U.S./NIGERIA BILATERAL RELATIONSHIP: OBASANJO LAYS

C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001598

SIPDIS

FOR AF ASSISTANT SECRETARY NEWMAN

E.O. 12958: DECL: 09/16/2014
TAGS: PREL MARR EFIN KDEM NI
SUBJECT: U.S./NIGERIA BILATERAL RELATIONSHIP: OBASANJO LAYS
DOWN MARKERS

REF: ABUJA 1472

Classified By: Ambassador John Campbell for Reasons 1.5 (B & D).


1. (C) Summary: In a public speech given at a Nigeria-U.S.
investment conference sponsored by the Corporate Council on
Africa/The Nigerian Economic Summit Group on September 16,
President Obasanjo departed from his previously prepared text
to lay down markers on the U.S./Nigeria bilateral
relationship. He said that the Gulf of Guinea Commission was
the proper forum for resolving border disputes in the region,
referred to a U.S./Nigeria partnership to ensure security in
the Gulf of Guinea, and argued forcefully for debt relief as
a part of that "partnership." He was scathing in his
dismissal of the argument that Nigeria's oil mitigates
against debt relief. The speech was heavily covered by the
Nigeria print and electronic media reporters. During the
break following the speech, Oby Ezekwesili told me that she
saw members of the U.S. Congress as a major impediment to
debt forgiveness. End Summary.

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THE GULF OF GUINEA COMMISSION
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2. (U) Obasanjo's prepared speech for the investment
conference was unremarkable (copy faxed to AF/W). However,
he departed from his previously circulated remarks to make
the following points. Echoing comments he made to Senator
Hagel (reftel),he said that he had been concerned about
security in the Gulf of Guinea since he became President in
1999, and that security was also in the manifest interest of
the U.S. For that purpose he had undertaken a Gulf of Guinea
Initiative to address the issues of changing security,
economic and political patterns expected in the region over
the next decade, and had put together a Gulf of Guinea
Commission of affected governments to take action. That
Commission, he continued, is the proper instrument for
resolving issues in the Gulf of Guinea, including the
international maritime boundaries between countries in the
Gulf. It had already been the means for resolving differences
with Sao Tome and Principe and the establishment of the
Nigeria-STP Joint Development Zone. It had also been the
means for resolving differences with Equatorial Guinea.


3. (U) In the future, Obasanjo continued, the Gulf of Guinea
Commission should be the means of resolving the boundaries
with Cameroon (it is the maritime boundary that is holding up
Bakassi peninsula reversion -- septel). The Gulf of Guinea
Commission, he continued, should be "strongly" supported by
the U.S., because Nigeria and the U.S. must work together on
issues of strategic importance to both nations. The Gulf of
Guinea, he continued, needs more U.S. involvement.
Specifically, Nigeria needs U.S. assistance in developing its
own lift capability: the U.S. should help Nigeria develop the
capability so it could intervene as necessary in the region
to promote peace and stability. He then mentioned Nigeria's
peacekeeping role in Sierra Leone, Liberia, Cote d'Ivoire and
Sudan (Darfur),strongly implying a debt of gratitude owed to
Nigeria by the international community and the U.S. He
referred to the U.S. and Nigeria as "joint guarantors of
peace in the Gulf of Guinea."

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AND RELIEF OF NIGERIA'S SMALL U.S. DEBT
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4. (U) But, Obasanjo told the U.S.-Nigeria investment
conference, the U.S. was not being supportive on debt relief,
despite this strategic partnership and Nigeria's
international peacekeeping roles. He pointed out that
Nigeria's debt to the U.S. is "under one billion dollars."
He was scathing in his dismissal that Nigeria's oil revenues
were a consideration against debt relief. He claimed that
Nigeria's population is 150 million, about the same as the
Russian Federation's (most observers see Nigeria as 130-140
million),and Russia produces four times as much oil as
Nigeria. Yet the U.S. is forgiving Russia's debt -- and
Iraq's: "this is absurd in the extreme", he said. If the
U.S. and Nigeria really are "joint guarantors of security in
the Gulf of Guinea, shouldn't you (the U.S.) show it?"


5. (U) Obasanjo then raised the possibility of establishing
a "fund, to be jointly managed by the U.S. and Nigeria," that
would include the money saved by debt forgiveness. This fund
would be used for hospitals, education, etc. He said there
could even be participation by the relevant UN agencies in
the management of the fund. Reverting to a frequent theme,
Obasanjo then said that the achievements of his government
were not receiving due acknowledgment from the international
community, including the U.S. He said Nigeria deserved "a
pat on the back, which makes you do more."

6. (C) During a break in the U.S.-Nigeria investment
conference after the President left, Oby Ezekwesili, Senior
Personal Advisor to the President on Due process, a member of
the economic reform "dream team" and a close ally of Minister
of Finance Ngozi, commented to me that she thought a major
U.S. obstacle to debt forgiveness is the U.S. Congress.
"They still operate according to the old stereotypes, 419
scams, drugs, etc." She said Nigeria needs to work harder on
the Hill.

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AMBASSADOR'S COMMENT
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7. (C) Obasanjo was laying down markers about the
U.S./Nigeria bilateral relationship before a large audience
that included U.S. business people and prominent
think-tankers, as well as the cream of Nigeria's own business
establishment. I could see the script from which he was
reading: the words were clearly carefully chosen and
thought-out -- he was not speaking off the cuff. His mien
was severe. His message to us seemed to be that it is
pay-back time: in return for his reforms at home and his
activism abroad, he deserves U.S. political and strategic
support in the Gulf of Guinea, including his use of the Gulf
of Guinea Commission to resolve boundary disputes, and above
all, for debt forgiveness. As for the Nigeria/U.S. "security
partnership" in the Gulf of Guinea, this seems to be based on
his reading that the U.S. is absolutely dependent now, or in
the future, on the energy reserves in the region. I presume
that his speech will get heavy play in the Nigerian media.
CAMPBELL