Nigeria

Violence erupted on July 18 between members of the Yoruba and Hausa ethnic groups in the southern Nigerian town of Shagamu and carried on into the following day. At least 66 people were killed in the town, which lies some 40 kilometers north of Lagos. And while a tense peace has emerged at the urging of local leaders -- and with the arrival of a Mobile Police Force detachment -- Hausas fearful of Yoruba retaliation reportedly flooded out of the town on July 19 and have not yet returned. The Shagamu violence follows clashes between three other ethnic groups -- Itsekiri, the Urhobo, and Ijaw -- over the spoils of local government in the oil town of Warri on the eve of newly elected President Olusegun Obasanjo's inauguration in late May, which left at least 100 people dead.

International acclaim for the recent democratic transition in Nigeria has overshadowed the primary, fundamental, and ongoing problem facing President Obasanjo. Nigeria's political problems stem from competition between the country's estimated 250 ethnic groups, and particularly between the two largest groups, the Hausa in the north and the Yoruba in the south. Obasanjo was tapped for the presidency by a group of northern military leaders for two reasons. One was to polish up Nigeria's international reputation with at least a reasonable facsimile of democratically elected civilian government. The other was, if not to bridge the gap between the competing ethnic groups, then at least to blunt ethnic unrest.

Obasanjo succeeded in the first task. Obasanjo, who led Nigeria's military government from 1976-1979 following the assassination of General Murtala Muhammad, was the first Nigerian military leader to voluntarily hand over power to a democratically elected civilian government. Until his own inauguration, he was also the only military leader to do so. When last in power, Obasanjo built an international reputation for his foreign policy, which was critical of the white minority governments in South Africa and Zimbabwe. After stepping down, and thereby boosting his international credentials, Obasanjo remained in the public eye, sitting on international commissions, running for UN Secretary General, and criticizing subsequent Nigerian military regimes. Obasanjo was sentenced to life in prison under former military leader General Sani Abacha for allegedly plotting a coup attempt, though his sentence was shortened due to international pressure and he was released following Abacha's death last year.

Obasanjo's first two months in office have seen him acting the statesman. He has attended the Organization of African Unity Summit in Algiers and visited countries all over Africa. He has also been keen to put himself in the forefront of international efforts to end the region's various wars. All told, Obasanjo was the most politically viable and acceptable candidate, and when Nigeria's military leaders relinquished power to him, they succeeded in mending Nigeria's image -- for the time being.

Success on the second count is not so clear. Obasanjo was backed by a cabal of northern Nigerian interests, including former Nigerian leader General Ibrahim Babangida, in large part because Obasanjo was a pro-northern Yoruba. It was hoped that, through a Yoruba president with a Hausa power base, the Hausa could effectively maintain power while pacifying the Yoruba. The Yoruba had lost their political leader, Moshood Abiola, to an apparent -- if curiously timed -- heart attack almost immediately after the death of General Sani Abacha.

However, Obasanjo has been criticized even in his own home district as being a puppet of the military. The make-up of his cabinet does little to undermine this notion as it is filled with people who have, at various times in the past, served in the military governments that have largely dominated Nigeria for the last 30 years. And while mistrusted by the Yoruba, Obasanjo is also mistrusted by the Hausa, who are unsure of just how devoted he is to their interests. According to media sources, there is a growing fear among the Hausa that they may face repercussions under their new Yoruba president for the past 15 years of Hausa politico-military dominance.

The violence in Shagamu is the first real test of Obasanjo's ability to bridge the ethnic gap. As of July 20 the situation appears to be stable, with minimum government intervention. A curfew has been established, a Mobile Police Force detachment has been sent into the area, and an investigation is underway. The Shagamu clash thus far appears to be an isolated incident, and to be under control. The underlying issues have not gone away, however, and Obasanjo's moderate response may not be as effective should the unrest spread or recur in Shagamu.

Obasanjo is essentially faced with two choices when it comes to ethnic violence. He can attempt to protect his carefully crafted international and domestic image as a democrat and act benignly toward outbreaks of violence. Or he can crack down on freedoms in an effort to suppress the violent ethnic competition. This is how military governments in Nigeria dealt with ethnic tension for 30 years -- albeit to the detriment of their international reputation.

