NUPRC Moves to Cut Costly Legal Delays in Oil Sector with ADR
By Naija Enquirer Staff
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says its Alternative Dispute Resolution Centre (ADRC) has become a central tool in reducing operational delays and cutting millions of dollars in legal expenses for oil and gas companies, as Nigeria races to meet urgent production and investment targets.
Speaking at a sensitisation forum in Lagos, the Commission Chief Executive, Engr. Gbenga Komolafe, represented by the Commission Secretary and Legal Adviser, Olayemi Adeboyejo, said prolonged court cases have long been a major but often overlooked drain on upstream investment, slowing project execution and weakening Nigeria’s competitiveness.
“Every delayed project represents lost revenue for investors and the country,” Komolafe said. “With ADRC, we are shortening dispute cycles, lowering operational costs, and ensuring that projects move from planning to execution without years of legal bottlenecks.”
ADRC Aims to Reduce Costs and Improve Efficiency
Komolafe explained that the Centre was designed to provide faster, cheaper, and expert-led dispute resolution mechanisms that boost productivity and reduce overheads for operators already contending with security issues, rising operational expenses, and tightening global capital.
“Our job as a regulator is to remove obstacles, not create them. The ADRC reinforces our commitment to a more efficient, more predictable upstream environment,” he noted.
Boosting Investor Confidence Through Faster Resolutions
The Commission emphasised that global investors increasingly assess jurisdictions based on the speed and predictability of dispute resolution. By strengthening regulatory efficiency, Nigeria aims to align more closely with international best practice.
Komolafe said improved dispute turnaround time could accelerate the development of marginal fields, unlock quicker approvals for joint venture (JV) projects, and stimulate new well optimisation programmes, particularly for declining assets.
“If operators can resolve issues in weeks rather than years, we will see faster drilling campaigns, quicker tie-ins, and reduced downtime across the value chain,” he added.
ADRC Positioned as First Option for Operators
The Commission urged producers and service companies to prioritise ADR when disputes arise, describing the Centre as an essential tool for reducing operating cost profiles and enabling Nigeria to meet its production and revenue targets under the Petroleum Industry Act (PIA).
With the ADRC gaining traction, the NUPRC says it remains committed to fostering a more business-friendly upstream sector capable of attracting investments, accelerating project timelines, and enhancing national revenue performance.
