Text A - Overview of Nigeria With a population of 173 million people, Nigeria is the most populated country in Africa and O accounts for 47 % of West Africa's population. It is the biggest oil exporter in Africa and also has the largest natural gas reserves in the continent. Economic growth is estimated to have been 6.1% in 2014, owing to continued strong performance mainly in services, but also industry (apart from oil mining) and agriculture. The oil and gas sector was in decline, although at a slower rate than in the previous year. Revenues from oil and gas were estimated to have declined by 1.3%, relative to a decline of 13.1% in 2013. The sharp decline in oil prices since the third quarter of 2014 has posed major challenges to the country's current account balance and public finances. Oil contributes close to 90% of export revenues and roughly 75% of the country's total budget revenues. Lower oil prices will continue to pose strong challenges for public finance at all levels of government during the year and will also represent a major constraint on the ability of the new government to introduce some of its ambitious programs. It is focusing on anti-corruption, the economy, including jobs and unemployment, and security. In the North East of Nigeria, Boko Haram, an extremist group, remains a threat. Millions of displaced persons require assistance. There has been major destruction of infrastructure, loss of lives and increased poverty in this region. The government will have a difficult time financing the major programs that it wants to introduce, as well as reconstructing the North East devastated by the activities of the violent extremists. The major medium-term challenge for the government is to accelerate the creation of productive jobs through private sector growth and to make improvements in education (skills). So far, the pace of job creation has been inadequate, leading to increasing frustration among underemployed Nigerian youth. Text B - Oil spills in Nigeria In January 2015, Royal Dutch Shell, a multinational oil company, finally agreed to pay more than US$83 million to residents of a Nigerian fishing community that was devastated by two oil spills in 2008. This was the largest ever compensation related to an oil spill in Nigeria, a country plagued by oil-related market failure. 2 Over 15 000 residents in the town of Bodo will each receive about US$3 250, adding up to approximately US$53 million. The remaining money will go into a community fund for health clinics, education centers and other projects. In 2006, the Nigerian government asked the United Nations Environment Programme to study the extent of delta oil pollution. In its report, published in 2011, the agency recommended that the government establish a fund with an initial investment of US$1 billion. The Nigerian government and the oil industry should finance the fund, the agency said. (This question continues on the following page)