For now, Obasanjo is primarily interested in the international game, and is hoping that a mild hand, his image as a peacemaker, and deep divisions among the Yoruba will suffice to control outbreaks of violence such as those in Warri and Shagamu. This remains to be seen. There have been calls for retribution, particularly from the Yoruba, but leaders of both groups are attempting to quiet things down. If, however, there is a spiral of violence and revenge, Obasanjo may be forced to crack down -- or have the military do it for him.

In his first few months in power, Nigerian President Olesegun Obasanjo appeared to be making all the moves expected of a new president. He purged the military of 93 high-level officers for involvement in political activities, meaning they held positions of power and influence in the Sani Abacha regime, and he appointed ministers who had experience in past military regimes. His key petroleum "advisor," Rilwanu Lukman, was foreign minister in Ibrahim Babangida's military regime and Defense Minister Theophilus Danjuma was chief of staff of the army during Obasanjo's own tenure as military ruler from 1976-1979.

Since taking these steps, however, Obasanjo has begun testing the limits of his civilian government. First, on August 18, Defense Minister Danjuma announced that the Nigerian military would be cut from 80,000 to 50,000 troops over the next few months. At the time, the excuse for taking such drastic measures was the need to professionalize and upgrade the military by cutting the fat. A report in London's Daily Telegraph quotes a Nigerian government source as saying the real aim of the cuts was to protect future governments from the threat of a military coup. That said, it would have been impossible for Obasanjo to make the decision on his own. No single force in Nigerian politics can protect him from military retribution though Obasanjo does enjoy some military support, particularly among former military dictator Babangida's clique.

Signs that the military may have disagreed with the cuts emerged on August 24. The president said in a nationally televised address that his goal was to "redefine" the role of the army and that the cuts announced by Danjuma were not set in stone. With this in mind, it is possible that the announced cuts were merely a trial balloon sent up to see how the military would react. Recent rumors about Danjuma's mental health may have been designed to give Obasanjo some cover in case there are serious signs of a backlash. It always helps to have a "crazy man" around on whom you can blame seemingly irrational acts.

Second, Obasanjo has taken some strong steps to limit the military's involvement in the oil sector, a place where high-level officers are believed to have enriched themselves in the past. The Nigerian oil sector has traditionally been divided approximately 50-50 between foreign and domestic oil companies. Most of the domestic companies have involved the use of front companies, widely believed to be associated with military officers and friends of the regime.

The same day Obasanjo announced the military cuts, the Nigerian National Petroleum Company announced a restructuring of the Nigerian oil sector, which exports 1.8 billion barrels-per-day (bpd). The extraordinary thing about the restructuring was that virtually all the contracts went to foreign oil companies rather than Nigerian firms, reducing a traditional military stronghold. Before the restructuring, the government laid down strict conditions for the sector. Any company that sought a contract was required to demonstrate substantial turnover, profits and a willingness to invest in local communities. These were conditions that the traditional front companies simply could not meet.

The other half of Nigeria's oil exports are carried out by six large international oil consortia (Shell, Texaco, Mobil, Total, Agip and Chevron). This group has come under increasing pressure due to unrest in the oil-producing Niger Delta region. While the area produces most of Nigeria's oil, it remains one of the nation's poorest areas. Over the last several years, local tribes have engaged in an increasingly violent campaign against the oil companies. Heavy military deployments to the Niger Delta have been unable to stem this violence, recently epitomized by sabotage, kidnapping and the murder of foreign oil workers.

At a meeting on August 1 with NNPC Chairman Olaseki it was revealed that unrest in the region had already cost Nigeria $1 billion in oil revenue in 1999. Nigeria's oil revenues have dropped precipitously since 1997, when it earned $15 billion. Obasanjo's current budget, submitted in July, expects 1999 oil revenue to amount to only $8 billion. Shell, Nigeria's largest single producer, is currently operating at only 25% of its capacity of 1 million bpd and on August 17, Texaco announced that it was suspending its 65,000 bpd operations due to community unrest. While Nigeria was producing close to its OPEC quota in May its July figures show a 70,000 bpd drop in production. These numbers are expected to continue dropping for the next few months at least.

