Nigeria did not see beyond oil – Obasanjo

Former President Olusegun Obasanjo became Nigeria’s head of state for the first time in February 1976 following the assassination of late General Murtala Muhammed. Keeping the chain of command established by Muhammed in place, Obasanjo pledged to continue the programme for the restoration of civilian government and to carry forward the reform programme to improve the quality of public service. In October 1977, a Constituent Assembly was convened in order to draw a new Carta Magna, which was later approved in September 1978. This led to the abolition of the military government, the end of the state of siege which had come about with the arrival of the military regime in 1966, and the legalisation of political parties. Obasanjo served until October 1, 1979, when he handed power to former President Shehu Shagari, making him the first leader in Nigerian history to surrender power willingly. In late 1983, however, the military seized power again. Obasanjo, being in retirement, did not participate in that coup, nor did he support it.
But during the dictatorship of late General Sani Abacha (1993–1998), Obasanjo spoke against the human rights abuses of the regime, and was imprisoned with the claim of planning a coup. He was released only after Abacha’s sudden death on June 8, 1998. In the 1999 elections – the first democratic elections in 16 years – Obasanjo was drafted into the race for the presidency as the candidate of the Peoples Democratic Party (PDP). Obasanjo won the elections and was later re-elected in 2003 for another four-year term of office. While leading a public campaign against corruption and implementing economic reforms in Nigeria, Obasanjo was widely seen abroad as an African statesman championing debt relief and democratic institutions. The former Nigerian president vacated office after the April 2007 elections won by late President Umaru Yar’ Adua. The former Nigerian president has recently been appointed Special Envoy by United Nations (UN) Secretary General, Ban Ki-Moon, to the war-torn Democratic Republic of Congo. Obasanjo at a panel of discussants moderated by Mme Ritula Shah, a journalist from BBC radio, to address the need for a new era of social justice and sustainable societies in the wake of the global financial and jobs crisis at the 100th International Labour Conference (ILC) held in Geneva, Switzerland, called on world leaders to give African countries new sets of definitions of how to measure and assess their economic indicators in our growth and development. Obasanjo, a member of The Club de Madrid, an independent non-profit organisation that is composed of 80 democratic former presidents and prime ministers from different countries, in response to a growing demand for reinvigorated action on countering the lingering effects of the global crises, growing demand for support among leaders in democratic leadership and governance, insisted that the call for World Financial Organisation (WFO) to regulate the trillions of dollars that move around the world in one day, almost absolutely unregulated must be enforced. Senior Correspondent, Sylvester Enoghase, was there. Excerpts:

