UNITED KINGDOM: Militant insurgency could hurt investor confidence in Nigeria, analysts say.

Record ID: 236694

  • Title: UNITED KINGDOM: Militant insurgency could hurt investor confidence in Nigeria, analysts say.
  • Date: 9th May 2014
  • Summary: LONDON, UNITED KINGDOM (MAY 08, 2014) (REUTERS) (SOUNDBITE) (English) NATNET TESFAY, HEAD OF AFRICA, IHS COUNTRY RISK, SAYING: "Less say the Boko Haram issue having an effect on Nigeria's status as a mint country more so the insecurity that we see continuing in the Niger Delta with oil bunkering increasing to unprecedented levels having a significant impact on oil output as well as remittances to the public purse. This is having more of an effect on the Nigerian economy than Boko Haram, given that it's quite isolated to the north eastern area and as such it is quite removed from the centres of industry finance and markets that are seen more based in Lagos and Port Harcourt."
  • Embargoed: 24th May 2014 13:00
  • Keywords:
  • Location: Nigeria
  • Country: Nigeria
  • Topics: General
  • Reuters ID: LVA30SWABPEYKI1L81WQU66DTP7L
  • Story Text: Pressure is mounting on Nigeria's government to find over 200 schoolgirls kidnapped three weeks ago by Islamist rebels, Boko Haram in northeast Nigeria.
    Abuja residents staged a protest on Wednesday (May 07) demanding effective government action as the country hosted the World Economic Forum.
    The insurgents stormed a secondary school in the village of Chibok, on April 14, and carted off the girls in trucks.
    Boko Haram leader Abubakar Shekau has threatened to sell the girls "on the market", prompting a warning from the United Nations that this would make the perpetrators liable for war crimes.
    Two decades ago, Nigeria's military was seen as a force for stability across West Africa. Analysts now say it struggles to keep security within its own borders as an Islamist insurgency in the northeast and in parts of the country kills thousands.
    "The kidnappings are condemning of the government considering that they have been pursuing over a year of concerted military action against Boko Haram, it has been somewhat successful in finding the group's activities in the north east but it will undermine investor confidence about Nigeria's ability to address security issues within what are currently remote areas but these groups have now shown their ability to strike within the heart of government - Abuja," said Natnet Tesfay, Head Of Africa, IHS Country Risk, a business research and information firm.
    Security in Abuja was tight this week.
    The kidnappings and numerous other attacks by Boko Haram overshadowed Nigeria's hosting of the three day economic meeting.
    Nigerian officials had hoped the event would draw attention to the potential of Africa's biggest economy as an investment destination.
    President Goodluck Jonathan pledged to find the missing students, saying their rescue would mark "the beginning of end of terror" in the country.
    The United States says Nigeria has accepted an offer of military and civilian experts to locate and recover the captives. Britain is also sending a small team and France has also offered assistance.
    "In terms of insecurity within the region what is more interesting is the international response to the abduction and the fact that the U.S. the UK and France have stepped forward pledging support to the Nigerian government in its campaign against Boko Haram, now this will have implications for Nigeria's immediate neighbours so as any attack on the Boko Haram bases within Nigeria are only likely to intensify the movement of Boko Haram fighters outside of Nigeria into neighbouring countries of Niger, Chad and Cameroon," said Tesfay.
    The militants say they are fighting to reinstate a medieval Islamic caliphate in northern Nigeria.
    In the meantime, Africa's top crude-producing country continues to struggle with another major economic challenge, one that has seen it incur daily losses from oil theft by armed gangs, with estimates ranging from 100,000 barrels to 250,000 barrels a day lost to so-called "bunkerers".
    Oil theft has contributed to the high likelihood Nigeria will lose its top African crude oil exporter spot in May, as exports could fall to their lowest since records began in 2009.
    "Less say the Boko Haram issue having an effect on Nigeria's status as a mint country more so the insecurity that we see continuing in the Niger Delta with oil bunkering increasing to unprecedented levels having a significant impact on oil output as well as remittances to the public purse. This is having more of an effect on the Nigerian economy than Boko Haram, given that it's quite isolated to the north eastern area and as such it is quite removed from the centres of industry finance and markets that are seen more based in Lagos and Port Harcourt," said Tesfay.
    Boko Haram, seen as the main security threat to Nigeria, is growing bolder and extending its reach.
    A lack of investment in training, failure to maintain equipment and dwindling cooperation with Western forces has damaged Nigeria's armed services, while in Boko Haram they face an increasingly well-armed, determined foe.
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