Nigeria VP chairs first cabinet as acting leader

ABUJA (Reuters) - Nigerian Vice President Goodluck Jonathan chaired his first cabinet meeting as acting head of state on Wednesday, seeking to revive government business after more than two months of stagnation.

Jonathan assumed full presidential powers late on Tuesday to fill a power vacuum left by the absence of President Umaru Yar'Adua, who has been in hospital in Saudi Arabia since late November receiving treatment for a heart condition.

Parliament recognised Jonathan as acting head of state hours before he announced the takeover and Justice Minister Michael Aondoakaa said he had the government's support. But the move has no precedent and is not explicitly backed by the constitution.

"It's good news and bad news. It's good news that they finally made a decision. It's pretty clear there is political drift if a president is outside a country for 2-1/2 months," said Richard Segal, analyst at Knight Libertas in London.

"The bad news is it's not clear if this is constitutional or not. Any document he signs could be subject to legal challenge."

Although Jonathan's empowerment means he can sign laws and act as commander-in-chief, alleviating immediate concerns about paralysis in government, political uncertainty is likely to continue as rival factions in the ruling party jockey for position ahead of elections due early next year.

But if he achieves nothing else, investors hope Jonathan can maintain relative stability in the Niger Delta, the restive heartland of the OPEC member's mainstay oil industry, despite the turmoil surrounding the country's highest office.

Yar'Adua last year spearheaded the most comprehensive effort yet to end the unrest, an amnesty which saw thousands of gunmen lay down weapons in return for clemency and the promise of jobs.

His absence has slowed the programme's implementation and Jonathan pledged to make the region a priority.

MILITANTS WATCHING

The Movement for the Emancipation of the Niger Delta, the main group behind years of attacks on oil facilities, said in an email to Reuters it was monitoring developments but declined to say whether it would reinstate a cease-fire.

The militant group last month called off a three-month old truce and threatened to unleash an "all-out onslaught" against Africa's biggest oil and gas industry saying it could no longer trust the government.

"For the oil industry, the most important immediate impact that might be hoped for is that the security situation in the delta, which has been showing signs of fraying, is stabilised," oil analysts at ICAP equity research said in a note.

Years of militant attacks have prevented Nigeria from pumping much above 2 million barrels of oil per day, two thirds of its installed capacity, costing it around $1 billion a month in lost revenue.

Akinaka Richard, a Niger Delta activist who sits on a government committee responsible for implementing the amnesty, said Yar'Adua's absence had meant there had been no agreement on the budget for part of the programme, causing it to stall.

He said his committee was due to meet with Jonathan within the week to agree the budget framework.

"The absence of a driving force behind the amnesty programme really affected the pace of our work but with Goodluck Jonathan as acting president now on board, the whole process will be fast-tracked," he said.

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