By Sue Pleming

WASHINGTON, March 9 (Reuters) - The presidential candidate for Nigeria's ruling party, who is in Germany for medical care, is in good health and those predicting his death before April's election are playing politics, a Nigerian minister said on Friday.

The election on April 21 could mark the first democratic transition in the history of Africa's most populous nation, which is also the world's eighth-largest oil exporter.

Nigerian parties and candidates have been trading allegations of foul play, saying President Olusegun Obasanjo has accused some of his opponents of corruption so they cannot take part in the poll.

Nasir Ahmad el-Rufai, the federal capital territory minister, tried to assuage the fears of foreign investors and others that his party's candidate, Umaru Yar'Adua, was not well enough to take part in the election or was close to death.

"He is going back to Nigeria tomorrow," said el-Rufai, who is in the United States to meet investors and U.S. officials before the election. "He just sent me an SMS (text message) and I spoke to him today. He is in good health and he is fine."

Yar'Adua was suffering from exhaustion and sought medical care this week in Germany after a punishing campaign schedule that would tax anyone, el-Rufai told Reuters. The candidate was treated in Germany about six years ago for kidney problems.

"Only God knows who will die today or tomorrow and to spread rumors about his death is raising politics to absurd levels," said el-Rufai.

"I have known him for 35 years and he is in excellent health. He plays 12 rounds of squash every evening."

"SINGING THE SAME SONG"

President Obasanjo is a Christian from southern Nigeria and is expected to be replaced by someone from the predominantly Muslim north, where Yar'Adua comes from.

If Yar'Adua, who belongs to the ruling People's Democratic Party, were to die while on the job, that could make way for the vice-presidential candidate from the south, Goodluck Jonathan, to take over.

Asked about this scenario, el-Rufai said: "As long as the president of Nigeria is a Nigerian, I don't think it matters."

He said he believed the choice of Jonathan as vice-presidential candidate had reduced violence in the oil-rich Niger Delta region and that there had been fewer kidnappings in recent weeks of foreign workers there.

Kidnappings for ransom, armed robberies and militant attacks on oil infrastructure are frequent in the delta.

In meetings in New York and Washington this week, el-Rufai sought to reassure jittery fund managers, bankers and U.S. officials that the April election will run smoothly and the winner will continue an anti-corruption campaign.

"The candidates are all singing the same song," he said. "Nothing is going to change."

El-Rufai said he expected violence in "one or two states but nothing too significant" and predicted international election monitors would judge the poll as free and fair.

He said he understood the wait-and-see attitude of some investors but flagged three areas where there would be good opportunities in Nigeria -- the electricity sector, minerals and international call centers.

"Immediately after we are able to get the elections done efficiently and with a minimum of rancor, the country will take off," el-Rufai said. "There will be a rush to Nigeria."

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