Nigeria

 

Bureau of African Affairs                                                     
June 2007                                                                     
                                                                       
  Background Note: Nigeria                                                    
                                                                       
  Flag of Nigeria is three equal vertical bands of green (hoist side), white, 
  and green.                                                                  
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Federal Republic of Nigeria                                                 
                                                                       
  Geography                                                                   
  Area: 923.8 thousand sq. km. (356,700 sq. mi.) about the size of California,
  Nevada, and Arizona.                                                        
  Cities: Capital--Abuja (pop. est. 452,000). Other cities--Kano (9.3 million),
  Lagos (9.01 million), Ibadan (5 million), Enugu (500,000).                  
  Terrain: Ranges from southern coastal swamps to tropical forests, open      
  woodlands, grasslands, and semi-desert in the far north. The highest regions
  are the Jos Plateau 1,200-2,400 meters above sea level and the mountains    
  along the border with Cameroon.                                             
  Climate: Annual rainfall ranges from 381 cm. along the coast to 64 cm. or   
  less in the far north.                                                      
                                                                       
  People                                                                      
  Nationality: Noun and adjective--Nigerian(s).                               
  Population (2006 est.): 140 million.                                        
  Total fertility rate (avg. number of children per woman): 5.7.              
  Ethnic groups (250): Hausa-Fulani, Igbo, Yoruba, and Ijaw are the largest.  
  Religions: Muslim, Christian, indigenous African.                           
  Languages: English (official), Hausa, Igbo, Yoruba, Fulani, Ijaw, others.   
  Education: Attendance (secondary)--male 32%, female 27%. Literacy--39%-51%. 
  Health: Life expectancy (2004 est.)--43.7 years.                            
                                                                       
  Government                                                                  
  Type: Federal republic.                                                     
  Independence: October 1, 1960.                                              
  Constitution: The 1999 constitution (based largely on the 1979 constitution)
  was promulgated by decree on May 5, 1999 and came into force on May 29, 1999.
  Subdivisions: 36 states plus Federal Capital Territory (Abuja); states      
  divided into a total of 774 local government areas.                         
  Total government expenditure (2006 budget): $14 billion.                    
  Defense: 4.5% of 2006 budget.                                               
                                                                       
  Economy                                                                     
  GDP (2005 est.): $99.0 billion.                                             
  Estimated real growth rate (2005 est.): 6.9%.                               
  Per capita GDP (2005 est.): $694.                                           
  Inflation (2006): 8%.                                                       
  Natural resources: Petroleum, natural gas, tin, columbite, iron ore, coal,  
  limestone, lead, zinc.                                                      
  Agriculture: Products--cocoa, palm oil, yams, cassava, sorghum, millet, corn,
  rice, livestock, groundnuts, cotton.                                        
  Industry: Types--textiles, cement, food products, footwear, metal products, 
  lumber, beer, detergents, car assembly.                                     
  Trade (2005): Exports--$59 billion: petroleum (95%); cocoa; rubber. Partners
  --United States (52.5%); Spain (8.2%); Brazil (6.1%). Imports--$25 billion: 
  machinery; chemicals; transport equipment; manufactured goods; food; live   
  animals. Partners--China (10%); United States (7.3%); United Kingdom (6.7%).
                                                                       
  PEOPLE                                                                      
  The most populous country in Africa, Nigeria accounts for over half of West 
  Africa's population. Although less than 25% of Nigerians are urban dwellers,
  at least 24 cities have populations of more than 100,000. The variety of    
  customs, languages, and traditions among Nigeria's 250 ethnic groups gives  
  the country a rich diversity. The dominant ethnic group in the northern     
  two-thirds of the country is the Hausa-Fulani, most of whom are Muslim. Other
  major ethnic groups of the north are the Nupe, Tiv, and Kanuri. The Yoruba  
  people are predominant in the southwest.                                    
                                                                       
  About half of the Yorubas are Christian and half Muslim. The predominantly  
  Catholic Igbo are the largest ethnic group in the southeast, with the Efik, 
  Ibibio, and Ijaw (the country's fourth-largest ethnic group) comprising a   
  substantial segment of the population in that area. Persons of different    
  language backgrounds most commonly communicate in English, although knowledge
  of two or more Nigerian languages is widespread. Hausa, Yoruba, Igbo, Fulani,
  and Ijaw are the most widely used Nigerian languages.                       
                                                                       
  HISTORY                                                                     
  In the northern cities of Kano and Katsina, recorded history dates back to  
  about 1000 AD. In the centuries that followed, these Hausa kingdoms and the 
  Bornu empire near Lake Chad prospered as important terminals of north-south 
  trade between North African Berbers and forest people who exchanged slaves, 
  ivory, and kola nuts for salt, glass beads, coral, cloth, weapons, brass    
  rods, and cowrie shells used as currency.                                   
                                                                       
  In the southwest, the Yoruba kingdom of Oyo was founded about 1400, and at  
  its height from the 17th to 19th centuries attained a high level of political
  organization and extended as far as modern Togo. In the south central part of
  present-day Nigeria, as early as the 15th and 16th centuries, the kingdom of
  Benin had developed an efficient army; an elaborate ceremonial court; and   
  artisans whose works in ivory, wood, bronze, and brass are prized throughout
  the world today. In the 17th through 19th centuries, European traders       
  established coastal ports for the increasing traffic in slaves destined for 
  the Americas. Commodity trade, especially in palm oil and timber, replaced  
  slave trade in the 19th century, particularly under anti-slavery actions by 
  the British Navy. In the early 19th century the Fulani leader, Usman dan    
  Fodio, promulgated Islam and that brought most areas in the north under the 
  loose control of an empire centered in Sokoto.                              
                                                                       
