Nigeria’s business environment is one of enormous promise but also complex realities. For companies operating in extractives, energy, and infrastructure, the biggest challenges often come not from market forces but from relationships with stakeholders—especially communities, regulators, and civil society. Resistance in these settings is common, but when approached with foresight, it can be transformed into meaningful partnerships that deliver stability and shared value.
Learning from the Past: Shell and Ogoniland
The Niger Delta crisis remains a defining case of what happens when stakeholder voices are ignored. In the 1990s, Shell’s operations in Ogoniland faced fierce resistance due to oil spills, environmental degradation, and exclusion from decision-making. The backlash drew global attention and forced Shell to suspend operations in the area.
The crisis left lasting scars, but it also produced lessons. Years later, Shell committed to funding the Hydrocarbon Pollution Remediation Project (HYPREP), following recommendations from the United Nations Environment Programme (UNEP). Progress has been uneven, yet the initiative represents a recognition that long-term stability in Nigeria requires not just extracting resources but addressing community grievances and building trust.
A Positive Model: Nigeria LNG and Bonny Island
Nigeria LNG (NLNG) offers a different story. From the outset, the company invested in its host community through structured dialogue and a dedicated development fund. Schools, hospitals, electrification, and other socio-economic projects on Bonny Island became visible signs of partnership rather than afterthoughts.
While not free from challenges, NLNG’s deliberate approach has allowed it to avoid many of the conflicts that plague other oil and gas operators in the region. The lesson is clear: building trust early often saves years of costly disruption later.
Turning Conflict into Dialogue: Dangote Refinery
The Dangote Refinery in Lekki is one of the most ambitious industrial projects in Africa. During its early stages, local communities raised concerns about displacement and environmental impact. Initial resistance gave way to dialogue, resettlement programmes, and skills training initiatives. By creating jobs and investing in local capacity, Dangote shifted perceptions and reduced tensions, turning a potential flashpoint into an example of engagement.
Lessons for Nigerian Businesses
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Learn from history: Neglect breeds mistrust that can last decades, as seen in Ogoniland.
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Invest in trust early: NLNG demonstrates that development and dialogue must begin from the first day of operations.
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Deliver tangible benefits: Infrastructure, jobs, and training are visible proof points that strengthen community relations.
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Be transparent: Open communication about risks and benefits builds credibility and reduces suspicion.
Nigeria’s history shows that resistance is not the end of the story. With the right approach, it can be the beginning of a partnership. Companies that choose engagement over avoidance gain not only operational stability but also legitimacy in the eyes of the people most affected by their work.
At CSR-in-Action, this is the work we have dedicated ourselves to for over fourteen years—helping businesses navigate complex relationships with integrity, ensuring that stakeholder voices are heard, and turning tension into opportunity.