The paper examined the challenges affecting the smooth implementation of the alternative dispute resolution (ADR) provision mainstreamed in the PHost Communities Development Regulations, (NUPRHCDR) 2022. The work adopted both doctrinal and qualitative research methods for the research. It relied heavily on Chapter Three (3) of the PIA, 2021, the NUPHCDR, 2022, and the Oil and Gas Industry Local Content Development Act, 2010 etc. The work found that the ADR provision and the local contents requirements (LCRs) envisioned in the PIA, 2021 and its regulations, 2022 demonstrate the laudable intention of the Federal Government of Nigeria towards disputes resolution between host communities and the settlors within their areas of operation However, the research reveals that due to administrative red-tapism, inherent operational challenges and inherent socio-legal constraints that have confronted the governance structure that is, the Board of Trustees of almost all the host community development trusts (HCDTs) in the implementation of the ADR provision in particular, the intended benefits under Chapter three (3) of the PIA and its regulations designed for the host communities cannot be seamlessly achieved. To this end, the paper, among other things, recommends that the relevant provision of the PIA 2021 and its regulations, 2022 should be amended with a view to reviewing upward, for example, the 5% administrative cost to 10% while the reserve fund account should be reviewed downward from 20% to 15% respectively. This will enable the small, medium and big trusts to effectively and efficiently handle disputes settlement within the host communities.
Macaulay et al. (Sat,) studied this question.
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