  A British Sphere of Influence                                               
  Following the Napoleonic wars, the British expanded trade with the Nigerian 
  interior. In 1885, British claims to a sphere of influence in that area     
  received international recognition and, in the following year, the Royal    
  Niger Company was chartered. In 1900, the company's territory came under the
  control of the British Government, which moved to consolidate its hold over 
  the area of modern Nigeria. In 1914, the area was formally united as the    
  "Colony and Protectorate of Nigeria."                                       
                                                                       
  Administratively, Nigeria remained divided into the northern and southern   
  provinces and Lagos colony. Western education and the development of a modern
  economy proceeded more rapidly in the south than in the north, with         
  consequences felt in Nigeria's political life ever since. Following World War
  II, in response to the growth of Nigerian nationalism and demands for       
  independence, successive constitutions legislated by the British Government 
  moved Nigeria toward self-government on a representative, increasingly      
  federal, basis.                                                             
                                                                       
  Independence                                                                
  Nigeria was granted full independence in October 1960, as a federation of   
  three regions (northern, western, and eastern) under a constitution that    
  provided for a parliamentary form of government. Under the constitution, each
  of the three regions retained a substantial measure of self-government. The 
  federal government was given exclusive powers in defense and security,      
  foreign relations, and commercial and fiscal policies. In October 1963,     
  Nigeria altered its relationship with the United Kingdom by proclaiming     
  itself a federal republic and promulgating a new constitution. A fourth     
  region (the midwest) was established that year. From the outset, Nigeria's  
  ethnic, regional, and religious tensions were magnified by the significant  
  disparities in economic and educational development between the south and the
  north.                                                                      
                                                                       
  On January 15, 1966, a small group of army officers, mostly southeastern    
  Igbos, overthrew the government and assassinated the federal prime minister 
  and the premiers of the northern and western regions. The federal military  
  government that assumed power was unable to quiet ethnic tensions or produce
  a constitution acceptable to all sections of the country. Its efforts to    
  abolish the federal structure greatly raised tensions and led to another coup
  in July. The coup-related massacre of thousands of Igbo in the north prompted
  hundreds of thousands of them to return to the southeast, where increasingly
  strong Igbo secessionist sentiment emerged.                                 
                                                                       
  In a move that gave greater autonomy to minority ethnic groups, the military
  divided the four regions into 12 states. The Igbo rejected attempts at      
  constitutional revisions and insisted on full autonomy for the east. Finally,
  in May 1967, Lt. Col. Emeka Ojukwu, the military governor of the eastern    
  region, who emerged as the leader of increasing Igbo secessionist sentiment,
  declared the independence of the eastern region as the "Republic of Biafra."
  The ensuing civil war was bitter and bloody, ending in the defeat of Biafra 
  in 1970.                                                                    
                                                                       
  Following the civil war, reconciliation was rapid and effective, and the    
  country turned to the task of economic development. Foreign exchange earnings
  and government revenues increased spectacularly with the oil price rises of 
  1973-74. On July 29, 1975, Gen. Murtala Muhammed and a group of fellow      
  officers staged a bloodless coup, accusing Gen. Yakubu Gowon's military     
  government of delaying the promised return to civilian rule and becoming    
  corrupt and ineffective. General Muhammed replaced thousands of civil       
  servants and announced a timetable for the resumption of civilian rule by   
  October 1, 1979. Muhammed also announced the government's intention to create
  new states and to construct a new federal capital in the center of the      
  country.                                                                    
                                                                       
  General Muhammed was assassinated on February 13, 1976, in an abortive coup.
  His chief of staff, Lt. Gen. Olusegun Obasanjo, became head of state.       
  Obasanjo adhered meticulously to the schedule for return to civilian rule,  
  moving to modernize and streamline the armed forces and seeking to use oil  
  revenues to diversify and develop the country's economy. Seven new states   
  were created in 1976, bringing the total to 19. The process of creating     
  additional states continued until, in 1996, there were 36.                  
                                                                       
  The Second Republic                                                         
  A constituent assembly was elected in 1977 to draft a new constitution, which
  was published on September 21, 1978, when the ban on political activity, in 
  effect since the advent of military rule, was lifted. Political parties were
  formed, and candidates were nominated for president and vice president, the 
  two houses of the National Assembly, governorships, and state houses of     
  assembly. In 1979, five political parties competed in a series of elections 
  in which a northerner, Alhaji Shehu Shagari of the National Party of Nigeria
  (NPN), was elected president. All five parties won representation in the    
  National Assembly.                                                          
                                                                       
  In August 1983, Shagari and the NPN were returned to power in a landslide   
  victory, with a majority of seats in the National Assembly and control of 12
  state governments. But the elections were marred by violence, and allegations
  of widespread vote rigging and electoral malfeasance led to legal battles   
  over the results.                                                           
                                                                       
  On December 31, 1983, the military overthrew the Second Republic. Maj. Gen. 
  Muhammadu Buhari emerged as the leader of the Supreme Military Council (SMC),
  the country's new ruling body. He charged the civilian government with      
  economic mismanagement, widespread corruption, election fraud, and a general
  lack of concern for the problems of Nigerians. He also pledged to restore   
  prosperity to Nigeria and to return the government to civilian rule but was 
  stymied in his attempt to deal with Nigeria's severe economic problems. The 
  Buhari government was peacefully overthrown by the SMC's third-ranking      
  member, Army Chief of Staff Maj. Gen. Ibrahim Babangida, in August 1985.    
                                                                       
