According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the oil and gas host community development trust fund has successfully raised approximately N60 billion and $100 million.
This was revealed by Gbenga Komolafe, the Commission Chief Executive of the NUPRC, at the Body of Neutrals’ inauguration at the Upstream Alternative Dispute Resolution (ADR) Center in Lagos.
Komolafe emphasized the commission’s continuous efforts to successfully execute the comprehensive requirements of the Petroleum Industry Act.
According to him, the money was meant to maximize the country’s hydrocarbon resources while also enhancing host communities and creating an atmosphere that is favorable for business operators to operate in.
Komolafe added that disagreements within host communities frequently obstruct the efficient use of these monies, but that difficulties still exist despite these attempts.
He clarified that disputes and legal battles among neighbors could cause delays in the distribution of monies, aggravating problems in a court system that is already under pressure.
He emphasized the value of alternative dispute resolution procedures, which provide quicker, more equitable, and less confrontational resolutions to conflicts in the business world.
Komolafe asserts that these strategies lessen the load on the legal system in addition to helping the parties concerned.
“Our approach is both inclusive and adaptable, tailored to the unique needs of the oil and gas sector.
“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.
Komolafe emphasized that this center is a change from typical litigation, which is frequently characterized by expensive fees, protracted proceedings, and heightened tension.
“Our Alternative Dispute Resolution Centre aims to streamline dispute resolution through mechanisms like mediation and conciliation. Our goal is to offer a quality, cost-effective, and timely resolution process,” he said, adding that the funds for host community development were managed directly by the communities through their elected trustees, without government interference.
“The expectation is that these funds will promote shared prosperity and create a peaceful operating environment, which will, in turn, support optimal production and benefit the federation’s revenue,” Komolafe added.
Mrs. Olayemi Anyanechi, the Commission Secretary and Legal Advisor, hailed the inauguration as a historic occasion.
According to her, the Body of Neutrals would guarantee objectivity and justice while offering a forum for fair and unbiased conflict settlement.
“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 added.
