Nigeria: Current Issues and U.S. Policy
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Nigeria: Current Issues and U.S. Policy /name redacted/ Specialist in African Affairs /name redacted/ Research Associate March 11, 2016 Congressional Research Service 7-.... www.crs.gov RL33964 Nigeria: Current Issues and U.S. Policy Summary The U.S. government considers its relationship with Nigeria, Africa’s largest producer of oil and its largest economy, to be among the most important on the continent. The country is Africa’s most populous, with more than 180 million people, roughly evenly divided between Muslims and Christians. Nigeria, which transitioned from military to civilian rule in 1999, ranked until recently among the top suppliers of U.S. oil imports, and is a major recipient of U.S. foreign aid. It is an influential actor in African politics and a major troop contributor to U.N. peacekeeping missions. Nigeria is a country of significant promise, but it also faces serious social, economic, and security challenges, some of which pose potential threats to state and regional stability. The country has faced intermittent political turmoil and economic crises since gaining independence in 1960. Political life has been scarred by conflict along ethnic, geographic, and religious lines, and corruption and misrule have undermined the state’s authority and legitimacy. Despite extensive petroleum resources, Nigeria’s human development indicators are among the world’s lowest, and a majority of the population faces extreme poverty. Thousands have been killed in periodic ethno- religious clashes. In the south, years of social unrest, criminality, and corruption in the oil- producing Niger Delta have hindered oil production, delayed the Delta’s economic development, and contributed to piracy in the Gulf of Guinea. Perceived government neglect and economic marginalization have also fueled resentment in the predominately Muslim north. The attempted terrorist attack on an American airliner by a Nigerian in 2009 and the subsequent rise of a militant Islamist group, Boko Haram, have heightened concerns about extremist recruitment in Nigeria, which has one of the world’s largest Muslim populations. Boko Haram has focused on a wide range of targets, but civilians in Nigeria’s impoverished, predominately Muslim northeast have borne the brunt of the violence. The group has also staged attacks in neighboring countries, notably Cameroon, and poses a threat to international targets in the region, including Western citizens. While the group appears primarily focused on the Lake Chad basin region, its March 2015 pledge to the Islamic State (IS) and potential ties with other violent Islamist groups, notably Al Qaeda in the Islamic Maghreb (AQIM), are of concern. The State Department designated Boko Haram and a splinter faction, Ansaru, as Foreign Terrorist Organizations (FTOs) in November 2013. Domestic criticism of the Nigerian government’s response to the Boko Haram threat, and in particular to the group’s April 2014 kidnapping of almost 300 schoolgirls, contributed to the election in March 2015 of former military ruler Muhammadu Buhari to the presidency. The elections were Nigeria’s most competitive contest to date and were viewed as a critical test for its leaders, its security forces, and its people. They have been widely hailed as historic, with the ruling People's Democratic Party (PDP) and its president, Goodluck Jonathan, losing to Buhari’s All Progressives Congress (APC), marking Nigeria’s first democratic transfer of power. President Buhari’s administration has thus far been largely focused on curbing rampant corruption and stemming insecurity in Nigeria’s northeast—two key pillars of his presidential campaign. The Obama Administration has been supportive of reform initiatives in Nigeria, including anti- corruption efforts, economic and electoral reforms, energy sector privatization, and programs to promote peace and development in the Niger Delta. In 2010, the Administration established the U.S.-Nigeria Binational Commission, a strategic dialogue to address issues of mutual concern. Congress regularly monitors Nigerian political developments, and some Members have expressed concern with corruption, human rights abuses, and the threat of violent extremism in Nigeria. Congress oversees more than $600 million in U.S. foreign aid programs in Nigeria—one of the largest U.S. bilateral assistance packages in Africa. Congressional Research Service Nigeria: Current Issues and U.S. Policy Contents Overview ......................................................................................................................................... 1 Political Context .............................................................................................................................. 3 The 2015 Elections .................................................................................................................... 3 Development Challenges and Reform Initiatives ............................................................................ 5 Efforts to Combat Corruption ................................................................................................... 6 Petroleum and Power Sector Reforms ...................................................................................... 8 Financial Sector Reforms .......................................................................................................... 9 Social Issues and Security Concerns ............................................................................................. 10 Islamic Sharia Law ................................................................................................................. 10 Religious and Communal Tensions .......................................................................................... 11 Boko Haram and Militant Islam in Nigeria ............................................................................. 12 Conflict in the Niger Delta ...................................................................................................... 14 Abuses by Security Forces ...................................................................................................... 16 Ebola, Polio, and HIV/AIDS ................................................................................................... 17 Issues for Congress ........................................................................................................................ 18 Administration Policy on Nigeria ........................................................................................... 18 U.S.-Nigeria Trade and Maritime Security Issues ................................................................... 18 Nigeria’s Role in Regional Stability and Counterterrorism Efforts ........................................ 19 U.S. Assistance to Nigeria ....................................................................................................... 21 Congressional Engagement ..................................................................................................... 22 Figures Figure 1. Nigeria at a Glance ........................................................................................................... 2 Figure 2. Results of the 2015 Presidential Election......................................................................... 4 Tables Table 1. State Department and USAID Assistance to Nigeria ....................................................... 21 Contacts Author Contact Information .......................................................................................................... 23 Congressional Research Service Nigeria: Current Issues and U.S. Policy Overview Nigeria is considered a key power on the African continent, not only because of its size, but also because of its political and economic role in the region. One in five people in Sub-Saharan Africa calls Nigeria home. The country’s commercial center, Lagos, is among the world’s largest cities. Nigeria has overtaken South Africa as Sub-Saharan Africa’s largest economy, and it is one of the world’s major sources of high-quality crude oil. Nigerian troops have played an important role in peace and stability operations on the continent, and the country regularly ranks among the top 10 troop contributors to United Nations peacekeeping missions. Few countries in Africa have the capacity to make a more decisive impact on the region. Despite its oil wealth, however, Nigeria remains highly underdeveloped. Poor governance and corruption have limited infrastructure development and social service delivery, slowing economic growth and keeping much of the country mired in poverty. Nigeria is also home to the world’s second-largest HIV/AIDS-infected population, and has Africa’s highest tuberculosis burden. The country is home to more than 250 ethnic groups, but the northern Hausa and Fulani, the southwestern Yoruba, and the southeastern Ibo have traditionally been the most politically active and dominant. Roughly half the population, primarily residing in the north, is Muslim. Southern Nigeria is predominantly Christian. Nigeria’s Middle Belt is a diverse mix. Ethnic and religious strife have been common in Nigeria. By some estimates, 18,000 Nigerians have died in localized clashes since 1999. Divisions among ethnic groups, between north and south, and between Christians and Muslims often stem from issues relating to access to land, jobs, and socioeconomic development, and are sometimes fueled by politicians. The violent Islamist group Boko Haram has contributed to