The establishment of a "truth commission" to uncover evidence of human rights abuses by past military regimes is the third step Obasanjo has taken to ruffling the feathers of former colleagues. If experience in other countries is any indicator of what may happen, Obasanjo may have difficulty controlling the commission. The justice running the commission has a reputation for independence and the commission has already received over 8,000 complaints against the military regime. Interestingly enough, Obasanjo is in the unusual position of potentially being both a defendant and a plaintiff to the commission. From 1976 to 1979, he was the military ruler of Nigeria and from 1996 to 1998, he was a political prisoner. However it shakes out, it is unlikely that the military will appreciate having its dirty laundry aired in public, even if the commission's powers of enforcement are less than clear.

To have undertaken such drastic steps against a military that has run his country for the last three decades, Obasanjo must feel protection from some area. We believe he is counting on two primary factors. First, the oil sector. With the awarding of the new oil contracts, it appears that Obasanjo is trying to encourage these companies to invest in the region where they are located. One of the direct causes of misery in the delta is that most of the money appropriated for community development has gone straight into the pockets of the military and other corrupt leaders. Obasanjo's moves to link oil development to community development are an attempt to win the "hearts and minds" of the local population and thereby reduce the violence. An indication that the strategy may already be paying dividends is the August 24 announcement that Shell has reached an agreement with the government and local tribes to resume operations in the delta.

The other major force Obasanjo is counting on for protection is the international community. Obasanjo has long cultivated his personal international ties. During his years out of power he was a major player in the UN and was a front-runner to replace outgoing UN Secretary-General Perez de Cuellar in 1991. He also has close ties to former U.S. President Jimmy Carter. His focus in the first two months of office has seemingly been to improve Nigeria's foreign relations. Obasanjo's jet-setting is not accidental. Nigeria will be absolutely dependent on foreign aid and investment if it is ever going to be able to make its oil industry pay for the development of society as a whole. Obasanjo has succeeded brilliantly in his efforts to line up potential investors during his first months in office. This reserve would quickly dry up, however, if the military or serious unrest undermined the government. The military may realize this and is holding its hand in the interest of future economic gains.

If this were not the case, we would expect a military coup in Abuja within the next few weeks. There are no indications that this is about to happen. Obasanjo is playing a dangerous game, betting everything on economic success. So far, the military appears to be willing to play along, accepting short-term losses in exchange for Obasanjo's long-term promises. The same can be said of the oil companies, which are Nigeria's key to economic success. By cutting the military as he campaigns against corruption, Obasanjo is clearly hoping to consolidate his power base during the current window of opportunity. It remains to be seen how long his honeymoon will last. If this policy does not begin to show success fairly quickly, Obasanjo's house of cards may well collapse.

President Obasanjo has recently stepped up his campaign against the corruption of the various military regimes that have ruled Nigeria during the last 30 years. Most recently, the government announced Oct. 6 the arrest of Mohammed Abacha, son of late military dictator Sani Abacha. Obasanjo is apparently also proceeding with his prosecution of Abacha's former security chief, Major Hamza al- Mustapha - either oblivious to or unconcerned about possible ramifications.

This lack of concern could be due to Obasanjo's confidence - allowing him to attack a diverse group of former military rulers - or it could betray desperation. The systematic nature of his campaign, however, does not indicate desperation. In recent months, Obasanjo has taken legal and economic steps against members of the most recent military regimes. We do not see any particularly strong factions capable of supporting Obasanjo against the others, which raises the question of how he will survive this current bid for increased power.

First, Obasanjo stepped up his campaign in August, announcing significant cuts in the military and a clampdown on corrupt oil concessions [ http://www.stratfor.com/SERVICES/GIU/082599.ASP ]. Since then, there have been a series of arrests culminating in that of Abacha, Jr. Al-Mustapha was arrested on suspicion of murder almost immediately after Obasanjo assumed office in June. The al- Mustapha investigation has come uncomfortably close to the man who willingly handed power to Obasanjo in May, Gen. Abdulsalami Abubakar.