What is your reaction to job creation through Tripartism in the world?
Nobody will be against Tripartism because it does work and it must be intact, be continued to be made to work and I believe that Tripartism is the position of the Director General, International Labour Organisation (ILO), Juan Samova, that we should have a sustained development with, of course, social justice as the outcome. And social justice in this case as has been pointed out so far today by ILO. It is ILO that has the unique or that is in the unique position of bringing and ensuring that a comprehensive development that would lead to social justice and decent work are brought together by the government, the private sector and the unions of the workers.
And that’s really what I believe that creating jobs is about. That must be made to happen, otherwise, nothing will happen about creating jobs for the unemployed youths.
How can traditional vision through state building be able to go into the development of Africa?
I think state-building is intimately connected with politics and without executive decisiveness and legislative action, state-building cannot proceed.
And so, in Africa, considerable burden of governance rests on the shoulders of the political leaders, who need to rise to the challenge of overcoming a history of fractiousness, patronage, and indecision for Africa to develop.
And to achieve development in the continent, governments and many highly respected and effective organisations, both within and outside of governments must work to strengthen democracies and democratic institutions.
What is your reaction on the criticism of Nigeria in the question of high corruption in the public sector and the unfair distribution of wealth by its leaders?
Thank you. Let me first correct my brother from Mozambique on why we in Nigeria did not try to fight liberation war. We had to fight the civil war, which was in fact, not devastating than the liberation war and I think that it is only Ghana that has so far avoided fighting whether it is liberation war or a civil war. Now that they have got oil, they may have a civil war to fight (laughs…).
You are absolutely right at that accusation of corruption as a cankerworm that has dilapidated Nigeria’s development. Or that has not allowed Nigeria to develop as fast as to get to where we should get to; when and how we should get there. But I will come to that.
But the point that was made earlier, by both President John Kufuor of Ghana and myself, that at independence, we had inadequacy of both human and financial capital.
But is that the case in Nigeria now?
It is no longer the case right now, but then, it was something that was a problem at the beginning. Now, when we were trying to get out of the problem, we ran into the civil war. We came out of the civil war and then, the oil became a doom, rather than a boom for us because, nobody wanted to do anything than stay in oil business. And we were now torn in every other thing like agriculture, industry and oil. Nobody wanted to do anything except oil. We were thinking oil, we were sleeping on oil and we were almost drinking oil. And that was as bad as it was. And then, we developed this oil mentality which was not in the best interest of Nigeria.
In a nutshell, while Ghana was torn between industry and agriculture, in the case of Nigeria, we were turn between industry, agriculture; and oil and it is even much worse for us than that of Ghana.
Do you mean, Nigeria did not see beyond oil?
Yes. We did not see beyond oil. That was one of the misfortunes of Nigeria, or regrets of Nigeria.
But more importantly, corruption came in. And corruption that came in, came in initially with politics at independence when our politicians gave out a contract, 10 per cent was taken, as a way to develop their parties as party fund. Then, of course, it went beyond 10 per cent to 20 per cent, 25 per cent and at times, it grew so large that in fact, when you were given a job, you did not care to do it, rather, you shared the money.
Now, that is very bad. And when I became the president of Nigeria, the first thing that I did, even after my election, was to establish an independent body to fight corruption. Now that body was so effective, in fact, two bodies, one a commission against financial crimes. And they were both so effective that ministers of government and a head of the police, the head of parastatals were put in jail.
Now, if you are going to fight corruption, it is not a one- night, or a one-day wonder. You have to be consistent and persistent with it.
Do you feel that there is a will for Nigeria to be persistent?
Well, I haven’t seen that will of persistency and consistency in Nigeria because the people that are involved in corruption are strongly entrenched and unless you are ready to confront them at the point of even sacrificing your life for it, then you will give in and when you give in, that is the end of it.
Is Nigeria ready for that economic growth and social dimension on building the concept of development?
Yes, I believe that economic growth cannot be ignored because you have to grow and it is only when you grow that you have something to share. If you are going to talk of social justice, if you are going to talk of shared society, you must have something to share.
The world leaders need to redefine new ways to defining and measuring the economies in African continent, to achieving desirable economic growth, and development to address the need for a new era of social justice and sustainable economic growth in African societies in the wake of the global financial and jobs crisis.
I think it is only when the leaders of developed world offer Africa a new basis of judging economic growth and sustainable development that countries in Africa can expand their domestic demands to achieving real economic growth and development as well as social justice.
In fact, African countries should have new sets of definitions of how to measure and access their economic indicators in our growth and development, outside the yardstick for the developed nations of the world for us to achieve sustainable economic growth and development
This is because economic growth in itself is not enough to measure development since as long as economic growth or indicator has been used to describe development or how much progress a particular nation is making, now you can have growth without having even development, you can have growth without having social justice.
We in Nigeria for instance, because they say we are an oil economy, you will hear that we have the GDP of seven per cent and you say well, where is it reflected? And they would say yes, oil is 14 per cent, Information Technology or ICT is 15 per cent, but what about agriculture, what about manufacturing, what about these services that people feel that they want to enjoy? I believe that we need to have a new definition or a new set of indicators to show what progress a particular country is making and it should be inclusive of economic growth as social indicators.
For instance in Nigeria, if you say we are growing, how much has this translated into job opportunities, how much employment has been created? If you say we are growing, how much has this affected infant mortality, if you say we are growing, how much has it affected maternal mortality, if you say we are growing, how many more children have gone into school? How many people have access to medical care?
It is only when you bring these together... But to me, I will say yes, a country is growing, growing in economic terms and in terms of social justice.
To what extent has the aftermath of the global financial crisis affected Nigerian economy?
I believe this is why some people are now talking about World Financial Organisation (WFO) as opposed to World Bank and International Monetary Fund to regulate the trillions of dollars that moves around the world in one day, almost absolutely unregulated.
I believe that there is need for regulations of financial transactions globally.
Let me just add one point and come back to corruption.
Whatever we do in our countries must be backed up by rules, by those countries with corrupt citizens. This is because corruption is a two-ways affair - the giver and the taker.
And most of the givers are in developed countries and they are protected. And so, in most cases, there are countries in Europe that give tax relief for corruption that has been given in Africa countries and in Latin American countries.
Then, how can we, no matter what we do, achieve success in fighting corruption. We imprison our people found to be corrupt, but when we say to them, these are your people that have given our people bribe, they do not do what America has done.
And I believe that the United Nations (UN) anti-corruption Convention should be signed by all countries in the world so that the laws should bring all involved in corrupt practices to book without exemption.
Will that change the attitude of the leaders?
Well, yes. I remember what President Kufuor has said because I think it is a matter of leadership. And that is why we called on all peoples, leaders and organisations in the world to use their spheres of influence to work together to promote and ensure social inclusion and cohesion.
Now, a leader who is only thinking about the next election, there is limit to what the citizens can expect of him. Our leaders must leave beyond the next election. This is why we call on them to recognise that achieving social cohesion and creating a world saved from difference is essential for the well-being of individuals, states and the world as a whole.
Our leaders must think beyond the next generation, in fact, the next generation after that. That is the only way Africa can get good leaders.
Do you have any leader as an example that can think beyond the next election and next generation now?
(E-e-e-e) I have met quite a number of leaders in the world and in my short period of life, and I believe that they are few. We have about two in Africa, without any reason to embarrass anybody, I will say two or three in America. In Europe, maybe I see one or two and in Asia, maybe I see two or three. But I will not name anyone so that I will not cause diplomatic row.


