Nigeria, Africa’s most populous country, is experiencing its longest period of civilian rule since independence from the United Kingdom in 1960. Nigerian President Olusegun Obasanjo has ruled since his election in 1999.

Prior to Obasanjo’s election, the country had not held successful elections under a civilian government since independence. The Obasanjo administration has made it a priority to reform the Nigerian economy, which includes privatizing state-owned entities.

High Oil prices were the driving force behind Nigeria’s economic growth in 2005. The country’s real gross domestic product (GDP) grew approximately 4.5 percent in 2005 and is expected to grow 6.2 percent in 2006. The Nigerian economy is heavily dependent on the oil sector, which accounts for 95 percent of government revenues.
 
Even with the substantial oil wealth, Nigeria ranks as one of the poorest countries in the world, with a $1,000 per capita income and more than 70 percent of the population living in poverty. In October 2005, the 15-member Paris Club announced that it would cancel 60 percent of the debt owed by Nigeria.
 
However, Nigeria must still pay $12.4 billion in arrears amongst meeting other conditions. In March 2006, phase two of the Paris Club agreement will include an additional 34 percent debt cancellation, while Nigeria will be responsible for paying back any remaining eligible debts to the lending nations. The International Monetary Fund (IMF), which recently praised the Nigerian government for adopting tighter fiscal policies, will be allowed to monitor Nigeria without having to disburse loans to the country.
 
Source: Energy Information Administration