Elections could further destabilise the violent, oil-rich Delta region

The seedy drinking-holes frequented by burly foreign oilmen in Nigeria’s main oil city of Port Harcourt are pretty empty these days. Kidnappings and killings of expatriate workers, car-bombs and violent robberies have persuaded many to stay behind the high walls and barbed wire of their own homes, as armed groups wreak havoc ahead of national elections next month.

In the past year, attacks on oil facilities have forced Nigeria to shut down a fifth of its production; over 100 foreign workers have been kidnapped in the oil-producing Niger Delta region. Higher security costs and a shrinking number of expatriates willing to take the risks of working there have sharply slowed new investment. The Nigerian government has lost billions of dollars in oil revenues. Now the multinational oil companies, such as Royal Dutch Shell, that operate in Africa’s biggest oil producer are bracing themselves for more trouble. The omens are not good; in the run-up to the elections in 2003, violence in the Delta forced Nigeria to shut down 40% of its oil capacity.
The Economist