Chad–Nigeria relations in the late 1970s, clashes occurred around Lake Chad, where both countries hoped to exploit oil reserves. Both also sought to defuse these confrontations, first by establishing joint patrols and a commission to demarcate the boundary across the lake more clearly. Then in the early 1980s, the low level of Lake Chad brought a series of tiny islands into view, leading to further disputes and disrupting long-standing informal trade networks. This relationship was also complicated by Nigeria's own instability in the north, generated by rising Islamic fundamentalism. Thousands of casualties occurred as the result of violent clashes in Nigeria throughout
Chad–Cameroon Petroleum Development and Pipeline Project which provided $46.6 million to finance Cameroon and Chad's equity in COTCO and TOTCO. Included in plans for the project was a revenue management law developed by the World Bank. This separated the oil revenues given to Chad into four required areas: a Future Generations Fund, health, education and other development projects, a fund to compensate the Doba region of Chad from where the oil was extracted and government reserves. The revenue management law also created the Petroleum Revenue Oversight Committee, which oversees how the oil revenues are spent, and includes members of both the Chadian government and civil society.