Bilateral relations between Nigeria and the United States could be at risk if Washington keeps its requirement for tighter security Nigerian travellers, minister of Information, Prof Dora Akunyili said last Wednesday.

Minister of External Affairs, Chief Ojo Maduekwe confirmed a day earlier that the United States has placed Nigeria on its 'watch list of terror nations and the procedures, took effect from Monday.

This is coming in the wake of a botched Christmas Day bombing attempt on a U.S. airliner blamed on 23 years old former London student Umar Farouk Abdulmutallab of Nigeria.

Minister of Information Prof. Dora Akunyili said: "Nigeria expresses its disappointment and concern of the undeserved placement of our country on the interest list and views this action as having the potential of undermining longstanding and established U.S.-Nigeria bilateral ties."

She did not elaborate on what could be at risk.

But the United States is by far Nigeria's largest trade partner, accounting for nearly 45 percent of the nation's exports, mainly crude oil, according to the International Monetary Fund (IMF).

Nigeria's light crude grades are especially popular in the United States and Europe because they are easily refined into fuel products.

Minister of External Affairs, Chief Ojo Maduekwe met with U.S. ambassador Robin Sanders last Tuesday to formally request that Washington reconsiders its decision to include the country in its air security watch list.

The U.S. list includes passengers traveling from or through nations listed as "state sponsors of terrorism" -- Cuba, Iran, Sudan and Syria -- as well as Afghanistan, Algeria, Iraq, Lebanon, Libya, Pakistan, Saudi Arabia, Somalia and Yemen.

Abdulmutallab, has been charged with trying to blow up Northwest Airlines flight 253 as it approached Detroit from Amsterdam on December 25 with almost 300 people on board. He transferred to that flight from a KLM flight from Lagos.

Nigeria's relationship with the United States dates back to the 1960's when the country got her independence from the former colonial masters, United Kingdom, but the relations went sour with the nullification of the June 12, 1993, presidential election, and in the light of human rights abuses and the failure to embark on a meaningful democratic transition, the United States imposed numerous sanctions on Nigeria.

After a period of increasingly strained relations, the death of General Abacha in June 1998 and his replacement by General Abubakar opened a new phase of improved bilateral relations. As the transition to democracy progressed, the removal of visa restrictions, increased high-level visits of U.S. officials, discussions of future assistance, and the granting of a Vital National Interest Certification on counter-narcotics, effective in March, 1999, paved the way for re-establishment of closer ties between the United States and Nigeria as a key partner in the region and the continent.

Since the inauguration of the Obasanjo government, the bilateral relationship has continued to improve, and cooperation on many important foreign policy goals, such as regional peacekeeping, has been excellent.

The government has lent strong diplomatic support to U.S. Government have been very supportive of the US Government's counter-terrorism efforts in the aftermath of the September 11, 2001 terrorist attacks. The Government of Nigeria, in its official statements, has both condemned the terrorist attacks and supported military action against the Taliban and Al Qaida.

Nigeria also has played a leading role in forging an anti-terrorism consensus among states in Sub-Saharan Africa. An estimated one million Nigerians and Nigerian Americans live, study, and work in the United States, while over 25,000 Americans live and work in Nigeria. President Yar'Adua visited President Bush at the White House on December 13, 2007.

Nigeria is the United States' largest trading partner in sub-Saharan Africa, largely due to the high level of petroleum imports from Nigeria, which supply 8 percent of U.S. oil imports--nearly half of Nigeria's daily oil production. Nigeria is the fifth-largest exporter of oil to the United States. Two-way trade in 2008 was valued at more than $42 billion, an 18 percent increase over 2007 data. Led by machinery, wheat, and motor vehicles, U.S. goods exports to Nigeria in 2008 were worth more than $4 billion. In 2008, U.S. imports from Nigeria were over $38 billion, consisting predominantly of oil.

However, rubber products, cocoa, gum arabic, cashews, coffee, and ginger constituted over $70 million of U.S. imports from Nigeria in 2007. The U.S. trade deficit with Nigeria was $21 billion in 2007. Nigeria is the 50th-largest export market for U.S. goods and the 14th-largest exporter of goods to the United States. The United States is Nigeria's largest trading partner after the United Kingdom.

Although the trade balance overwhelmingly favors Nigeria, thanks to oil exports, a large portion of U.S. exports to Nigeria is believed to enter the country outside of the Nigerian Government's official statistics, due to importers seeking to avoid Nigeria's excessive tariffs.

