C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 002667

SIPDIS


E.O. 12958: DECL: 10/18/2006
TAGS: ECON EFIN PTER BEXP NI
SUBJECT: NIGERIA: VICE PRESIDENT ON THE GLOBAL COALITION
AGAINST TERRORISM, MONEY LAUNDERING AND RESTRUCTURING JEPC

REF: (A) STATE 169975 (B) STATE 170551


Classified by Ambassador Howard F. Jeter for Reasons 1.5(b)
and (d).



1. (C) Summary. Ambassador Jeter met October 12 with Vice
President Atiku Abubakar to discuss tighter money laundering
controls in Nigeria, the proposed structure for the "son of
JEPC", the need to increase U.S. investment in Nigeria and
bilateral trade. Although offering condolences for the
September 11 attacks, the Vice President qualified his
remarks, suggesting the U.S. examine the reasons behind the
attacks, such as USG policy in the Middle East. USAID
Director Tom Hobgood, RNLEO and EconOff (notetaker) also
attended. End Summary.



2. (U) Beginning the meeting, Ambassador Jeter expressed
condolences for the victims of the recent violence in Jos.
The Vice President thanked the Ambassador, characterizing Jos
as a traditionally "quiet and peaceful" city. He offered
Ambassador Jeter condolences over the September 11 attacks,
adding, "it is unbelievable and sad that the world has become
violent in this way." The Vice President expressed grief for
America, "a country where many Nigerians, including myself,
have taken refuge," in times of trouble in their own country.
Atiku said that he took the attack on the United States very
personally, feeling it was an attack on him.


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Fight Against Terrorism: Money Laundering
--------------



3. (U) Although terrorism represents an unprecedented
challenge, Ambassador Jeter stated the U.S. would remain
committed to the global fight against terrorism for the long
haul. In addition to diplomatic and military responses to
the threat, the global coalition sought to handcuff the
criminals by blocking their funding sources. The Ambassador
conveyed reftel themes, stressing that Nigeria should move
quickly to strengthen financial crime controls, particularly
over money laundering. Ambassador Jeter suggested the
Financial Crimes Commission, as proposed by President
Obasanjo, could play a critical role in coo

rdinating
intelligence on financial crimes as well as law enforcement
response. Ambassador Jeter handed the Vice President a short
non-paper outlining the steps Nigeria needed to take (as
suggested Ref B) to be removed from the FATF's NCCT list, the
first step being to answer the original FATF questionnaire.



4. (U) The Vice President promised that Nigeria's performance
would improve. The GON would establish a strong central
body, in the form of the Financial Crimes Commission, and
enact effective anti-money laundering legislation that would
have the "required teeth and effectiveness to fight
terrorism." Vice President Abubakar said draft legislation
to create the FCC was pending approval by President Obasanjo
and the Federal Executive Council before being sent to the
National Assembly for ratification. He promised to meet with
Ministers of Finance and Justice October 15 to ensure the
FATF questionnaire's completion and transmittal to Paris.
Ambassador Jeter commented that sending the completed
questionnaire to the FATF, while important, was only a small
step towards 'recertification' as a cooperating country. The
Vice President offered to send the Embassy the committee's
draft report "to demonstrate our commitment to move on this
issue." Moreover, he said that he would soon send the
minutes of the Committee's meeting and any proposed
recommendations to the FATF, as a sign of Nigeria's good
intentions.



5. (C) Ambassador Jeter handed the Vice President copies of
the U.S. Executive Order and list of 27 prosecuted terrorist
entities. The Vice President commented that some Nigerian
NGOs might have some contact with these entities, but
promised that Nigerian intelligence would investigate
possible connections. The Ambassador asked whether the
Africa International Bank (formerly the Bank for Commerce and
Credit International) had ties to Kabul and the Taliban.
Vice President Abubakar denied any connection between
Nigerian banks and Afghanistan, except perhaps Habib Bank, he
said. The Vice President recalled, however, that Middle
Eastern businessmen, interested in banking sector
investments, had visited Nigeria recently. Some investment
in the recently privatized United Bank of Africa came from
the Middle East, he added.