  Babangida moved to restore freedom of the press and to release political    
  detainees being held without charge. As part of a 15-month economic         
  emergency, he announced stringent pay cuts for the military, police, and    
  civil servants and enacted similar cuts for the private sector. Imports of  
  rice, maize, and wheat were banned. Babangida led a national debate on      
  proposed economic reform and recovery measures, which convinced him of      
  intense opposition to an economic recovery package dependent on an          
  International Monetary Fund (IMF) loan.                                     
                                                                       
  The Abortive Third Republic                                                 
  President Babangida promised to return the country to civilian rule by 1990;
  this date was later extended until January 1993. In early 1989, a constituent
  assembly completed work on a constitution for the Third Republic. In the    
  spring of 1989, political activity was again permitted. In October 1989 the 
  government established two "grassroots" parties: the National Republican    
  Convention (NRC), which was to be "a little to the right," and the Social   
  Democratic (SDP), "a little to the left." Other parties were not allowed to 
  register by the Babangida government.                                       
                                                                       
  In April 1990, mid-level officers attempted to overthrow the Babangida      
  government. The coup failed, and 69 accused coup plotters were later executed
  after secret trials before military tribunals. The transition resumed after 
  the failed coup. In December 1990 the first stage of partisan elections was 
  held at the local government level. While turnout was low, there was no     
  violence, and both parties demonstrated strength in all regions of the      
  country, with the SDP winning control of a majority of local government     
  councils.                                                                   
                                                                       
  In December 1991, gubernatorial and state legislative elections were held   
  throughout the country. Babangida decreed in December 1991 that previously  
  banned politicians would be allowed to contest in primaries scheduled for   
  August 1992. These were canceled due to fraud, and subsequent primaries     
  scheduled for September also were canceled. All announced candidates were   
  disqualified from again standing for president once a new election format was
  selected. The presidential election was finally held on June 12, 1993, with 
  the inauguration of the new president scheduled to take place August 27,    
  1993, the eighth anniversary of President Babangida's coming to power.      
                                                                       
  In historic June 12, 1993 presidential elections that most observers deemed 
  to be Nigeria's fairest, early returns indicated that wealthy Yoruba        
  businessman M.K.O. Abiola had won a decisive victory. However, on June 23,  
  Babangida, using several pending lawsuits as a pretense, annulled the       
  election, throwing Nigeria into turmoil. More than 100 persons were killed in
  riots before Babangida agreed to hand power to an "interim government" on   
  August 27. Babangida then attempted to renege on his decision. Without      
  popular and military support, he was forced to hand over to Ernest Shonekan,
  a prominent nonpartisan businessman. Shonekan was to rule until new         
  elections, slated for February 1994. Although he had led Babangida's        
  Transitional Council since early 1993, Shonekan was unable to reverse       
  Nigeria's ever-growing economic problems or to defuse lingering political   
  tension.                                                                    
                                                                       
  With the country sliding into chaos, Defense Minister Sani Abacha quickly   
  assumed power and forced Shonekan's "resignation" on November 17, 1993.     
  Abacha dissolved all democratic political institutions and replaced elected 
  governors with military officers. Abacha promised to return the government to
  civilian rule but refused to announce a timetable until his October 1, 1995 
  Independence Day address. Following the annulment of the June 12 election,  
  the United States and other nations imposed various sanctions on Nigeria,   
  including restrictions on travel by government officials and their families 
  and suspension of arms sales and military assistance. Additional sanctions  
  were imposed as a result of Nigeria's failure to gain full certification for
  its counter-narcotics efforts.                                              
                                                                       
  Although Abacha's takeover was initially welcomed by many Nigerians,        
  disenchantment grew rapidly. A number of opposition figures united to form a
  new organization, the National Democratic Coalition (NADECO), which         
  campaigned for an immediate return to civilian rule. Most Nigerians boycotted
  the elections held from May 23-28, 1994, for delegates to the               
  government-sponsored Constitutional Conference. On June 11, 1994, using the 
  groundwork laid by NADECO, Abiola declared himself president and went into  
  hiding. He reemerged and was promptly arrested on June 23. With Abiola in   
  prison and tempers rising, Abacha convened the Constitutional Conference June
  27, but it almost immediately went into recess and did not reconvene until  
  July 11, 1994.                                                              
                                                                       
  On July 4, a petroleum workers union called a strike demanding that Abacha  
  release Abiola and hand over power to him. Other unions then joined the     
  strike, which brought economic life in around Lagos area and in much of the 
  southwest to a standstill. After calling off a threatened general strike in 
  July, the Nigeria Labor Congress (NLC) reconsidered a general strike in     
  August, after the government imposed "conditions" on Abiola's release. On   
  August 17, 1994, the government dismissed the leadership of the NLC. Although
  striking unions returned to work, the government arrested opponents, closed 
  media houses, and moved strongly to curb dissent.                           
                                                                       
  The government alleged in early 1995 that some 40 military officers and     
  civilians were engaged in a coup plot, including former head of state       
  Obasanjo and his deputy, retired Gen. Shehu Musa Yar'Adua. After a secret   
  tribunal, most of the accused were convicted, and several death sentences   
  were handed down. The tribunal also charged, convicted, and sentenced       
  prominent human rights activists, journalists, and others--including        
  relatives of the coup suspects--for their alleged "anti-regime" activities. 
  In October, the government announced that the Provisional Ruling Council    
  (PRC--see below: Abubakar's Transition to Civilian Rule) and Abacha had     
  approved final sentences for those convicted of participation in the coup   
  plot.                                                                       
                                                                       
