Niger Delta disputes, NUPRC inaugurates BON in region

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has established the Body of Neutrals (BON) at its Upstream Alternative Dispute Resolution Centre to manage conflicts in the Niger Delta region. During the inauguration in Yenagoa, NUPRC Chief Executive Mr. Gbenga Komolafe emphasized that achieving peace in oil communities is essential for boosting oil production in the area.

The BON, which is tasked with resolving disputes related to the Petroleum Industry Act, consists of experienced legal professionals, retired judges, and oil industry experts, and is chaired by retired Justice Nayai Aganba. Komolafe urged the panel members to maintain fairness and integrity in their adjudication process.

Komolafe highlighted that the NUPRC faced numerous disputes impeding the development of oil communities, which could potentially lead to conflicts affecting oil production. He noted that the establishment of the Body of Neutrals marks a significant step in improving dispute resolution within the upstream oil and gas sector.

He explained that while traditional litigation is often slow and expensive, the Alternative Dispute Resolution Centre (ADRC) in Yenagoa offers a more efficient and cost-effective solution through arbitration and mediation. Komolafe also pointed out that despite the inauguration of 130 Host Community Development Trusts and a funding commitment of N200 billion, disputes were still hindering development.

Governor Douye Diri of Bayelsa praised the establishment of the ADRC in Yenagoa, viewing it as a sign of returning peace to the Niger Delta. He reiterated his call for oil companies to relocate their headquarters to the Niger Delta and criticized the Petroleum Industry Act (PIA) for excluding states and local governments, suggesting a review to include these entities. Diri also advocated for an increase in the host community development fund from three percent to at least ten percent to support lasting peace and oil exploration.