Civil war has hurt but failed to shatter the economy of Nigeria. In fact, if fighting ended soon, the recovery might be dramatic. The war has cut the production of oil, frightened away foreign investment, disrupted trade within the country, and reduced holdings of foreign exchange to a dangerous level. But the basic structure of the economy is undamaged. While oil wells, for example, lie dormant, they still are there and could be reactivated quickly. Moreover, despite the war, agricultural crops have done fairly well, and agriculture is the dynamic of the economy, accounting for 60% of the gross domestic product and half the foreign exchange. Little is known about the economy of Biafra, the old eastern region that seceded last May 30. But economists in Lagos believe that, because of the federal blockade of its ports, Biafra has suffered far more than the rest of Nigeria. Oil has been the first victim of the civil war...

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