  In an October 1, 1995 address to the nation, Gen. Sani Abacha announced the 
  timetable for a 3-year transition to civilian rule. Only five of the        
  political parties which applied for registration were approved by the regime.
  In local elections held in December 1997, turnout was under 10%. By the April
  1998 state assembly and gubernatorial elections, all five of the approved   
  parties had nominated Abacha as their presidential candidate in controversial
  party conventions. Public reaction to this development in the transition    
  program was apathy and a near-complete boycott of the elections. On December
  21, 1997, the government announced the arrest of the country's second       
  highest-ranking military officer, Chief of General Staff Lt. Gen. Oladipo   
  Diya, 10 other officers, and eight civilians on charges of coup plotting.   
                                                                       
  Abacha, widely expected to succeed himself as a civilian president on October
  1, 1998, remained head of state until his death on June 8 of that year. He  
  was replaced by General Abdulsalami Abubakar. The PRC, under Abubakar,      
  commuted the sentences of those accused in the alleged 1997 coup in July    
  1998. In March 1999, Diya and 54 others accused or convicted of participation
  in coups in 1990, 1995, and 1997 were released. Following the death of former
  head of state Abacha in June, Nigeria released almost all known civilian    
  political detainees, including the Ogoni 19.                                
                                                                       
  During the Abacha regime, the government continued to enforce its arbitrary 
  authority through the federal security system--the military, the state      
  security service, and the courts. Under Abacha, all branches of the security
  forces committed serious human rights abuses. After Abubakar's assumption of
  power and consolidation of support within the PRC, human rights abuses      
  decreased.                                                                  
                                                                       
  Abubakar's Transition to Civilian Rule                                      
  During both the Abacha and Abubakar eras, Nigeria's main decision-making    
  organ was the exclusively military Provisional Ruling Council (PRC) which   
  governed by decree. The PRC oversaw the 32-member federal executive council 
  composed of civilians and military officers. Pending the promulgation of the
  constitution written by the constitutional conference in 1995, the government
  observed some provisions of the 1979 and 1989 constitutions. Neither Abacha 
  nor Abubakar lifted the decree suspending the 1979 constitution, and the 1989
  constitution was not implemented. The judiciary's authority and independence
  was significantly impaired during the Abacha era by the military regime's   
  arrogation of judicial power and prohibition of court review of its action. 
  The court system continued to be hampered by corruption and lack of resources
  after Abacha's death. In an attempt to alleviate such problems, Abubakar's  
  government implemented a civil service pay raise and other reforms.         
                                                                       
  In August 1998, the Abubakar government appointed the Independent National  
  Electoral Commission (INEC) to conduct elections for local government       
  councils, state legislatures and governors, the National Assembly, and      
  president. INEC held a series of four successive elections between December 
  1998 and February 1999. Former military head of state Olusegun Obasanjo,    
  freed from prison by Abubakar, ran as a civilian candidate and won the      
  presidential election. Irregularities marred the vote, and the defeated     
  candidate, Chief Olu Falae, challenged the electoral results and Obasanjo's 
  victory in court.                                                           
                                                                       
  The PRC promulgated a new constitution, based largely on the suspended 1979 
  constitution, before the May 29, 1999 inauguration of the new civilian      
  president. The constitution included provisions for a bicameral legislature,
  the National Assembly, consisting of a 360-member House of Representatives  
  and a 109-member Senate. The executive branch and the office of president   
  retained strong federal powers. The legislature and judiciary, having       
  suffered years of neglect, are finally rebuilding as institutions and       
  beginning to exercise their constitutional roles in the balance of power.   
                                                                       
  The Obasanjo Administration                                                 
  The emergence of a democratic Nigeria in May 1999 ended 16 years of         
  consecutive military rule. Olusegun Obasanjo became the steward of a country
  suffering economic stagnation and the deterioration of most of its democratic
  institutions. Obasanjo, a former general, was admired for his stand against 
  the Abacha dictatorship, his record of returning the federal government to  
  civilian rule in 1979, and his claim to represent all Nigerians regardless of
  religion.                                                                   
                                                                       
  The new President took over a country that faced many problems, including a 
  dysfunctional bureaucracy, collapsed infrastructure, and a military that    
  wanted a reward for returning quietly to the barracks. The President moved  
  quickly and retired hundreds of military officers who held political        
  positions, established a blue-ribbon panel to investigate human rights      
  violations, ordered the release of scores of persons held without charge, and
  rescinded a number of questionable licenses and contracts let by the previous
  military regimes. The government also moved to recover millions of dollars in
  funds secreted in overseas accounts.                                        
                                                                       
  Most civil society leaders and most Nigerians saw a marked improvement in   
  human rights and democratic practice under Obasanjo. The press enjoyed      
  greater freedom than under previous governments. As Nigeria works out       
  representational democracy, there have been conflicts between the executive 
  and legislative branches over major appropriations and other proposed       
  legislation. A sign of federalism has been the growing visibility of state  
  governors and the inherent friction between Abuja and the various state     
  capitols over resource allocation.                                          
                                                                       