The United States is the largest foreign investor in Nigeria. The stock of U.S. foreign direct investment (FDI) in Nigeria in 2006 was $339 million, down from $2 billion in 2004. U.S. FDI in Nigeria is concentrated largely in the petroleum/mining and wholesale trade sectors. Exxon-Mobil and Chevron are the two largest U.S. corporate players in offshore oil and gas production.

In March 2009, the United States and Nigeria met under the existing Trade and Investment Framework Agreement (TIFA) to advance the ongoing work programme and to discuss improvements in Nigerian trade policies and market access. Among the topics discussed were cooperation in the World Trade Organization (WTO), market access, export diversification, intellectual property protection and enforcement, commercial issues, trade capacity building and technical assistance, infrastructure, and investment issues.

The oil boom of the 1970s led Nigeria to neglect its strong agricultural and light manufacturing bases in favour of an unhealthy dependence on crude oil. In 2002 oil and gas exports accounted for more than 98 percent of export earnings and about 83 percent of federal government revenue. New oil wealth, the concurrent decline of other economic sectors, and a lurch toward a statist economic model fueled massive migration to the cities and led to increasingly widespread poverty, especially in rural areas.

A collapse of basic infrastructure and social services since the early 1980s accompanied this trend. By 2002 Nigeria's per capita income had plunged to about one-quarter of its mid-1970s high, below the level at independence. Along with the endemic malaise of Nigeria's non-oil sectors, the economy continues to witness massive growth of "informal sector" economic activities, estimated by some to be as high as 75 percent of the total economy.

Arguably Nigeria's biggest macroeconomic achievement has been the sharp reduction in its external debt, which declined from 36 percent of GDP in 2004 to less than 4 percent of GDP in 2007. In October 2005, IMF approved its first ever Policy Support Instrument for Nigeria. In December 2005, the United States and seven other Paris Club nations signed debt reduction agreements with Nigeria for $18 billion in debt reduction, with the proviso that Nigeria pays back its remaining $12 billion in debt by March 2006. The United States was one of the smaller creditors, and received about $356 million from Nigeria in return for over $600 million of debt reduction. Merrill Lynch won the right to take on $509 million of Nigeria's promissory debt (accrued since 1984) to the "London Club" of private creditors.

This arrangement saved Nigeria about $34 million over a simple prepayment of the notes. Nigeria faces intense pressure to accept multibillion dollar loans for railroads, power plants, roads, and other infrastructure. Expanded government spending also has led to upward pressure on consumer prices. However, the recent drop in world oil prices and the global financial crisis have prompted the federal government to tap its foreign exchange reserves, which consequently have decreased from $60 billion to $42.5 billion, in order to meet pressing budget demands from cash-strapped state and local governmental bodies.

Nigeria is not on track to meet its Millennium Development Goals because of a lack of policy coordination between the federal, state, and local governments, a lack of funding commitments at the state and local levels; and a lack of available staff to implement and monitor projects on health, poverty, and education.

Although Nigeria must grapple with its decaying infrastructure and a poor regulatory environment, the country possesses many positive attributes for carefully targeted investment and will expand as both a regional and international market player. Profitable niche markets outside the energy sector, such as specialized telecommunication providers, have developed under the government's reform programme. There is a growing Nigerian consensus that foreign investment is essential to realizing Nigeria's vast potential.

Companies interested in long-term investment and joint ventures, especially those that use locally available raw materials, will find opportunities in the large national market. However, to improve prospects for success, potential investors must educate themselves extensively on local conditions and business practices, establish a local presence, and choose their partners carefully. The Nigerian Government is keenly aware that sustaining democratic principles, enhancing security for life and property, and rebuilding and maintaining infrastructure are necessary for the country to attract foreign investment.

portion of U.S. exports to Nigeria is believed to enter the country outside of the federal government official statistics, due to importers seeking to avoid customs duties and other levies

The United States is the largest foreign investor in Nigeria. The stock of U.S. foreign direct investment (FDI) in Nigeria in 2006 was $339 million, down from $2 billion in 2004. U.S. FDI in Nigeria is concentrated largely in the petroleum/mining and wholesale trade sectors. Exxon-Mobil and Chevron are the two largest U.S. corporate players in offshore oil and gas production.

In March 2009, the United States and Nigeria met under the existing Trade and Investment Framework Agreement (TIFA) to advance the ongoing work programme and to discuss improvements in Nigerian trade policies and market access. Among the topics discussed were cooperation in the World Trade Organisation (WTO), market access, export diversification, intellectual property protection and enforcement, commercial issues, trade capacity building and technical assistance, infrastructure, and investment issues.