By Daily Independence

Gaddafi Seeks Nigeria's Support, Sends Envoy to Jonathan - Britain Promises Stronger Ties With Country

Abuja — President Goodluck Jonathan on Friday at the State House, Abuja, received a special message from embattled Libyan leader, Muammar Gaddafi.
Gaddafi's Foreign Affairs Minister, Abdullahi Oubaidi, brought the message to the Aso Rock Villa.
The envoy met with Jonathan behind closed doors. The visit may, however, not be unconnected with Gaddafi's quest for support from Nigeria, a country he had only recently suggested should be Balkanised along religious lines to avert recurrent crises.
Ironically, Libya is currently in the throes of a civil war as rebel militias determined to oust Gaddafi from power and backed by western powers, are closing in on the country's capital, Tripoli.
Jonathan, however, told the Libyan envoy that Gaddafi's fate would be discussed at the forthcoming African Union (AU) summit in Malabo.
Also on Friday, Jonathan welcomed the commitment of the United Kingdom (UK) to reinvigorate bilateral relations with Nigeria.
He spoke when he granted audience to the British Secretary of State for International Development, Andrew Mitchell.
"Nigeria is pleased at the commitment to improve relations, especially economic and trade relations," said Jonathan, who noted that Mitchell's visit was the first by a cabinet minister from the UK in nearly five years.
He recalled Nigeria's historic relationship with Britain, as well as its key role in Africa, and reassured Mitchell of the country's commitment to improving the economy in order to raise the living standards of citizens.
The President expressed appreciation for Britain's promise to support Nigeria's efforts at economic development and security sector reform, urging that access to European markets would make a great difference.
The UK minister also called on Vice President Namadi Sambo, who equally pressed for increased partnership and cooperation between the UK and Nigeria particularly in the areas of enhanced economic, cultural, historical and commercial ties.
"Such partnership will enable us achieve great objectives, create jobs and transform our economy to one that will support growth
"There are many strong programmes to ensure that we create the necessary enabling environment to ensure attainment of Millennium Development Goals (MDG's) and ensuring economic development particularly in the areas of building of power plants, transmission lines and distribution networks all over the country, increased capacity of gas production, construction of hydro multi-purpose dams to provide irrigation for farming, building of more refineries and petro-chemical industries, provision of good road transportation networks, rehabilitation of abandoned railway lines amongst others," Sambo said.
Mitchell had disclosed that the United Kingdom wanted to reinvigorate relations with Nigeria through stronger economic cooperation, and support for better basic services and security sector reform.
He assured of his country's deep commitment towards supporting Nigeria's economic reforms and ongoing privatisation efforts, noting that it is the private sector that creates jobs not the government.