  In the eight years since the end of military rule, Nigeria has witnessed    
  recurrent incidents of ethno-religious, community, and resource-related     
  conflicts. Many of these arose from distorted use of oil revenue wealth, as 
  well as from flaws in the 1999 constitution. In May 1999, violence erupted in
  Kaduna State over the succession of an Emir, resulting in more than 100     
  deaths. In November 1999, the army destroyed the town of Odi in Bayelsa State
  and killed scores of civilians in retaliation for the murder of 12 policemen
  by a local gang. In Kaduna in February-May 2000 over 1,000 people died in   
  rioting over the introduction of criminal Shar'ia in the state. Hundreds of 
  ethnic Hausa were killed in reprisal attacks in southeastern Nigeria. In    
  September 2001, over 2,000 people were killed in inter-religious rioting in 
  Jos. In October 2001, hundreds were killed and thousands displaced in       
  communal violence that spread across the Middle-Belt states of Benue, Taraba,
  and Nasarawa. On October 1, 2001, President Obasanjo announced the formation
  of a National Security Commission to address the issue of communal violence.
  In 2003, he was re-elected in contentious and highly flawed national        
  elections and state gubernatorial elections, which were litigated over two  
  years. Since 2006, violence, destruction of oil infrastructure, and         
  kidnappings of primarily expatriates in the oil-rich Niger River Delta has  
  intensified as militants demanded a greater share of federal revenue for    
  states in the region, as well as benefits from community development. For   
  many reasons, Nigeria's security services have been unable to respond to the
  security threat, which is both political and criminal.                      
                                                                       
  In May 2006, the National Assembly soundly defeated an attempt to amend the 
  constitution by supporters of a third presidential term for President       
  Obasanjo. This measure was packaged in a bundle of what were otherwise      
  non-controversial amendments. Nigeria's citizens addressed this issue in a  
  constitutional, democratic, and relatively peaceful process.                
                                                                       
  Civilian Transition                                                         
  Nigeria held state legislative and gubernatorial elections on April 14 as   
  well as presidential and national legislative elections on April 21, 2007, in
  which more than 35 political parties participated. Nigeria missed an        
  opportunity to strengthen an element of its democracy through a sound       
  electoral process. Analysis of the process by most international observers  
  did not conform to what Nigeria's National Electoral Commission (INEC)      
  reported. U.S. and international observers reported overall a seriously     
  flawed process with credible reports of malfeasance and vote rigging in some
  constituencies. The scope of violence that occurred also was regrettable.   
  There were considerable degrees of difference in the conduct of elections   
  among states, but serious differences were also observed within states during
  the two polling dates. The main opposition parties, All Nigeria People's    
  Party (ANPP) and the Action Congress (AC), as well as numerous smaller      
  political parties and the ruling People's Democratic Party (PDP) have filed 
  petitions to challenge the results of gubernatorial elections in 34 of      
  Nigeria's 36 states. Challenges to the presidential election have been filed
  by the ANPP, AC, and others in the Federal Court of Appeals, but the        
  opposition is not unified, and mass protests have not materialized. INEC's  
  principal problems included politicization and lack of independence, lack of
  transparency in its operations and decision-making, and persistent failure to
  make adequate logistical arrangements for both voter registration and       
  polling. With INEC's certification of the ruling party's presidential ticket
  as the winner with over 70% of the vote, Nigeria experienced its first      
  transition of power between civilian administrations when President Obasanjo
  stepped down on May 29, 2007. Newly-elected President Musu Umaru Yar'adua, a
  moderate and a respected governor from the northern state of Katsina, has   
  pledged publicly to make electoral reform, peace and security in the Niger  
  Delta, and continued electoral reform his top priorities.                   
                                                                       
  Principal Government Officials                                              
  President--Musu Umaru Yar'adua                                              
  Vice President--Goodluck Jonathan                                           
                                                                       
  Nigeria maintains an embassy in the United States at 3519 International     
  Place, NW, Washington, DC 20008, (phone. 202-986-8400, fax-202-362-6552) and
  a consulate general in New York at 575 Lexington Ave., New York, NY 10022,  
  (phone. 212-715-7200).                                                      
                                                                       
  ECONOMY                                                                     
                                                                       
  Trade                                                                       
  Nigeria is the largest U.S. trading partner in sub-Saharan Africa, based    
  mainly on the high level of petroleum imports from Nigeria. Total two-way   
  trade was valued at $30.8 billion in 2006, a 19% increase over 2005. Leading
  U.S exports to Nigeria were machinery, wheat, and motor vehicles. Leading   
  U.S. imports from Nigeria were oil and rubber products. Nigerian exports to 
  the United State under the African Growth and Opportunity Act (AGOA),       
  including its Generalized System of Preferences (GSP) provisions, were valued
  at $25.8 billion during 2006, a 15% increase over 2005, due to an increase in
  oil exports. Non-oil AGOA trade (leather products, species, cassava, yams,  
  beans, and wood products) totaled $1.4 million in 2006, almost double the   
  amount in 2005. The United States was the largest foreign investor in       
  Nigeria.                                                                    
                                                                       
  In June 2006, the United States met with Nigeria under the existing Trade and
  Investment Framework Agreement (TIFA) to cooperate on investment issues and 
  to develop a strategy for Nigeria to diversify its export base, especially in
  manufactured goods. Under the TIFA, the United States and Nigeria pledged to
  work together on critical issues such as World Trade Organization (WTO) Doha
  Development, intellectual property rights, and trade capacity building.     
                                                                       
  The U.S. goods trade deficit with Nigeria was $25.7 billion in 2006, an     
  increase of $3 billion from $22.6 billion in 2005. U.S. goods exports to    
  Nigeria in 2006 were $2.2 billion, up 38% from the previous year. U.S.      
  imports from Nigeria were $27.9 billion in 2006, up from 15% from 2005.     
  Nigeria is currently the 50th-largest export market for U.S. goods.         
                                                                       
