Nigeria: The Risks of a Coup or Civil War – Exclusive Analysis Ltd
February 15, 2012

The country risk score for Nigeria on Exclusive Analysis’s Foresight
Country Risk Platform is now 4.3, which is in the Severe Risk Band.
Only the country risk scores for Somalia and Sudan are higher in the
sub-Saharan African region.

President Jonathan’s April 2011 electoral victory and policy agenda
has widened north-south divisions both nationally and within the
ruling party, the People’s Democratic Party (PDP). Jonathan’s
reformist policies, which included anti-corruption drives, the
transformation of the excess crude account into a tightly ring-fenced
sovereign wealth fund, the intensification of the privatisation of
parastatals and the long-delayed oil reform, have compromised the
economic interests of many influential leaders.

In January 2012, following the partial reinstatement of the fuel
subsidy due to nationwide protests, Jonathan launched investigations
into subsidy claims by oil marketers. Petroleum products agency PPPRA
then announced that over $4 billion was paid out in subsidy claims to
illegal petroleum importers in 2011. Numerous Nigerian politicians
have highlighted that high-ranking northern peers, like General
Ibrahim Babangida and former national security adviser General Aliyu
Muhammed Gusau, both of whom ran against Jonathan for the 2011 PDP
nomination, are involved in oil smuggling (bunkering). Babangida is a
former junta leader who had originally awarded many of the fuel import
contracts, and Gusau is a former intelligence chief reportedly
associated with Vitol.

In the wake of the fuel subsidy protests, southern leaders claimed
that such northern leaders were trying to sabotage Jonathan’s
presidency with dual threats: an intensifying Boko Haram insurgency
stoking sectarian division and the nationwide protests that disrupted
businesses in major cities.

Northern politicians, both from the opposition and the PDP, will
likely attemptto sideline  President Jonathan, possibly through
impeachment, unless he makes concessions to them. Such concessions
would include appointing members of the northern elite to top
government and military positions, suspending anti-corruption drives
(especially into oil smuggling), and offering an amnesty to moderate
Boko Haram members and supporters (as done with Niger Deltan
militants, MEND). They are also likely to seek the permanent
reinstatement of the fuel subsidy, a guarantee that the 2015 PDP
mandate goes to the north and revisions to legislation. These would
include the Petroleum Industry Bill, the Sovereign Wealth Fund Bill
and the privatisation of underperforming parastatals.

Boko Haram – Increasing Civil War Risks or Decreasing in Influence?

Boko Haram has increased the scale and sophistication of its attacks.
It is also shifting its strategy from targeting security forces and
government assets to inciting sectarian violence as a means to weaken
the Nigerian state. On 25 December 2011, Boko Haram carried out
attacks against churches in northern cities which left 48 people dead,
while on 1 January 2012 it issued a three-day ultimatum for all
southerners living in the north to leave the region.

If Boko Haram could mobilise pre-existing sectarian conflicts in the
Middle Belt region, in particular the highly volatile Plateau area,
this would present a credible escalation pathway to north-south civil
war. Leaders of influential Christian organisations, such as the
Christian Association of Nigeria, have called for the mobilisation of
Christian self-defence groups and warned of retaliatory attacks
against Muslims in the south if Boko Haram further incites sectarian
violence in the north. Armed groups most likely to engage in such
attacks would include former Niger Delta militants and other ethnic
militias like the Oodua People’s Congress from Lagos and the Igbo
separatist militia MASSOB.

However, it is important to note that Boko Haram is losing support
from northern leaders and more generally due to high civilian and
Muslim causalities that it causes.  On 1 February 2012, an alleged
splinter faction called Ansaru emerged from Boko Haram. It expressed
ideological differences with Boko Haram, mainly the group’s  targeting
of Muslims and intent to escalate sectarian violence. Likely splits
within Boko Haram and its lack of grassroots’ support limit the
group’s ability to expand its area of operations outside of northern
states such as Borno, Kaduna, Gombe, Kano and Bauchi. A reduction of
support from its northern political backers would also mitigate the
risk of an escalation into civil war. The likelihood of such a loss of
support would increase if President Jonathan makes the aforementioned
political concessions to northern elites.

Exclusive Analysis Ltd will be holding a web briefing on this topic on
28 February 2012. Head of Africa Forecasting Natznet Tesfay will
deliver the briefing and will hold a Q&A session. To register for the
briefing or to find out more, please contact Amanda Russo at
[email protected].

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