C O N F I D E N T I A L SECTION 01 OF 03 ABUJA 000871

SIPDIS


SENSITIVE


E.O. 12958: DECL: 04/25/2006
TAGS: PGOV NI PINR ECON EAGR EMIN LY
SUBJECT: AMBASSADOR VISITS KADUNA


CLASSIFIED BY AMBASSADOR HOWARD F. JETER FOR REASONS 1.5
(B) AND (D).


REF: ABUJA 0501



1. (U) Summary: Ambassador Jeter paid his first official
visit to Kaduna State on March 27 and 28. He met with
Kaduna Governor Ahmed Makarfi, the Emir of Zazzau, Alhaji
Shehu Idris, former Military Head of State General
Muhammadu Buhari, Northern kingmaker Dr. Liman Ciroma and
leaders in Muslim-Christian inter-faith dialogue efforts.
Governor Makarfi focused on his plans for economic
expansion in agriculture and solid-minerals development.
He described his close scrutiny over all government
contracts, which he claimed to annul or modify where there
appears to be collusion or kickbacks. Makarfi said that
this scrutiny allowed him to provide an unprecedented level
of infrastructure development and new government services
while maintaining a balanced budget--one of the benefits of
an effective anti-corruption campaign. The Ambassador's
meeting with the Emir of Zazzau was largely protocolary.
His meetings with Kaduna's retired generals will be
addressed in septel.
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Shari'a
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2. (U) During his first official visit to Kaduna State,
Ambassador Jeter was guest of honor at a State Dinner
hosted by Governor Makarfi on March 27. During lengthy
private meetings on March 27 and 28, the Ambassador
congratulated Governor Makarfi on the work he had done
since the unrest last February to return Kaduna to
normalcy. Makarfi provided an overview of developments in
Kaduna, and discussed his efforts to rebuild parts of the
city destroyed in last year's rioting, as well as to
rebuild trust between the various ethnic groups in the
State (Reftel). He described the tripartite legal system--
criminal Shari'a and customary courts limited to minor
offenses, and common law criminal courts for more serious
offenses. He said that the choice between Shari'a,
customary or common law courts will be at the defendants'

discretion, adding that the civil jurisdiction of Shari'a
courts over Muslims is mandatory--and has been in the North
since before the colonial era. Makarfi said that the
common law justice system had broken down, especially for
the poor, who lack access and resources to properly defend
themselves, or to enforce their rights. (Note: By most
accounts, the Shari'a court system throughout the North is
itself dysfunctional. End Note.) The Ambassador asked
whether a Supreme Court ruling on the constitutionality of
criminal Shari'a would help at this point. Makarfi said
that such a ruling would have been helpful initially, but
that now the issue has "settled down."
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Infrastructure and Economic Development
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3. (U) Makarfi began by indicating an interest in
concluding a sister city arrangement with an appropriately
sized and diverse U.S. city. He then discussed his
budgetary priorities, and described his successes in rural
electrification, provision of potable water and road-
building. (Comment: Post can confirm that this is not
mere rhetoric, but that a substantial portion of Kaduna's
budget is in fact being used to establish and expand
infrastructure throughout the State. End Comment.)
Makarfi said that he was focusing on solid minerals
exploitation and expanding development in the agricultural
sector. He commented that the agricultural sector had the
greatest direct impact on average Nigerians, but said that
the federal government had neglected to invest in
transportation infrastructure and market development that
would permit large-scale agricultural exports.



4. (U) Makarfi said that one of his biggest projects was
to create a "massive" irrigation system that would permit
year-round farming in much of Kaduna State. He said the
lack of a functioning rail system, as well as the
difficulties in clearing goods through customs, inhibited
the agricultural export sector. Makarfi stated that he was
working to create agricultural co-operatives that would be
able to enter into export agreements with European buyers
and guarantee supply. While Makarfi acknowledged that this
would be a long-term project, he said that agricultural
development was in fact the most important sector for
bettering the lives of average Nigerians. (Note:
Nigerians not involved in the oil economy live on an
average of 1 USD per day. End Note.) Makarfi also
mentioned that Kaduna State owns a "state-of-the-art"
canning facility in Zaria that he wants to privatize as
part of his effort to revitalize the agricultural sector.