  The stock of U.S. foreign direct investment (FDI) in Nigeria in 2005 was $874
  million, down from $2.0 billion in 2004. U.S. FDI in Nigeria is concentrated
  largely in the mining and wholesale trade sectors.                          
                                                                       
  Dominated by Oil                                                            
  The oil boom of the 1970s led Nigeria to neglect its strong agricultural and
  light manufacturing bases in favor of an unhealthy dependence on crude oil. 
  In 2002 oil and gas exports accounted for more than 98% of export earnings  
  and about 83% of federal government revenue. New oil wealth, the concurrent 
  decline of other economic sectors, and a lurch toward a statist economic    
  model fueled massive migration to the cities and led to increasingly        
  widespread poverty, especially in rural areas. A collapse of basic          
  infrastructure and social services since the early 1980s accompanied this   
  trend. By 2002 Nigeria's per capita income had plunged to about one-quarter 
  of its mid-1970s high, below the level at independence. Along with the      
  endemic malaise of Nigeria's non-oil sectors, the economy continues to      
  witness massive growth of "informal sector" economic activities, estimated by
  some to be as high as 75% of the total economy.                             
                                                                       
  Nigeria's proven oil reserves are estimated to be 36 billion barrels; natural
  gas reserves are well over 100 trillion cubic feet. Nigeria is a member of  
  the Organization of Petroleum Exporting Countries (OPEC), and in 2006 its   
  crude oil production averaged around two million barrels per day. Poor      
  corporate relations with indigenous communities, vandalism of oil           
  infrastructure, severe ecological damage, and personal security problems    
  throughout the Niger Delta oil-producing region continue to plague Nigeria's
  oil sector. Efforts are underway to reverse these troubles. In the absence of
  coherent government programs, the major multinational oil companies have    
  launched their own community development programs. The Niger Delta          
  Development Commission (NDDC) was created to help catalyze economic and     
  social development in the region, but it is widely perceived to be          
  ineffective and opaque. The United States remains Nigeria's largest customer
  for crude oil, accounting for 40% of the country's total oil exports. Nigeria
  provides about 11% of overall U.S. oil imports and ranks as the fifth-largest
  source for U.S. imported oil.                                               
                                                                       
  The United States is Nigeria's largest trading partner after the United     
  Kingdom. Although the trade balance overwhelmingly favors Nigeria, thanks to
  oil exports, a large portion of U.S. exports to Nigeria is believed to enter
  the country outside of the Nigerian Government's official statistics, due to
  importers seeking to avoid Nigeria's excessive tariffs. To counter smuggling
  and under-invoicing by importers, in May 2001 the Nigerian Government       
  instituted a 100% inspection regime for all imports, and enforcement has been
  sustained. On the whole, Nigerian high tariffs and non-tariff barriers are  
  gradually being reduced, but much progress remains to be made. The government
  also has been encouraging the expansion of foreign investment, although the 
  country's investment climate remains daunting to all but the most determined.
  The stock of U.S. investment is nearly $7 billion, mostly in the energy     
  sector. Exxon-Mobil and Chevron are the two largest U.S. corporate players in
  offshore oil and gas production. Significant exports of liquefied natural gas
  started in late 1999 and are slated to expand as Nigeria seeks to eliminate 
  gas flaring by 2008.                                                        
                                                                       
  Agriculture has suffered from years of mismanagement, inconsistent and poorly
  conceived government policies, and the lack of basic infrastructure. Still, 
  the sector accounts for over 41% of GDP and two-thirds of employment.       
  Agriculture provides a big chunk of non-oil growth, which in 2006 reached 9%.
  Nigeria is no longer a major exporter of cocoa, groundnuts (peanuts), rubber,
  or palm oil. Cocoa production, mostly from obsolete varieties and overage   
  trees, is stagnant at around 180,000 tons annually; 25 years ago it was     
  300,000 tons. An even more dramatic decline in groundnut and palm oil       
  production also has taken place. Once the biggest poultry producer in Africa,
  corporate poultry output has been slashed from 40 million birds annually to 
  about 18 million. Import constraints limit the availability of many         
  agricultural and food processing inputs for poultry and other sectors.      
  Fisheries are poorly managed. Most critical for the country's future,       
  Nigeria's land tenure system does not encourage long-term investment in     
  technology or modern production methods and does not inspire the availability
  of rural credit.                                                            
                                                                       
  Oil dependency, and the allure it generated of great wealth through         
  government contracts, spawned other economic distortions. The country's high
  propensity to import means roughly 80% of government expenditures is recycled
  into foreign exchange. Cheap consumer imports, resulting from a chronically 
  overvalued Naira, coupled with excessively high domestic production costs due
  in part to erratic electricity and fuel supply, have pushed down industrial 
  capacity utilization to less than 30%. Many more Nigerian factories would   
  have closed except for relatively low labor costs (10%-15%). Domestic       
  manufacturers, especially pharmaceuticals and textiles, have lost their     
  ability to compete in traditional regional markets; however, there are signs
  that some manufacturers have begun to address their competitiveness.        
                                                                       
