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Nigeria: Militancy is Devastating for Oil Production

Nigeria remains one of Africa’s largest oil producers, but for the past six months, it has been surpassed by the continent’s other major producer, Angola. Insecurity in the Niger Delta is largely to blame. The Cipher Brief’s Kaitlin Lavinder spoke with Director of the CSIS Africa Program Jennifer Cooke about Nigeria’s oil conundrum and why an unstable and economically unhealthy Nigeria is not in U.S. interests.

The Cipher Brief: How powerful is the state-owned Nigerian National Petroleum Corporation (NNPC)? How much of the market share does it control?

Jennifer Cooke: The Nigerian National Petroleum Corporation is extremely powerful within the oil sector. Every foreign partner that invests in Nigeria’s oil sector must enter into a joint venture with the NNPC, and it also sets regulations for the sector. It’s a very important player, a very big player, and a very opaque player within Nigeria’s energy sector.

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