By Chesa Chesa
Daily Independent 

Mobil Out Of Athletics, What Next?

We should appropriate some things as national assets. Among them is the social responsibility agenda of some of key organisations in our environment. On my mind today is Mobil Athletics Championships that the oil company has sponsored for decades and which it said it had finally decided to stop.

The message would be shattering for athletics that hardly gets sponsorship, but the writing has been on the wall for more than 15 years. Mobil stopped its internal involvement with the IAAF Grand Prix in which it used to be a title sponsor and had then tried the same move back home. Somehow, it listened to reason about the peculiarities of its engagements with Nigerians and continued the competition, which used to be a flagship event with global attention.

Nigeria had a horde of world-class athletes then based abroad who were in high demand in the international circuit. Their commitment to the home competition that Mobil sponsored was even considered a sacrifice on their part, as they had to leave chasing fame and fortune abroad to make the home appearance.

What sustained the home event was the strategic decision that was made years ago to tie the Mobil competition to the trials for Nigeria’s selection of the national teams for international competitions.

The athletics calendar was staggered enough that almost every year there was a major competition that Nigeria had to select a national team.

Mobil’s consideration for withdrawing, earlier, included costs. There were also comments that the sponsorship had image challenges for Mobil. I remember vividly, when I had a closer involvement with athletic, a particular Mobil official had an astounding arrogance that did the company no good.

The image challenges arose from how she carried on while dealing with everyone involved in the competition. The media were her favourite targets. Yet the sponsorship continued with the understanding that Mobil’s contributions to Nigerian youth were more important than the behaviour of its official. The event gave Mobil high visibility, more visibility than whatever it was doing in the immediate communities where it operated.

When I heard of this withdrawal, I was wondering what arguments the federation would push forward in asking Mobil to continue the partnership with athletics. Oil is still selling well. Mobil’s operations in Nigeria are going on very well. There have been no hints of Mobil stopping oil productions in Nigeria. If it has challenges, they are the same ones other companies in Nigeria face.

Both sides have failed to improve the event. Moreover, one had thought that the sponsorship would have been deepened to include preliminaries that could have been scattered across the country. The quality of the competition has dropped because the initial unsung works that produced quality athletes have ceased.

Frustrations in the relationship have been mutual. Like in all engagements, both sides must find a way to re-engage for better results. I do not think Mobil makes enough noise about the fruits of its investments that opened the door to stardom to generations of Nigerian athletes who became world stars.

Without Mobil, they would not have gone that far, or would have under more dimming circumstances. The athletics authorities on their part must find a way to make their brand outstanding. They still have something Mobil needs, but they are unable to prove it to Mobil.