The allegations are slowly making their way to the top. Mustapha's henchmen, Sgt. Barnabas Mcheila, "alias Rogers," has described how a hit squad known as "Strike Force" worked under the Abacha regime to do away with political opponents. This squad operated under the direct control of al-Mustapha and was responsible for dozens of assassinations and attempted assassinations. Al-Mustapha was also reportedly involved in the murder of Sani Abacha, who - as the current conventional wisdom in Nigeria holds - died of poison rather than a heart attack.

Now the plot thickens. On Sept. 9, Gen. Jerry Useni, former minister of the federal district under Abacha, was detained in connection with Abacha's murder. He is the highest-ranking official to be detained so far, although the allegations likely will continue to climb. Abubakar admitted last year that Abacha had planned to retire him and other members of his regime - but conveniently died the day before.

As of yet, no formal charges have been leveled at Abubakar, though Obasanjo is sending a clear message that the Abubakar faction is not exempt from investigation. The first sign that the gloves were coming off came Oct. 6, as the senate announced Abubakar might be called to testify before the committee on drugs and narcotics. If called, he will have to explain why he ordered the removal of the national law enforcement agency from the ports prior to handing power to Obasanjo.

In addition to these investigations, Obasanjo is going after the wealth of former military rulers. In his speech before the U.N. General Assembly Sept. 23, Obasanjo requested an international convention or agreement to compel banks to repatriate funds to countries from which they have been stolen. On Sept. 16, he ordered 24 senior military officers to return lands in Lagos state illegally appropriated under former military regimes. Finally, Abacha Jr.'s arrest stemmed from corruption charges alleging that he and his family embezzled millions as part of a deal with then- President Abubakar.

The opposition does not appear to be taking these steps lying down. A new political group representing northern (Hausa-Faulani) interests, the United Democratic Front, say their concerns are not being properly addressed because of their constituency's ties with past military regimes. The group has called on several former leaders, including former heads of state Alhaji Shagari, Gen. Mohammed Buhari, Gen. Ibrahim Babangida and Abubakar, for support. Obasanjo seems to be taking notice: Several reports indicate that security was beefed up at the Presidential Mansion on Oct. 5 - prompting rumors of a coup attempt - although the government has made moves to play down this possibility.

While it is clear who is against him, it is not clear who does support Obasanjo. Popular support is unlikely. While his policies have achieved much acclaim among the public at large and within the international community, the president's recent actions have not been accompanied by mass demonstrations in support of the government. It is also unclear how international efforts could protect Obasanjo.

A somewhat more convincing possibility is that Obasanjo is counting on money from the oil sector to bolster his support. However, while the oil situation has been improving, its growth is not spectacular and there is still much to be done. A sudden economic windfall that could be used to pay off allies is not in sight. Of course, given the seriousness of current allegations, even cash might not be a sufficient payoff.

Most interestingly, there could be two factions in the military. Obasanjo's search for illegal foreign assets has studiously avoided implicating Gen. Babangida, suggesting he may be behind Obasanjo. In addition, the Pathfinder Group was founded recently, with the express purpose of promoting Obasanjo's policies. The group is headed by the minister of police and former adjutant general of the army, retired Maj. Gen. David Jemibewon, who has long been associated with pro-democracy factions within the military.

Obasanjo may be trying to rally military allies behind the scenes or through the Pathfinder Group, but neither Jemibewon nor Babangida have the power to protect Obasanjo should it come to out- and-out confrontation with other factions in the military - particularly those of Abacha and Abubakar.

None of these possibilities explain how Obasanjo is surviving these maneuvers. He may in fact be playing a comparatively weak hand to its fullest. Obasanjo is a seasoned political operator and these moves have not been made recklessly. He has made it clear, however, that no one in either the Abacha or Abubakar cliques can consider themselves to be safe.

The announcement on October 5 that the Oputa Human Rights Commission was extending its investigations to cover all abuses from 1966 onwards serves notice to all other military rulers that they are also subject to scrutiny. Further, Obasanjo can hold out the possibility that various groups could escape the commission in return for support against others - or at least non-interference. This could hold potential enemies at bay.

