The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has inaugurated the Body of Neutrals (BON) to address rising community disputes in the Niger Delta region. This new panel, launched at the Alternative Dispute Resolution Centre (ADRC) in Yenagoa, Bayelsa State, aims to offer a faster, more affordable way to resolve conflicts that frequently disrupt oil production and the effective implementation of the Petroleum Industry Act.

Chief Executive of the NUPRC, Gbenga Komolafe, emphasized that maintaining peace in oil communities is crucial for boosting Nigeria’s oil output and addressing the nation’s economic challenges. “Our goal is to provide quality, efficient, and cost-effective dispute resolution services,” Komolafe said during the inauguration, highlighting the urgent need for alternatives to the slow and costly traditional legal system.

The inauguration comes amid increasing tensions between oil firms and host communities, where disputes over land use, environmental degradation, and revenue sharing have often led to protests and violence. These conflicts have severely impacted the development of local areas despite the establishment of over 130 Host Community Development Trusts, funded with over ₦200 billion Naira . The irony, Komolafe noted, is that despite substantial investments aimed at improving living conditions, persistent disputes continue to hinder progress.

He described the launch as a transformative step for the Nigerian oil and gas sector, which has been plagued by frequent conflicts “This momentous occasion marks a significant milestone in our role as the regulator of the Nigerian upstream petroleum sector.

Komolafe, stressed the importance of alternative dispute resolution methods, which offer faster, fairer, and less adversarial solutions to industry disputes. According to him, these methods not only benefit the parties involved but also alleviate the burden on the judicial system.

“Our approach is both inclusive and adaptable, tailored to the unique needs of the oil and gas sector” he said .

“Whether through mediation or expert determination, our centre is equipped to handle disputes of varying complexities and scales, ensuring respectful and supportive assistance to all involved,” Komolafe said.

The establishment of the Body of Neutrals marks a significant advancement in providing effective and cost-efficient dispute resolution services. The inaugurated Body of Neutrals (BON) is chaired by Retired Justice Nayai Aganba and comprises 47 experienced legal practitioners, retired judges, and oil industry experts, tasked with mediating disputes that arise from the implementation of the Petroleum Industry Act (PIA), a legislation meant to regulate the oil sector and foster better relationships between companies and their host communities.

The NUPRC Boss urged the panel members to handle cases impartially and maintain high standards of fairness in their judgments. Describing the establishment of the Body of Neutrals as the commencement of a new chapter in dispute resolution, he also   said the initiative aims to offer solutions through mediation and arbitration, allowing for direct communication between conflicting parties and fostering quicker, less adversarial resolutions.

Also present at the inauguration was the Executive Governor of Bayelsa State, Douye Diri, who commended the initiative as a vital move towards peace in the region, noting  that Bayelsa State, which witnessed the first commercial oil discovery at Otuabagi in Oloi Biri District, has been at the forefront of oil production in Nigeria but has also faced its share of communal strife.

Governor Diri renewed calls for oil companies to relocate their headquarters to the Niger Delta, arguing that having their operations closer to the affected communities would foster better relations and transparency.He also criticized the exclusion of state and local governments from key roles in the Petroleum Industry Act, warning that this oversight could fuel further unrest. He called for a review of the PIA to grant states and local governments a more active role in managing community relations and demanded an increase in the host community development fund from the current 3% to at least 10%.  According to the Bayelsa State Governor, such a move would help to establish lasting peace and support sustainable oil exploration.

 Secretary and Legal Adviser, to the NUPRC Mrs Olayemi Anyanechi,  praised the inauguration as a significant milestone. She said that the Body of Neutrals would ensure fairness and impartiality, providing a platform for equitable dispute resolution. She added, “This event signifies our commitment to justice and equity.

“The Body of Neutrals will set new standards in dispute resolution, reflecting our dedication to ethical excellence and our long-term vision for the centre.” She expressed confidence that the centre would address conflicts among host communities and positively impact the industry.

The NUPRC’s launch of the Body of Neutrals signals a commitment to addressing the grievances of oil-producing communities, many of which feel marginalized despite the vast wealth generated from their land. By providing an accessible and fair platform for dispute resolution, the commission hopes to reduce the frequency of violent conflicts that have long disrupted both the lives of local residents and the nation’s oil production.