I would like to see Mobil return to continue a national assignment that has generated global waves with the output of Nigerian athletes. Mobil cannot abbreviate the applause the global community that gleefully watched as it oiled Nigerian athletics.

Warner Resigns To Save Blatter
THE story of the FIFA scandal is ending with the resignation of Jack Warner, the FIFA Vice President who was a central figure in the allegations that have dogged FIFA more seriously in the past months.

His resignation makes sense. It means that a deal has been reached. Warner had threatened to spill the secrets about the deals in FIFA. Was he seriously? Anyone who understands how FIFA operates would know he was a man too close to too many FIFA deals that he could have known more than enough to make FIFA authorities uncomfortable.

Is it a puzzle that the planned investigations against him have been stopped? Joseph Sepp Blatter is doing all he can to remain FIFA President. Anyone who can stop that ambition will be thrown out, whether by resignation, sack, or suspension.

The story of Warner’s resignation will be told one day. I can bet it will be another scandal.

Table Tennis – Egypt Arrives
AFTER decades of dominating table tennis in Africa, Nigeria’s hold started slipping with poor investment in the game. Egypt that once reigned is back at the helms. The current African ranking (men) has only three Nigerians in the top 10, in the third and fourth places. Egyptians have the two top places.

More challenges are from Cameroon and Congo where a former Nigerian international and coach Kasali Lasisi is turning that country into a continental power in the game. The All Africa Games in September will be another opportunity for the contenders to stake their control of the game.

Time is running out for the re-invention of Nigerian table tennis. Is anyone going to stop the decline?

By Ikeddy Isiguzo
Please email comments, condemnations, or commendations to ikeddyisiguzo@hotmail.com

Lakshmi Mittal sued by former friend over Nigerian oil deal

Britain's richest man is being sued for allegedly reneging on a multi-million dollar agreement to pay fees to a former friend for helping to secure an oil deal with a former Nigerian president.

Lakshmi Mittal, the steel tycoon who is one of Labour's most generous donors, has received a high court writ from the businessman Moni Varma.

Varma claims to have facilitated a deal in 2006 for Mittal to gain access to two unexplored oil fields in the Niger Delta after arranging a meeting with Olusegun Obasanjo, who was Nigeria's president.

Mittal has dismissed the claim, saying the case will be defended vigorously.

The case offers a rare glimpse into the business empire of Mittal, reportedly the world's sixth-richest man. It has also created ructions within the community of London's super-rich Indians in which both men once socialised.

Varma, 62, from Northwood, Middlesex, whose company Veetee Rice is one of Britain's biggest rice traders, said he had been let down by Mittal. "I am saddened but I have been left with no choice but to issue court proceedings against Lakshmi to recover sums that are due to me," he said.

Mittal, 61, whose wealth is estimated to be £17.5bn in this year's Rich List, has offered to pay $5m (£3.1m) but this has been rejected.

Since moving to Britain with his family in 1995, the "Steel Maharajah" – as Mittal is called – has become well known for his expensive tastes and his involvement in British public life. He has donated more than £5m to Labour and has imported marble from the quarry that was used for the Taj Mahal to decorate his £60m home.

The ArcelorMittal Orbit – 1,500 tonnes of steel twisted into a sculpture by the artist Anish Kapoor – will be Britain's largest piece of public art and will dominate the skyline at the Olympic Park in Stratford, east London.

But his success in business, and his ability to move seamlessly into unexplored industries, has remained a mystery.

The writ details how Varma and Mittal have known each other socially since 1997 and regularly discussed business opportunities at glittering social events in London.

Varma, who was born in India but educated in Malawi, has longstanding connections with Nigeria and had known Obasanjo since 2001 because he had exported rice to the African state, the documents claim.

In July 2005 Mittal Investments Sarl, a company owned by the defendant, launched a joint adventure with OVL, a subsidiary of ONGC India, India's leading oil and gas exploration company.

