Mediation Speeds Up Oil Sector Dispute Resolution

Daftar Isi

The Rise of Mediation in Nigeria’s Oil and Gas Sector

Nigeria’s oil and gas sector is witnessing a significant shift in how disputes are resolved. Stakeholders, including representatives from international oil companies, independent producers, host communities, and legal experts, are advocating for mediation as a more effective alternative to traditional litigation. This movement aims to foster faster, more collaborative, and sustainable dispute resolution mechanisms that align with global best practices.

A recent high-level roundtable hosted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Lagos highlighted this growing emphasis on mediation. 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,” brought together key players in the sector to discuss the benefits of the Alternative Dispute Resolution Centre (ADRC).

The NUPRC’s Chief Executive, Gbenga Komolafe, emphasized the importance of moving away from adversarial approaches and embracing a more cooperative model. He described the ADRC as a specialized, neutral, and sector-specific platform designed to resolve the types of disputes common in upstream operations. According to Komolafe, the ADRC offers timely, impartial, and cost-effective solutions that reflect international standards.

One of the ADRC’s key achievements has been the establishment of its Board of Neutrals in Lagos and Yenagoa, along with a capacity-building program in March 2025. The board includes retired judges, lawyers, petroleum engineers, and seasoned mediators who are selected not only for their technical expertise but also for their commitment to neutrality, confidentiality, and ethical rigor.

Komolafe outlined several objectives for the ADRC, including demystifying its structure and procedures, equipping stakeholders with practical tools for mediation, fostering collaboration with community structures and government agencies, and encouraging early recourse to mediation before disputes escalate.

He stressed that efficient dispute resolution is crucial for maintaining operational stability, investor confidence, and community relations. By promoting a culture of proactive engagement, mutual respect, and shared accountability, the commission aims to bridge existing knowledge gaps within the industry.

Mrs Olayemi Adeboyejo, the commission’s Secretary and Legal Adviser, echoed these sentiments, urging stakeholders to embrace mediation as a faster, cheaper, and more commercially sensible alternative to the country’s notoriously slow court processes. She pointed out that disputes can take five to ten years to resolve through litigation, resulting in significant financial losses and missed opportunities.

Adeboyejo highlighted the ADRC’s role in providing a structured, confidential, and efficient platform for resolving grievances. She noted that 80–90% of disputes referred to mediation are successfully resolved within days or weeks, offering a stark contrast to the prolonged litigation process.

Confidentiality and neutrality are central to the ADRC’s framework. Adeboyejo explained that the center ensures that all discussions remain within the mediation room, and settlements can be converted into consent judgments. This approach provides a safe space for parties to engage in open dialogue without fear of public exposure or reputational damage.

Legal experts such as Mr Tunde Fagbohunlu and Ms Oyoje Bello have also emphasized the unique advantages of mediator-led processes. Fagbohunlu described mediation as a facilitated negotiation where a neutral third party guides disputing sides toward mutually beneficial solutions. Bello highlighted the importance of confidentiality and neutrality in building trust and achieving meaningful resolutions.

Dr Adenike Esan, a certified mediator and member of NUPRC’s Body of Neutrals, praised the ADRC’s structure and rules, noting that they are specifically designed to address the complexities of Nigeria’s upstream petroleum operations. She emphasized that mediation allows parties to control the process, its pace, and settlement terms, making it an ideal tool for maintaining relationships and protecting corporate interests.

Overall, the shift towards mediation in Nigeria’s oil and gas sector reflects a broader trend toward efficiency, collaboration, and sustainability. By prioritizing dialogue over confrontation, the industry is taking a significant step toward creating a more stable and prosperous environment for all stakeholders.