Identifier
Created
Classification
Origin
02ABUJA1675
2002-06-04 14:31:00
CONFIDENTIAL
Embassy Abuja
Cable title:  

NIGERIA: OBASANJO NOT WILLING TO OVERTURN

Tags:  PREL PGOV EINV ETRD BTIO NI 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L ABUJA 001675 

SIPDIS


KAMPALA FOR AID - DAWN LIBERI; RIYADH FOR POL - R.
HANKS


E.O.12958: DECL: 5/23/12
TAGS: PREL PGOV EINV ETRD BTIO NI
SUBJECT: NIGERIA: OBASANJO NOT WILLING TO OVERTURN
TARIFF -- PROCTOR AND GAMBLE


REF: ABUJA 1594


CLASSIFIED BY CHARGE TIM ANDREWS. REASON 1.5 (B) AND
(D).


C O N F I D E N T I A L ABUJA 001675

SIPDIS


KAMPALA FOR AID - DAWN LIBERI; RIYADH FOR POL - R.
HANKS


E.O.12958: DECL: 5/23/12
TAGS: PREL PGOV EINV ETRD BTIO NI
SUBJECT: NIGERIA: OBASANJO NOT WILLING TO OVERTURN
TARIFF -- PROCTOR AND GAMBLE


REF: ABUJA 1594


CLASSIFIED BY CHARGE TIM ANDREWS. REASON 1.5 (B) AND
(D).



1. (C) During a late evening May 18 conversation with
Ambassador Jeter (rest of meeting reported reftel),
President Obasanjo remarked that he would not reverse
the decision raising the tariffs on detergent,
including Proctor and Gamble's Ariel brand. While
wanting to encourage Proctor and Gamble (P&G) to
invest heavily in Nigeria, he would not tilt the
economic playing field in the company's favor, he
stated.



2. (C) Ambassador Jeter explained that P&G wanted to
invest but the only way the investment was feasible
would be if P&G made a profit from their Ibadan
operation. By decimating Ariel's price
competitiveness, the tariff would reduce sales and
profits, thus rendering the company's investment plan
unworkable. Obasanjo responded that he could not show
favoritism to P&G just because it was an American
company. That was not the free market and fair
competition, he quipped. Other detergent manufacturers
faced the same situation but had built production
facilities here. Lifting the tariff would unfairly
penalize these companies, something Obasanjo said he
was not prepared to do. Despite his opposition to
Proctor and Gamble's position, Obasanjo stated that he
would be willing to talk to Proctor and Gamble
officials when he visited Washington in mid-June.
Andrews