A month later Mittal and Varma met for dinner at Amaya, an Indian restaurant in Knightsbridge, and discussed possible deals in Nigeria, the writ claims. In September 2005, Varma claims, they held a conversation that is at the heart of the case. They discussed how much Varma would be paid if the deal came through, the writ claims. Varma claims Mittal said he could expect between 5% and 15% of the defendant's investment.

According to the writ Mittal responded "I will cover you" or "you will be covered ... The reward could be even bigger than 15%, depending on the size of the deal."

Varma claims that over the following six months he was cut out of the deal and could only watch as it was completed.

Mittal's joint venture with the Indian government was successful in its bids for two licences for 10 years in downstream projects in Nigeria. The anticipated combined yield of the "blocks", or areas of oil, was 650,000 barrels a day and the value of the downstream projects is $6bn.

Varma claims he continued to try to contact Mittal about the deal and when he could expect payback.

In March he managed to speak to Mittal, who offered $5m, the writ claims, but the offer was rejected. According to the writ, this offer was then denied in a subsequent letter from Mittal's solicitors Schillings, but Mittal has since said that he did discuss a possible payment of $5m, depending on the success of the projects.

Mittal's lawyers are expected to argue that Varma was a social acquaintance of their client, and that Varma offered to arrange a meeting with Obasanjo.

They also point out that neither block has yet produced any oil and that the costs have so far been $325m. The lawyers have also dismissed as fanciful Varma's claims of introducing Mittal to Nigeria.

A spokesman for Mittal's legal team said: "We are aware of the case, in relation to which we believe there are no grounds and which we intend to defend vigorously."

Obasanjo, who stepped down as president in 2007, has been accused in Nigeria of overseeing a series of poorly negotiated oil deals. A report by Chatham House two years ago criticised oil deals brokered by his government with Asian countries, claiming that they were short-termist and exploitative.

Mittal has previously been at the centre of political controversy. In May 2001 he gave £125,000 to the Labour party, shortly after which Tony Blair backed his bid for a Romanian firm, sparking the 2002 Steelgate row.

• Rajeev Syal
• guardian.co.uk,

Nigeria oil exports to rise to 5-1/2 yr high

LONDON (Reuters) - Nigerian oil exports are set to rise in August to the highest level in more than five and half years, a provisional loading programme based on trade estimates showed on Wednesday.

The August programme showed the African OPEC producer would load about 2.25 million barrels of crude oil per day.

If there is no disruption to output, the volume will mark the largest since January 2002, Reuters data based on the provisional loading programmes showed.

"It is a lot of Nigerian cargoes," a London-based crude oil trader said. "Spot premiums are falling and they will fall further.

The July provisional programme showed Nigerian export will average 2.06 million bpd in the month.