The oil boom of the 1970s led government authorities to neglect the nation's strong agricultural and light manufacturing bases in favour of an unhealthy dependence on crude oil. In 2002 oil and gas exports accounted for more than 98 percent of export earnings and about 83 percent of federal government revenue.

New oil wealth, the concurrent decline of other economic sectors, and a lurch toward a statist economic model fueled massive migration to the cities and led to increasingly widespread poverty, especially in the rural areas. A collapse of basic infrastructure and social services since the early 1980s accompanied this trend. By 2002 the nation's per capita income had plunged to about one-quarter of its mid-1970s high, below the level at independence. Along with the endemic malaise of Nigeria's non-oil sectors, the economy continues to witness massive growth of "informal sector" economic activities, estimated by some to be as high as 75 percent of the total economy.

Arguably the nation's biggest macroeconomic achievement has been the sharp reduction in its external debt, which declined from 36 percent of GDP in 2004 to less than four percent of GDP in 2007. In October 2005, IMF approved its first ever Policy Support Instrument for Nigeria. In December 2005, the United States and seven other Paris Club nations signed debt reduction agreements with Nigeria for $18 billion in debt reduction, with the proviso that Nigeria pays back its remaining $12 billion in debt by March 2006.

The United States was one of the smaller creditors, and received about $356 million from Nigeria in return for over $600 million of debt reduction. Merrill Lynch won the right to take on $509 million of Nigeria's promissory debt (accrued since 1984) to the "London Club" of private creditors. This arrangement saved the country about $34 million over a simple prepayment of the notes.

Nigeria faces intense pressure to accept multibillion dollar loans for railroads, power plants, roads, and other infrastructure. Expanded government spending also has led to upward pressure on consumer prices. However, the recent drop in world oil prices and the global financial crisis have prompted the federal government to tap its foreign exchange reserves, which consequently have decreased from $60 billion to $42.5 billion, in order to meet pressing budget demands from cash-strapped state and local governmental bodies.

Nigeria is not on track to meet its Millennium Development Goals because of a lack of policy coordination between the federal, state, and local governments, a lack of funding commitments at the state and local levels; and a lack of available staff to implement and monitor projects on health, poverty, and education.

Although Nigeria must grapple with its decaying infrastructure and a poor regulatory environment, the country possesses many positive attributes for carefully targeted investment and will expand as both a regional and international market player. Profitable niche markets outside the energy sector, such as specialized telecommunication providers, have developed under the government's reform programme. There is a growing Nigerian consensus that foreign investment is essential to realizing the nation's vast potential.

Companies interested in long-term investment and joint ventures, especially those that use locally available raw materials, will find opportunities in the large national market. However, to improve prospects for success, potential investors must educate themselves extensively on local conditions and business practices, establish a local presence, and choose their partners carefully.

The federal government is aware that sustaining democratic principles, enhancing security for life and property, and rebuilding and maintaining infrastructure are necessary for the country to attract foreign investment it is against this backdrop that it has every cause to worry over the recent move by the US government to label the country a terrorist nation.

This is area as, there are indications that the U.S. government had enough information about Abdulmutallab and an al Qaeda's cell in Yemen to potentially disrupt their alleged plot to blow up a passenger jet on Christmas Day, a White House review found.

U.S. spy agencies and the State Department knew about the accused bomber, Umar Farouk Abdulmutallab, and the growing threat posed by al Qaeda in the Arabian Peninsula, in the months before the attempted December 25 bombing

About four months before the attempted bombing on December 25, the NSA intercepted telephone conversations in which the leaders of al Qaeda in the Arabian Peninsula talked about the possibility of using an unidentified "Nigerian" bomber in an attack, according to intelligence officials. John Brennan, President Barack Obama's top White House adviser on counterterrorism, said the intercepts were shared with the National Counterterrorism Center.

With all these information at its disposal, coupled with the action of the Father of the young man, America failed to do the right thing, nip the terror act in the bud. Rather than swallow its pride and accept all the blame, chose to label Nigeria and embarrass its citizens at the airports.

Nobel Laureate, Prof Wole Soyinka, among many others that have reacted to the action of the United States said goes beyond mere precautionary measures against the isolated act of a youngster that was recruited into al Qaeda in the United Kingdom trained in Yemen and given instructions on his target in Yemen and started his journey from Ghana changed planes in Nigeria stopped over in Amsterdam.