  Arguably the government's biggest macroeconomic achievement has been the    
  sharp reduction in its external debt, which declined from 36% of GDP in 2004
  to less than 4% of GDP in 2007. In October 2005, the International Monetary 
  Fund (IMF) approved its first ever Policy Support Instrument for Nigeria. On
  December 17, the United States and seven other Paris Club nations signed debt
  reduction agreements with Nigeria for $18 billion in debt reduction, with the
  proviso that Nigeria pay back its remaining $12 billion in debt by March    
  2006. The United States was one of the smaller creditors, and received about
  $356 million from Nigeria in return for over $600 million of debt reduction.
  Merrill Lynch has won the right to take on $509 million of Nigeria's        
  promissory debt (accrued since 1984) to the "London Club" of private        
  creditors. This arrangement saves Nigeria about $34 million over a simple   
  prepayment of the notes. Nigeria owes some bilateral loans and multilateral 
  institutions over $101 million in oil warrant instrumental debts, which soon
  might be redeemed via a cash tender offer. Consequently, Nigeria faces      
  intense pressure to accept multibillion dollar loans for railroads, power   
  plants, roads, and other infrastructure.                                    
                                                                       
  In the light of highly expansionary public sector fiscal policies during    
  2001, the government has sought ways to head off higher inflation, leading to
  the implementation of stronger monetary policies by the Central Bank of     
  Nigeria (CBN) and underspending of budgeted amounts. As a result of the CBN's
  efforts, the official exchange rate for the Naira has stabilized at about 127
  Naira to the dollar. The combination of CBN's efforts to prop up the value of
  the Naira and excess liquidity resulting from government spending led the   
  currency to be discounted by around 20% on the parallel (nonofficial) market.
  A key achievement of the Policy Support Instrument has been closure of the  
  gap between the official and parallel market exchange rates. The Inter-Bank 
  Foreign Exchange Market (IFEM) is closely tied to the official rate. Under  
  IFEM, banks, oil companies, and the CBN can buy or sell their foreign       
  exchange at government influenced rates. Much of the informal economy,      
  however, can only access foreign exchange through the parallel market.      
  Companies can hold domiciliary accounts in private banks, and account holders
  have unfettered use of the funds.                                           
                                                                       
  Expanded government spending also has led to upward pressure on consumer    
  prices. Inflation, which had fallen to 0% in April 2000, reached 14% by the 
  end of 2003. Inflation was estimated at 8% in early 2007. High world oil    
  prices have resulted in the government now holding $45 billion in foreign   
  exchange reserves. State and local governmental bodies demand access to this
  "windfall" revenue, creating a tug-of-war between the federal               
  government--which seeks to control spending--and state governments desirous 
  of augmented budgets, preventing the government from making provision for   
  periods of lower oil prices.                                                
                                                                       
  One of Nigeria's greatest success stories has been the completion in early  
  2006 of a major overhaul of its banking system, although some have criticized
  the pace of consolidation and aggressive CBN supervision. Reforms have      
  reduced the number of banks from 89 to 25, increased a bank's minimal capital
  requirement to $190 million, and required banks to hold 40% of their deposits
  in liquid assets. Retail, corporate, and Internet banking are seen as       
  intensively competitive, and the home loan market is considered moderately  
  competitive. Less than 10% of lending is believed to be made to individuals.
  About 65% of the economically active population is serviced by the informal 
  financial sector, e.g., microfinance institutions, moneylenders, friends,   
  relatives, and credit unions. Since 1999, the Nigerian Stock Exchange has   
  enjoyed strong performance, although equity as a means to foster corporate  
  growth remains underutilized by Nigeria's private sector. Rural communities 
  remain largely unbanked, the real estate sector and small businesses receive
  a low level of lending, and the credit card market remains at an early stage
  of development.                                                             
                                                                       
  Nigeria's publicly owned transportation infrastructure is a major constraint
  to economic development. Principal ports are at Lagos (Apapa and Tin Can    
  Island), Port Harcourt, and Calabar. Docking fees for freighters are among  
  the highest in the world. Of the 80,500 kilometers (50,000 mi.) of roads,   
  more than 15,000 kilometers (10,000 mi.) are officially paved, but many     
  remain in poor shape. Extensive road repairs and new construction activities
  are gradually being implemented as state governments, in particular, spend  
  their portions of enhanced government revenue allocations. The government   
  implementation of 100% destination inspection of all goods entering Nigeria 
  has resulted in long delays in clearing goods for importers and created new 
  sources of corruption, since the ports lack adequate facilities to carry out
  the inspection. Four of Nigeria's airports--Lagos, Kano, Port Harcourt and  
  Abuja--currently receive international flights. There are several domestic  
  private Nigerian carriers, and air service among Nigeria's cities is        
  generally dependable. The maintenance culture of Nigeria's domestic airlines
  is not up to international standards.                                       
                                                                       
  Gradual Reform                                                              
  Nigeria made progress toward establishing a market-based economy in 2006. It
  privatized Nigeria Telecommunications and its mobile subsidiary as well as  
  the only government-owned petrochemical company. The government also sold its
  interest in eight oil service companies. Nigeria continued implementation of
  the Economic Community of West African States (ECOWAS) Common External      
  Tariff. Nigeria's implementation of non-tariff barriers has been arbitrary  
  and uneven and continues to violate WTO prohibitions against trade bans.    
  However, the government removed some textile items from its list of         
  prohibited imports in 2006. Enforcement of criminal penalties against       
  intellectual property rights (IPR) violations is weak, and firms that are   
  successfully countering IPR piracy have generally done so through civil court
  cases. The government has recently created an intellectual property         
  commission.                                                                 
                                                                       
  A co-member of the International Advisory Group of the Extractive Industries
  Transparency Initiative (EITI) initiated by the G8, Nigeria's federal       
  government is playing an important role in having volunteered to pilot the  
  new disclosure and validation methodologies. It has completed a comprehensive
  audit of oil sector payments and government revenues from 1999-2004. However,
  it is perceived that government contracting remains rife with corruption and
  kickbacks, and that many state and local officials continue to steal public 
  monies outright.                                                            
                                                                       
