o one doubts the enormity of the task facing the new Nigerian administration as it seeks to rebuild the frail economy it inherited from the military regimes of the past, but there is hope.

People on the streets of Lagos, the country’s main commercial center, and Abuja, the federal capital, now believe that there is a chance to move on. Little wonder there were big parties held after the election results were announced in April this year. President Olusegun Obasanjo described it as a great day in the history of the nation, a crucial step in the long political journey towards sustainable democracy and true economic development.

With a GDP per capita of less than $840 – compared with $36,300 in the U.S. (2001 estimates) – there is still a long way to go. Part of the challenge facing the government is to get all Nigerians committed to the same goals. A major test will be to unite the various strands of society.

The President says that he intends to use his new four-year mandate to provide leadership for all Nigerians, regardless of their political persuasions. This would have been unthinkable less than a decade ago. “We will confidently advance toward our vision. Our vision of a united Nigeria. A strong Nigeria,” he says.

There is a solid platform to build on. The oil and gas sector, which accounts for the majority of the country’s exports, is growing strongly, with crude output expected to top three million barrels per day soon. Overseas investment in new oil production facilities, exploration work, and gas-based projects continues to pour in, while reserves pile up. U.S. firms have played an important role in rejuvenating the energy sector, with interests spanning upstream and downstream activities.

The business climate has changed for the better. In the last four years, President Obasanjo and his pro-business team have made huge efforts to overhaul the economy, liberalizing inefficient public industries and privatizing state companies.
The licensing of two GSM mobile phone operators, South African firms Econet and MTN, following the liberalization of the telecommunications sector, has led to a boom in demand for services opening lines of communication to remote parts of the country.

It highlights the enormous potential of this vast and largely untapped market.
Attention has also been focused on the revitalization of the electricity network, with the restructuring of the Nigerian Electric Power Authority (Nepa), and in areas such as water and transport. There are serious moves to combat red tape, corruption and other obstacles to doing business.

President George W. Bush made his first visit to Nigeria in July as a show of commitment to the country and its burgeoning relationship with America. Following widespread political changes in Africa, President Bush is optimistic about the future of the continent. He says Nigeria’s progress will be vital in the development of the west African sub-region.

There are opportunities for American companies to play an ongoing part in the revival process. President Obasanjo is eager to diversify the economy away from oil, into new areas such as manufacturing, agriculture and processing.