importance in ensuring a more harmonious regulatory environment for the industry.
NUPRC Chief Executive Officer Gbenga Komolafe is focused on making the ADRC a model for Nigeria and Africa, aiming to improve the effectiveness of alternative dispute resolution in the upstream sector.