America's links to Nigeria are important. According to the Washington-based Energy Information Administration, Nigeria is the fifth-largest oil supplier to the United States.

"Nigeria is at a crossroads," Clinton said in The New York Times Aug. 12.

According to a news report by the British Guardian newspaper Aug. 13, Clinton told an audience of civil activists in Nigeria's capital Abuja that the country's election system was flawed and "lack of transparency and accountability has eroded the legitimacy of the government and contributed to the rise of groups that embrace violence and reject the authority of the state."

"We strongly support and encourage the government of Nigeria's efforts to increase transparency, reduce corruption, and provide support for democratic processes in preparation for the 2011 elections," Clinton said at a talk with Nigerian Foreign Minister Ojo Maduekwe Aug. 12, according to the Web site of the U.S. State Department.

According to the Berlin-based international non-governmental organization Transparency International, Nigeria is one of the most corrupt countries in the world.

For example, the flow of oil is regularly shut down in Nigeria due to pipeline attacks.

The Wall Street Journal reported Aug. 11 that a natural gas pipeline serving a plant operated by Royal Dutch Shell PLC was attacked by locals in the Niger Delta.

Nigeria has lost around $47 billion in revenue from oil company Shell since 2006 due to output cuts caused by rebel attacks, according to an online news report by Ghana Business News July 29.

Nigerian President Umaru Yar'Adua came to office in 2007. However, the election was condemned as flawed by local and international observers.

According to a report by the Carnegie Endowment for International Peace released in June, Nigeria's dependence on oil accounting for 90 percent of exports and three-fourths of government revenues exposed the country to the global financial crisis, as oil prices dropped significantly.

Violence in the oil-producing Niger Delta region added additional problems by slowing the country's oil production down, leading to losses of about $25 million a day in the last two weeks of May, it says in the report done by the Carnegie Endowment for International Peace.

The Washington-based think tank expects that oil revenues will drop sharply from 21 percent of GDP in 2008 to 12.4 percent in 2009.

Clinton said in The New York Times Aug. 12 that the Nigerian defense minister asked her on Wednesday for American military help to fight the remaining rebels in the oil-producing areas. The American government would look closely at the request, Clinton said, according to The New York Times.

earlier related report
Madagascar armed forces reject clause in peace deal
Madagascar's armed forces, which played a key role in the eviction in March of president Marc Ravalomanana, on Friday "categorically rejected" one clause in a peace deal negotiated in Mozambique.

In a statement signed by the armed forces minister, Colonel Noel Rakotonandrasana, and by the chiefs of staff of the army and the paramilitary gendarmerie force, the soldiers "categorically rejected (a provision) for the creation of a think tank on defence and national security (CRDSN)."

The peace deal signed in Maputo by Madagascar's rival leaders had provided for this "reflection committee", which would include two members from each of the political movements who have agreed on a transitional government.

But the statement signed by the military warned that such a think tank would "run contrary to regulations ... providing for the depoliticisation of the armed forces" promised by the transitional regime, led by Andry Rajoelina.

"All objections likely to raise dissent in the armed forces will no longer be tolerated," Friday's statement said, adding that undefined "appropriate measures" had been prepared in response.

The military hierarchy nevertheless said it had "full confidence that the Maputo accords will lead the country to political serenity, social peace and an economic recovery."

Rajoelina took power after weeks of street demonstrations and winning the support of the army, which led to the departure of Ravalomanana in March. But the international community does not recognise his regime and for months put pressure on all the Madagascan parties to negotiate.

The leaders of the island's four main political groups, including former presidents Albert Zafy and Didier Ratsiraka, agreed to set up an interim government and hold elections by the end of next year.

The marathon talks in Mozambique cleared key points of amnesty for Ravalomanana, the structure of a unity transition government, a constitutional referendum, and legislative and presidential elections within 15 months.

But the issue of who will lead the power-sharing government to steer the transition -- headed by a president, vice president, prime minister and three deputy prime ministers -- will await further talks.

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