FACTBOX-Key issues facing Nigeria as Clinton visits
Aug 11 (Reuters) - U.S. Secretary of State Hillary Clinton visits Nigeria's capital Abuja on Wednesday as part of a seven-nation, 11-day trip to Africa.
Following are details of some of the issues Clinton is expected to discuss with Nigerian President Umaru Yar'Adua and government officials during the visit.
CORRUPTION
Analysts say Nigeria's fight against corruption has faltered under President Umaru Yar'Adua.
Nuhu Ribadu, a former anti-corruption chief who won international respect with arrests and seizures, was removed from his post months after Yar'Adua took office in May 2007 and sent on a one-year training course at a remote institute.
Ribadu, who was seen as a key figure by foreign powers including the United States, was chasing graft cases against powerful former governors from some of Nigeria's 36 states.
He has since fled the country after what he said was an assassination attempt.
Corruption in Nigeria has imperilled development, deterred investment, undermined democracy and deepened conflicts such as the insurgency in the oil-producing Niger Delta. The country regularly ranks near the bottom of global transparency surveys.
ELECTORAL REFORMS
An electoral reform bill, meant to ensure Nigeria avoids a repeat of flawed polls two years ago at its next nationwide elections in 2011, is currently before parliament but many key recommendations have not been included.
An electoral committee appointed by Yar'Adua recommended measures including independent funding for the INEC electoral commission, breaking it up so it can better focus on electoral conduct, and prosecution for election riggers.
But plans to remove the president's right to choose the INEC chairman and to ensure that all electoral petitions be settled within six months of polls were not included.
Critics say that removes the teeth from the reforms, giving no guarantee of INEC independence and risking another prolonged period of political paralysis while legal disputes are settled.
Watchdog groups and diplomats say some of the reforms would mean amending Nigeria's electoral act and parts of its constitution, likely to take months or years and unlikely to be completed before the 2011 election.
That raises the possibility of a repeat of shambolic polls in April 2007, which were so marred by ballot-stuffing and voter intimidation that local and foreign observers said they were not credible. The legal challenges dragged on for almost two years.
OIL REFORMS
Also before parliament is a Petroleum Industry Bill meant to restructure the state-run Nigerian National Petroleum Corporation (NNPC) into a profit-driven firm like those in Brazil, Malaysia and Saudi Arabia.
The far-reaching bill has been promoted by the presidency as the answer to problems including funding shortfalls which have hamstrung joint ventures with foreign firms, domestic gas shortages and budget-debilitating fuel subsidies.
But in its present form, the legislation could allow the government to renegotiate existing contracts, imposing higher taxes and royalties on foreign oil firms and retaking acreage that they have yet to explore.
Foreign firms like U.S. giants ExxonMobil (XOM.N) and Chevron (CVX.N) fear the legislation will make new projects in Africa's biggest energy exporter uneconomical.
Oil Minister Rilwanu Lukman told Reuters on Tuesday it was too late for government to amend the bill and that the industry would have to lobby parliament if it wanted changes.
NIGER DELTA
A 60-day amnesty period for gunmen in the oil-producing Niger Delta began last week but key militant factions are divided over whether to take part and sceptics expect the scheme will bring only a temporary lull in the violence.
Yar'Adua offered an unconditional pardon in June to all militants who take part in the amnesty, the most comprehensive bid yet to stem unrest which has prevented Nigeria from pumping much above two-thirds of its 3 million bpd capacity.
Washington is likely to be looking for assurances that long-term programmes are in place to ensure the reintegration and employment of those who agree to hand over their weapons.
A previous attempt at disarmament under Yar'Adua's predecessor broke down as factions argued over the money paid for their arms.
REGIONAL SECURITY
Nigeria has in the past been a regular contributor of troops to peacekeeping forces around Africa, including in Sudan's Darfur region, Sierra Leone and Liberia.
It said earlier this year it was still assessing whether to send peacekeepers to Somalia because the situation had deteriorated since it first agreed to do so. [ID:nLK312159]
Speaking in Kenya earlier in her Africa trip, Clinton pledged strong support for Somalia's fragile government after holding talks with Somali President Sheikh Sharif Ahmed. [ID:nL6095551]
Yar'Adua currently holds the rotating chairmanship of the Economic Community of West African States (ECOWAS) and regional security is also expected to be on the agenda.
A string of elections in West Africa this year have passed peacefully, but most have been backward steps for democracy with the potential to incite further power grabs. [ID:nLB693654]
(For more Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com/ ) (Writing by Nick Tattersall; editing by Andrew Roche)
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