Nigeria has problems in its prime oilfields.

Nigeria is the world's eighth-largest oil exporter, the fifth-biggest supplier of oil to the U.S., and long Africa's dominant oil player. Its oil is classified as "light and sweet," which makes it easy to refine into gasoline. Its government has earned hundreds of billions of dollars since oil exports began in 1958.

Nearly all of Nigeria's oil comes from the Niger Delta, one of the world's largest wetlands. Yet few of the Delta's inhabitants have benefited. Most have no running water or electricity. Roads in the region, where they exist at all, are often impassable.  Schools are understaffed, under funded and overcrowded. Good jobs are rare.

Militant leaders such as Mr. Tom have been active in the area for years. They claim to be fighting to improve living conditions, but many observers brand them as mere criminals, their allegiances less to the community than to politicians who provide them cash and arms. They have received big payoffs from politicians and oil companies alike, and reap additional windfalls by stealing Oil from pipelines, according to oil company executives and human-rights groups.

Nigeria depends on oil for more than 90% of its export revenue and more than 80% of its government revenue. This year, attacks on oil installations have reduced the nation's output to about 1.7 million barrels a day, from about 2.6 million in 2005, Government figures indicate. Some experts believe the actual figure is much lower. The attacks nearly halted onshore production in the western Niger Delta by oil giants Royal Dutch Shell and Chevron Corp. Chevron says it has since restored operations; Shell is working on doing so.

Under the amnesty offer, militants who turn in their weapons will get a few hundred dollars a month and job training. The Government says it expects at least 10,000 militants to take advantage of the offer. So far, most of the prominent militant leaders have stayed in the creeks. Many experts believe the plan ultimately will fail because it doesn't address the poverty and political corruption that ignited the militancy.

Africa News article quoted here.