  Nigeria's economic team has enjoyed an excellent reputation in the          
  international community. The team produced an encouraging body of work,     
  notably budgets described as "prudent and responsible" by the IMF and a     
  detailed economic reform blueprint, the National Economic Empowerment and   
  Development Strategy (NEEDS). Other positive developments have included: (1)
  government efforts to deregulate fuel prices; (2) Nigeria's participation in
  the EITI and commitment to the G8 Anticorruption/Transparency Initiative; (3)
  creation of an effective Economic and Financial Crimes Commission (EFCC),   
  which has earned 150 convictions and recovered over $5 billion in mishandled
  funds; and (4) development of several governmental offices to better monitor
  official revenues and expenditures.                                         
                                                                       
  Nigeria is not on track to meet its Millennium Development Goals because of a
  lack of policy coordination between the federal, state, and local           
  governments, a lack of funding commitments at the state and local levels; and
  a lack of available staff to implement and monitor projects on health,      
  poverty, and education.                                                     
                                                                       
  Investment                                                                  
  Although Nigeria must grapple with its decaying infrastructure and a poor   
  regulatory environment, the country possesses many positive attributes for  
  carefully targeted investment and will expand as both a regional and        
  international market player. Profitable niche markets outside the energy    
  sector, such as specialized telecommunication providers, have developed under
  the government's reform program. There is a growing Nigerian consensus that 
  foreign investment is essential to realizing Nigeria's vast potential.      
  Companies interested in long-term investment and joint ventures, especially 
  those that use locally available raw materials, will find opportunities in  
  the large national market. However, to improve prospects for success,       
  potential investors must educate themselves extensively on local conditions 
  and business practices, establish a local presence, and choose their partners
  carefully. The Nigerian Government is keenly aware that sustaining democratic
  principles, enhancing security for life and property, and rebuilding and    
  maintaining infrastructure are necessary for the country to attract foreign 
  investment.                                                                 
                                                                       
  DEFENSE                                                                     
  Active duty personnel in the three Nigerian armed services total            
  approximately 76,000. The Nigerian Army, the largest of the services, has   
  about 60,000 personnel deployed in two mechanized infantry divisions, one   
  composite division (airborne and amphibious), the Lagos Garrison Command (a 
  division size unit), and the Abuja-based Brigade of Guards. It has          
  demonstrated its capability to mobilize, deploy, and sustain battalions in  
  support of peacekeeping operations in the former Yugoslavia, Angola, Rwanda,
  Sierra Leone, Liberia, Sudan/Darfur, and Somalia. The Nigerian Navy (7,000) 
  is equipped with frigates, fast attack, and coastal patrol boats. The       
  Nigerian Air Force (9,000) flies transport, trainer, helicopter, and fighter
  aircraft, but most are currently not operational. Nigeria also has pursued a
  policy of developing domestic military production capabilities. Before the  
  lifting of sanctions by many Western nations, Nigeria had turned to China,  
  Russia, North Korea, and India for the purchase of military equipment and   
  training.                                                                   
                                                                       
  FOREIGN RELATIONS                                                           
  Since independence, Nigerian foreign policy has been characterized by a focus
  on Africa and by attachment to several fundamental principles: African unity
  and independence; peaceful settlement of disputes; nonalignment and         
  nonintentional interference in the internal affairs of other nations; and   
  regional economic cooperation and development. In pursuing the goal of      
  regional economic cooperation and development, Nigeria helped create the    
  Economic Community of West African States (ECOWAS), which seeks to harmonize
  trade and investment practices for its 15 West African member countries and 
  ultimately to achieve a full customs union. Over the past decade, Nigeria has
  played a pivotal role in the support of peace in Africa. It provided the bulk
  of troops for the UN peacekeeping mission in Sierra Leone (UNAMSIL), the UN 
  Mission in Liberia (UNMIL), and the African Union Mission in Sudan (AMIS),  
  and is anticipated to do so also in Somalia.                                
                                                                       
  Nigeria has enjoyed generally good relations with its immediate neighbors. A
  longstanding border dispute with Cameroon over the potentially oil-rich     
  Bakassi Peninsula was addressed by International Court of Justice (ICJ) in  
  The Hague in 2002. The ICJ awarded most of the disputed Bakassi Peninsula and
  maritime rights to Cameroon, and the UN established a Mixed Commission on   
  implementing the ICJ ruling. On June 12, 2006 Nigerian President Obasanjo and
  Cameroonian President Biya signed an agreement in New York on implementing  
  the ICJ decision. Nigeria promptly withdrew its troops within 60 days.      
                                                                       
  Nigeria is a member of the following international organizations: UN and many
  of its special and related agencies; World Trade Organization (WTO);        
  International Monetary Fund (IMF); World Bank/IBRD; African Development Bank
  (AfDB); INTERPOL; Organization of Petroleum Exporting Countries (OPEC);     
  Economic Community of West African States (ECOWAS); African Union (AU);     
  Maritime Organization of West and Central Africa (MOWCA) and several other  
  West African bodies; Commonwealth; Nonaligned Movement (NAM); and           
  Organization of the Islamic Conference (OIC), among others.                 
                                                                       
  U.S.-NIGERIAN RELATIONS                                                     
  With the nullification of Nigeria's June 12, 1993, presidential election, and
  in light of human rights abuses and the failure to embark on a meaningful   
  democratic transition, the United States imposed numerous sanctions on      
  Nigeria. After a period of increasingly strained relations, the death of    
  General Abacha in June 1998 and his replacement by General Abubak