5. (SBU) The Governor said that he was particularly
interested in recruiting U.S. mining companies to look into
the feasibility of mineral extraction in Kaduna State. He
mentioned that Libyan officials had been showing interest,
but expressed concern that their presence might not be in
the long-term best interests of the state. He mentioned
that there were commercially viable quantities of precious
and semi-precious metals in Kaduna, and said that Kaduna
State would not present the same security risks as
Nigeria's South-South, where the oil industry is based.
The Ambassador agreed to provide any U.S. Geological Survey
information to the Governor, and said that he would refer
the Governor's request to the U.S. Commercial Service.
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Corruption
--------------

6. (C) Ambassador Jeter noted that many Nigerians appeared
cynical about what they consider to be an ineffective and
rapacious Fourth Republic federal government, as well as
equally incompetent local government authorities. He added
that in some states, like Kaduna, Nigerians who were
cynical about the local and federal governments appeared to
feel greater allegiance to State governments that were
actually delivering services to the populous. The
Ambassador then asked Makarfi how he managed his budget to
ensure that State funds were invested rather than
misappropriated. In reply, Makarfi said that his
background was in finance and private banking, having been
the Commissioner of Finance in Kaduna under the
administration of military governor Colonel Jafa'ar Isa.
Makarfi emphasized that he knows how to read a balance
sheet, and said that he personally reviews and approves all
contracts let by the Kaduna State government. He said, "I
know what it costs to get something done."



7. (C) Makarfi said that when President Obasanjo came to
visit Kaduna State last Autumn, he asked how Makarfi
managed to get so much accomplished with no more money that
is given to any other state government. Makarfi said that
he told the President that the states have adequate funding
to accomplish a great deal. It is managing the money--and
the contracts it is spent on--that is the challenge.
Makarfi also commented on the difficulty in monitoring the
corrupt practices of local governments, which have
independent budgetary allocations coming from the federal
government. He said that early in his tenure as Governor
he picked the most rapacious among the local government
chairmen in Kaduna, ordered the police to investigate the
financial practices of the LGA, and then referred him to
the State Assembly for removal, which it did. Makarfi said
this put the other LGA chairmen on notice that their
activities would be monitored, and punished for corruption
and wrongdoing.



8. (C) Makarfi added that the National Association of
Local Governments was "lobbying" the National Assembly to
pass a bill guaranteeing LGA chairmen a four-year tenure,
which would prevent their removal by State Assemblies for
malfeasance. Makarfi said that nearly 400 million naira
(3.07 million USD) had been spent in direct payments to
Assembly members to ensure passage of the bill, which he
added, would be unconstitutional unless presented in the
form of a constitutional amendment to remove the oversight
function of state governments over their LGA's. (Comment:
LGA's and State government budgets, when not properly
administered, represent a substantial drain of GON
resources into private pockets. In the FY 2001 budget,
LGA's will receive 218 billion naira (1.67 billion USD), 20
percent of the federal budget, and States will receive 262
billion naira (2 billion USD), or 28 percent of the federal
budget. End Comment.)



9. (C) Discussing corruption, Makarfi said that he was
disappointed in the lack of oversight being exercised over
federal Ministries. Criticizing some of the current
Ministers, Makarfi asserted "the President is being mis-
used by his advisors." He said, "If the Ministries in
Abuja simply applied the oversight that I do here in
Kaduna, a great deal of corruption could be eliminated."
The Ambassador commented on the fact that Governors had
become a powerful independent political force in the Fourth
Republic. Makarfi agreed that it was a new phenomenon, and
traced it to the efforts of PDP governors to get President
Obasanjo elected. He said that part of the President's
problem in managing what Makarfi described as a largely
corrupt and undisciplined Cabinet stems from the fact that
Obasanjo's Ministers were nominated in repayment of
political debts and as an attempt to adhere to strict
"zoning" by geographical region. Makarfi said that they
are not themselves electable, and many of them are spending
a great deal of time, and government money, trying to
position themselves as potential candidates for Governor in
their home states. (Note: State Governors in Nigeria are
superior to Ministers in official protocol and most
exercise more effective power than federal Ministers. End
Note.)



10. (C) Comment: Governor Makarfi is one of President
Obasanjo's favorites. The Governor and his more
progressive colleagues represent a new development in the
Nigerian democratic experiment. To the extent that
ordinary Nigerians are experiencing a "democracy dividend,"
it appears to derive from effective State governments run
by executives, like Makarfi, who claim to keep an eye on
the bottom line. We are not in a position at this point to
assess definitively which Governors are in the vanguard of
good government and which are engaging in business-as-usual
while claiming to be advocates of good government. We also
cannot independently verify Makarfi's assertions of clean
government.



11. (C) What we see on the gound, however, indicates that
a larger amount of Kaduna State money may be going to fund
projects than into officials' bank accounts. Makarfi
described himself as the wealthiest man in Kaduna State at
the time he was elected, and therefore can afford to be
clean, as he does not have to make his fortune during his
tenure as Governor. As we identify Governors who are
delivering services to their constituents--and combating
corruption--it would seem appropriate to support them and
good governance by targeting some of assistance efforts to
those states. End Comment.