Beyond Above-Ground Risk: The Relationships That Decide Nigeria’s Oil

The barrels beneath the Niger Delta were never the issue; the underlying problem has always been the relationships above ground, which carry no price tag. Michael Kabi reports from a Port Harcourt hotel where men in heavy suits, though exhausted, maintain a professional demeanor. Outside, young men on motorbikes observe security convoys, a scene that remains unchanged despite various attempts to address the issue.

The conversation within the hotel revolves around barrels and the ever-present challenges that have persisted for years. The Petroleum Industry Act was presented as a solution, but it has not yielded the desired results, as the crude continues to leak into the creeks, and foreign money continues to flow towards Guyana. The industry's focus on "above-ground risk" represents a failure to address the root causes.

The men on motorbikes are not mere variables but the manifestation of broken relationships, which cannot be resolved through conventional means. The problem lies in the industry's perception of the Delta and its failure to recognize the significance of the relationships between the state, community, company, and regulator. While various initiatives have been implemented, none have successfully resolved the issue.

Instead, the money keeps moving, following political interests rather than benefiting the local communities. The key to resolving Nigeria's petroleum challenges lies in the relationships above ground. Building trust, fostering collaboration, and ensuring that all parties have a stake in the success of the oil industry are essential steps towards lasting order and prosperity.