Nigeria's Oil Industry: The Crisis of Relationships

The article by Michael Kabi examines the persistent challenges in Nigeria's oil industry, particularly focusing on the relationships that govern it. Set in a Port Harcourt hotel, the discussion reveals that the industry's problems are not merely geological but are rooted in the quality of connections among various stakeholders, including the state, communities, and companies.

The term "above-ground risk" is used to describe the social and regulatory challenges that executives face, indicating a failure to address the underlying relationship issues. The Petroleum Industry Act, touted as a solution, has not resolved the ongoing problems, as evidenced by the continued environmental degradation and community discontent.

Historical initiatives like OMPADEC and NDDC have failed to restore trust, suggesting that without genuine relationship governance, oil production will continue to suffer.