Obasanjo is going after the Abacha and Abubakar cliques first because they represent the greatest threat to his regime. Since they held power most recently, more of their cronies remain in positions of influence. Their abuses are also the most recent and foremost in the public's imagination. Unless there is some shadowy patron with considerable power - and we can find no likely candidates - Obasanjo is playing a savvy political game designed to keep his opponents as well as his allies off-balance while he consolidates his hold on power.

The Nigerian air force (NAF), based on the eastern flank of the Tactical Air Command in the cities of Yola and Maiduguri, was placed on maximum alert Jan. 3, reported the Nigerian newspaper Vanguard. The Nigerian army's armored division in Maiduguri was also placed on alert. The National Security Council, headed by Nigerian President Olusegun Obasanjo, reportedly directed the immediate reactivation and upgrading of the two NAF bases in Yola and Maiduguri. According to the report, the bases, which house the air force assault helicopter squadron, were ordered to be ready by the end of the month.

Vanguard defense sources said that the alert followed Nigeria's discovery that France was building a military base in Gagura, a town in Cameroon located near the disputed peninsula border with Nigeria. The Bakassi peninsula is a 400 square mile area that juts out into the Gulf of Guinea and is rich in oil reserves. According to the report, the French base is nearly completed and has facilities for deploying military aircraft. Vanguard's sources said the decision to build the base might be connected with Cameroon's ambition to control the peninsula by any means. It is likely that France - a strong ally since Cameroon's independence - has interests in the peninsula's oil. Both countries lay claim to the area, which has a Nigerian majority population.

The dispute over this peninsula dates back to the 19th century when Western colonial powers divided Africa. Britain and Germany failed to move the dividing line between what is now Nigeria and Cameroon far enough out into the Gulf of Guinea, which left the Bakassi peninsula in limbo. A 1913 agreement would have ceded Bakassi from British-colonized Nigeria to the German protectorate of Kamerun, but Britain and Germany went to war in 1914. After Germany's WWI defeat, Cameroon was divided between the British and the French but the peninsula issue remained unresolved. An agreement similar to the one in 1913 was reportedly drawn up in 1975 as a reward to Cameroon for its neutrality during the Nigerian civil war in 1967-70. However, Nigeria now claims that any such document is null and void because it was never ratified before Nigerian authorities were toppled in a 1975 military coup.

Since 1975, border tension has continued. Several bloody clashes have left casualties on both sides, igniting public outrage. Nigerian military authorities in 1993-94 often accused Cameroon paramilitaries of burning down villages and displacing thousands of ethnic Nigerians. Full armed conflict broke out in 1994, and Cameroon brought a case before the International Court of Justice (ICJ) in March of that year.

While the legal issue is tied up in the ICJ, the real issues are beginning to emerge. France cooperates militarily with Cameroon. The two have a defense agreement, and France continues to remain active in Africa ( http://www.stratfor.com/services/giu/111497.asp ). It now appears that Paris also has oil interests in the peninsula and is willing to protect them militarily. In July 1999, Africa News reported that Nigerian soldiers had sent letters to their government complaining about deplorable living conditions while stationed on the peninsula. In these letters, the soldiers also reported that some 30 oil rigs drilled on a daily basis between East Atabong, a Nigerian camp, and Edima Abasi, where Cameroon paramilitaries are stationed. The soldiers reported that the French oil consortium ELF is responsible not only for the oil drilling, but also for copious funding to maintain the Cameroon paramilitaries.

If Cameroon, and by extension France, is eager to solve the dispute militarily, Nigeria will likely oblige. After all, Abuja has not fared well in the legal battle occurring in the ICJ. When Cameroon took the case to the ICJ, Nigeria challenged the court's authority to hear the case. The court ruled that it did have jurisdiction. In November 1998, Nigeria then filed an appeal requesting an interpretation of the judgment. The ICJ declared that request "inadmissible" in March 1999. The international tribunal will eventually come to a ruling based on legality and fairness, rather than Nigerian and French oil interests. An ICJ solution is unlikely to benefit any party involved, leaving military action the optimal strategic solution.