© Thomson Reuters 2011 All rights reserved

For Once A Legitimate Ghanaian Oil Company Success Story

After the recent announcement by Tullow oil about its agreement with EO Group, the only Ghanaian partners in the Jubilee oil field, Ghanaians are re-thinking the notion that the NDC Party is anti-business and bitterly vindictive of businessmen who are perceived to be aligned with their opposition parties.  The Mills administration, therefore, has a unique opportunity to not only win hearts within the business community by granting the needed consent of this transaction, but to also score valuable points in the area of political harmony that Ghanaians cherish. The transaction which is still subject to government’s approval is going to be the first of its kind and will vindicate the Ghanaian authorities about the false impression created by some as only being interested in the Chinese companies to invest in oil and gas assets in Ghana. Furthermore, it would render credible President Mills’ recent call on Ghanaian indigenes to participate in the emerging oil and gas industry.  Thus a government approval of this transaction should attract the praise that it deserves.Tullow Oil which is the operator of the Jubilee field also deserves recognition for taking unprecedented steps towards sharing its investment gains with Ghanaians by listing on the Ghana Stock Exchange and making the commitment to invest more in Ghana through the acquisition of EO Group’s interest.  It is clearly a positive indication of a company which has a long-term interest in the community within which it operates and demonstration of profound corporate responsibility, a culture that is in scarce supply among the International Oil Companies operating in Africa. Once the government has shown its sincerity, and Tullow Oil has shown its commitment to developing Ghanaian participation, it would be the turn of EO Group to set a worthy example by re-investing some of its dividend in the Ghana economy.  As the first Ghanaian major private stakeholder in the Jubilee Field, they have both the moral and business responsibilities to give back to the community. All told, experts estimate EO Group’s returns to be about $75- million dollars after paying expenses, liabilities and applicable taxes. To this end, it would be prudent on the part of the government to encourage them to re-invest a significant portion back into the Ghanaian economy. For a country known to go around the world with hat in hand, it would be a shame if this amount of local capital ends up in foreign banks.  Although, we have been reliably informed about EO Group’s intensions to re-invest in the community as part of their long held belief in boosting corporate Ghana, the government would still have to make sure they are encouraged to do so much in the same manner it encourages foreigners to invest in our country. If investments mean jobs, and Ghanaians need jobs, the government and the EO Group should both be looking at investing that level of capital locally. Some of the areas the EO Group is said to be interested in investing some of its returns are in the Science and Technology fields. The EO Group foresees significant Ghanaian equity ownership and skilled participation in businesses springing off from our emerging oil and gas industry. They are also said to be interested in making substantial investment in the health care sector, an area that one of the partners already has a long history of helping the community particularly in the rural areas. In spite of all the misinformation that has been peddled in the past about the EO Group, theirs is indeed a real life success story, and all Ghanaians should be encouraged by this recent development involving Tullow Oil and the Ghana government to get involved not only in oil and gas but all of the other sectors of the economy yet to get off the ground.  Consequently, this recent attempt by some in the government to cause commercial damage not only to the EO Group but to the rest of the nation by pursuing a very weak, old, and rehashed legal case is not in the interest of our country. Cooler heads must prevail to readjust the government’s stance on this issue

Source: Ghana Oil Watchdog

Nigerian Eurobonds Rise to Record on Growth Estimates, Reserve Increases

Nigeria’s dollar bonds climbed to a record on speculation that Africa’s most populous country will continue to experience growth as high oil prices, rising foreign reserves and recent elections spur investor confidence.

The 6.75 percent Eurobonds of Africa’s biggest oil producer due 2021 rose 0.1 percent to 104.981 cents on the dollar, the highest level since the debt was issued in January, lowering the yield two basis points, or 0.02 percentage point, to 6.056 percent as of 12:02 p.m. in London, according to data compiled by Bloomberg. The $500 million of bonds are Nigeria’s only international notes.

“There’s just not a lot of supply and with oil prices high and the election having gone better than expected,” investors “are looking for yield,” Rachel Ziemba, a senior analyst at Roubini Global Economics in London, said by phone.

Nigeria’s foreign reserves have climbed 3.8 percent this month to $33.3 billion as of June 20, according to data from the Central Bank of Nigeria in Abuja. Bonny Light oil has risen 18 percent this year. President Goodluck Jonathan, who was returned to power in April elections, rejected spending proposals by the legislature and slashed almost 500 billion naira ($3.2 billion) of spending plans adopted two months earlier in the final 4.5 trillion-naira budget passed May 25.

“The high oil price bodes well for Nigeria’s petroleum industry,” Renaissance Capital analysts, led by London-based Charles Robertson, wrote in a research report today. The smaller budget “implies that spending, particularly on imports, will slow and pressure on reserves will ease.”

The West African nation’s economic growth will rise to 7.8 percent in 2012, compared with 7.6 percent this year, according to Renaissance Capital estimates.

Nigeria Special: Modern Highlife Afro-Sounds 

To contact the reporter on this story: Chris Kay in London at ckay5@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net