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Restructuring JEPC
--------------



6. (U) Ambassador Jeter presented the U.S. interagency
recommendations on U.S. - Nigeria bilateral engagement and
restructuring the Joint Economic Partnership Committee.
Three committees would be created: Economic, Law Enforcement,
and Defense. Each Committee would establish an agenda and
objectives, which would then be tasked to working groups for
action. If the GON accepted this proposal, Ambassador Jeter
suggested, the two sides could meet as early as 2002 in
either the U.S. or Nigeria. Examples of objectives could
include creation of a Nigerian Investment Fund, increase in
non-oil trade, increase in agricultural output and
self-sufficiency in refined oil products. The Vice President
responded that he "already had some different ideas on this."
The Embassy should discuss the proposal in detail with his
staff. The sooner the better, he stressed. He wanted
significant progress by June 2002, before the election period
in Nigeria begins in earnest.



7. (U) Ambassador Jeter asked who would lead this issue for
the GON. The Vice President replied that the lead would be
Chief Economic Advisor Magnus Kpakol with the caveat that, as
Chairman of the Privatization Council, the Chief Economic
Advisor reports to the Vice President. (Comment. Kpakol's
predecessor, Philip Asiodu, had a notoriously competitive
relationship with the Vice President on most economic policy
issues. It appears that the Vice President's relationship
with the new Chief Economic Advisor will be more cooperative.
End Comment.)


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Bilateral Commercial Relationship
--------------



8. (U) Ambassador Jeter suggested that the Economic Committee
could provide a structure in which the two countries could
tackle bilateral trade issues. In meetings with the
Corporate Council on Africa in September, the Ambassador
witnessed skepticism amongst U.S. companies in respect of
Nigeria's non-oil sector. Ambassador Jeter commented that,
to attract U.S. companies into Nigeria's non-oil sectors,
they must first see some non-oil success stories. The Vice
President agreed a major breakthrough would be achieved if
this were done. He felt there had been a slight increase in
interest from U.S. companies. More companies had requested
meetings with him. However, the Vice President averred,
these companies appeared unfamiliar with Nigeria and needed
enticements and encouragement from the GON. Vice President
Abubakar asserted U.S. companies should bring their proposals
directly to him -- before problems arise, not afterward. He
explained that by the time a company encounters an obstacle,
it was often too late for him to intervene because of
political sensitivities, i.e., it could embarrass the
Minister involved.


--------------
Domestic Security
--------------



9. (C) The Ambassador asked the Vice President for his
assessment of the current security situation in light of
occasional statements by Nigerian Muslim clerics that appear
sympathetic to Osama bin-Laden. The Vice President replied
that there were no signs of terrorists operating in Nigeria.
However, he added, all GON security agencies were on
heightened alert, anticipating that GON response time to any
situation would be swift. Although Africa should not be
regarded as a danger zone by the global coalition against
terrorism, all African nations should be on high alert in
case terrorists begin to migrate here, he advised.



10. (C) Ambassador Jeter emphasized the serious threat the
world was now facing, pointing to a long string of attacks on
U.S. interests from the East Africa Embassy and USS Cole
bombings to the more recent WTC attacks. The Vice President
suggested that America ask why this was happening, "what is
America doing?", he asked. Ambassador Jeter replied that
while many Americans asked these questions, grievances
against the U.S. should be discussed and negotiated, not used
to senselessly slaughter innocent people. The Vice President
agreed the attacks were inexcusable, but offered it was "high
time the U.S. look at the question of why it (terrorist
attacks) always comes from the Middle East." He referred to
comments by CNN correspondent Lou Dobbs who suggested the USG
had been insensitive to Middle East problems and must now
harmonize its views with the rest of the world. Ambassador
Jeter again reiterated that these attacks were instruments of
terror that, next time, might strike outside the United
States. Vice President Abubakar agreed it was a global
problem; Nigeria was committed to preventing these atrocities
from recurring and was "determined to keep Nigeria safe for
everyone."
Jeter