Nigeria

Lauren Ploch
Analyst in African Affairs

Nigeria, the most populous African nation with an estimated 149 million people, is one of the United States government's key strategic partners on the continent. It is Africa's largest producer of oil and is regularly the fifth largest oil exporter to the United States. By some estimates, Nigeria could rank among the world's top five exporters of oil within a few years, although social unrest and corruption in the country's Niger Delta region have posed significant challenges to oil production. 

As Africa's second largest economy, Nigeria's stability and prosperity affect not only those in the market for Nigerian oil, but the entire region. The country has faced intermittent political turmoil and economic crisis since gaining independence in 1960. Political life has been scarred by conflict along both ethnic and geographic lines and misrule has undermined the authority and legitimacy of the state apparatus. After 16 years of military rule, Nigeria made a transition to civilian governance in 1999, when Olusegun Obasanjo, a former general, was elected president. In 2007, Nigerians witnessed the country's first civilian transfer of power with the election of a new president, Umaru Yar'Adua. 

Nigeria continues to face serious social and economic challenges. Although Nigeria's oil and natural gas revenues are estimated at over $50 billion per year, its human development indicators are among the world's lowest, and a majority of the population suffer from extreme poverty. Fluctuations in world oil prices have posed additional problems for the Nigerian government, which relies on the energy sector for over 85% of revenues. Nigeria remains relatively stable, although intercommunal conflicts in parts of the country are common. Thousands have been killed and many more wounded in periodic religious clashes. The attempted terror attack on an American airliner by a Nigerian passenger on December 25, 2009, has heightened concerns regarding airport security in Africa and the possible radicalization of African Muslims. Under former President Obasanjo, Nigeria emerged as a major player in Africa. The government has helped to resolve political disputes in several African countries, and the country ranks 4th among troop contributors to United Nations peacekeeping missions around the world. 

Nigeria's most recent general elections, which the U.S. State Department called "deeply flawed," were held in April 2007. Despite controversy surrounding his election, President Yar'Adua's pledges of reform were welcomed by many Nigerians, but questions regarding his health and the pace of reform increased during his tenure. Yar'Adua was hospitalized in Saudi Arabia in November 2009 for a heart condition and did not return to Nigeria until February 2010. Last seen in public in November, prior to his hospitalization, the President's prolonged absence heightened fears of political instability. His death was announced on May 5. His Vice President, Goodluck Jonathan, who had served as acting president since February, was subsequently sworn in as head of state. He has pledged to uphold President Yar'Adua's reform agenda and to prioritize anticorruption efforts, peace and development in the Niger Delta, and electoral reform in preparation for the upcoming 2011 elections. The Obama Administration has expressed support for these initiatives, and in April established a U.S.-Nigeria Binational Commission, a strategic dialogue to address issues of mutual concern.


Date of Report: June 4, 2010
Number of Pages: 39
Order Number: RL33964
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