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Escalating kidnapping threats highlight investment risks in northern Nigeria

On February 27, 2013,

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Escalating kidnapping threats highlight investment risks in northern Nigeria

Escalating kidnapping threats highlight investment risks in northern Nigeria

By Rebecca Craig

The kidnap of seven foreign workers in northern Nigeria on 17 February 2013 is indicative of a significant shift in the dynamics of kidnapping risks in the country. Islamist terrorist groups operating in the north – most notably Boko Haram – have traditionally targeted local political and religious leaders, as well as members of the security forces, rather foreigners. However, the incident on 17 February, which terrorist group Jama’atu Muslimina Fi Biladis Sudan (known as Ansaru) has claimed responsibility for, was apparently carried out in response to the actions of Western forces in Mali and Afghanistan. Although independent of Boko Haram, Ansaru is thought to have ties to the increasingly prominent extremist group. Furthermore, in a departure from Boko Haram, Ansaru appears to focus less on domestic political goals and more on global jihad, indicating the potential transnational threat posed by the group.

The seven foreign victims are thought to be nationals of Lebanon, Greece, Italy and the UK, and include two women. They are employed by Setraco, a Lebanese construction company, and were kidnapped from a compound near Jama’are, in Bauchi state, approximately 300km north of the capital Abuja. In the past, the risk to expatriate workers from kidnapping has predominantly been in the restive but oil-rich Niger Delta region. However, with stability in the Niger Delta improving – albeit from a low baseline – since an amnesty was introduced in 2009, and as Boko Haram has become increasing militant since 2009, the threat of violence and kidnappings has shifted from the Niger Delta to the Middle Belt and northern states. (more…)


If you would like to comment on this article, request further in-depth analysis, or contact the analyst for media comment please contact: blog@maplecroft.com

in Conflict, Corruption, Issues, Middle East and North Africa, Reputational risk, by Jason McGeown
Tagged with: Abuja • al-Qaeda • Boko Haram • Cameroon • Mali • Niger • Niger Delta • Nigeria
 

Why piracy is increasing in the Gulf of Guinea

On February 17, 2012,

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Piracy in the Gulf of Guinea. Dots show incidents, blue lines show key shipping routes. Click for a full size map.

A spate of pirate attacks on ships in the Gulf of Guinea has raised fears that the west coast of Africa may be becoming a new haven for piracy, even as the international community struggles to contain the pirate threat in Somalia. Underscoring this new pirate threat, on Monday two crewmen on a oil tanker were killed after their ship was boarded by pirates off Nigeria.

It was recently estimated that the total annual cost of Somali piracy was $7-10 billion. Maplecroft looks behind these troubling events to explain why piracy in the Gulf of Guinea region is increasing.

What’s changed in the last year?

  • Attacks have increasingly spread across a broader region and further out to sea, although many incidents continue to occur near ports. Although it is difficult to identify a single cause of the upward trend in incidents, ongoing tensions related to the 2009 Niger Delta Amnesty and higher prices for oil on global markets over the past year are likely to be factors. Higher oil prices on the domestic market following a reduction in subsidies in January 2012 may also prove an added incentive to target oil cargoes. (more…)

If you would like to comment on this article, request further in-depth analysis, or contact the analyst for media comment please contact: blog@maplecroft.com

in Emerging markets, Mapping, Oil and gas, Political risk, Sub-Saharan Africa, Transportation and logistics, Uncategorized, by Jason McGeown
Tagged with: Africa • Benin • Boko Haram • Congo • Gulf of Guinea • Niger Delta • Nigeria • Piracy • Piracy in the Gulf of Guinea • pirates • Somalia
 

Rising violence in Nigeria and its consequences for business

On January 11, 2012,

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On Christmas Day 2011, a co-ordinated series of attacks  on churches in Nigeria by Boko Haram, a local Islamist terrorist group, awoke the world to the growing threat of sectarian violence in the oil-rich, west African country.

Political violence in Nigeria is, of course, nothing new. During the mid-2000′s violence in the Niger Delta posed a serious threat to oil firms in southern Nigeria. Similarly sporadic religious violence in the  town of Jos in 2009-2011 threatened to badly de-stabilise the country’s central regions.

However, the recent attacks on churches throughout central and northern Nigeria, carried out by a group that is clearly influenced by al-Qaeda’s ideology, are being seen as a dangerous and unprecedented attempt to deliberately stoke religious tensions in the country that is almost evenly divided between Muslims and non-Muslims.

As Maplecroft’s latest analysis in today’s Global Risks Forecast makes clear, this new trend potentially has serious consequences both for Nigeria and for business working there. (more…)


If you would like to comment on this article, request further in-depth analysis, or contact the analyst for media comment please contact: blog@maplecroft.com

in Agri-business, Chemicals, manufacturing and retail, Construction, Corruption, Economics, Emerging markets, Financial services, Healthcare, Human rights, ICT and engineering, Issues, Mining, Oil and gas, Political risk, Sub-Saharan Africa, Transportation and logistics, by Jason McGeown
Tagged with: Africa • al-Qaeda • Boko Haram • Global Risks Forecast • Lagos • Niger Delta • Nigeria • Subsidy
 
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