Identifier
Created
Classification
Origin
08ABUJA1481
2008-07-31 06:50:00
CONFIDENTIAL
Embassy Abuja
Cable title:  

NIGERIA: U/S JEFFERY'S MEETING WITH FOREIGN

Tags:  PREL PGOV ECON EAID ENRG EPET EINV NI 
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P 310650Z JUL 08
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 3509
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHYD/AMEMBASSY YAOUNDE 0313
RUEHOS/AMCONSUL LAGOS 9683
RHMFISS/HQ USAFRICOM STUTTGART GE
RHEBAAA/DEPT OF ENERGY WASHDC
RHEHNSC/NSC WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEKDIA/DIA WASHDC
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001481 

SIPDIS

STATE FOR AF/W, INR/AA
DOE FOR GEORGE PERSON

E.O. 12958: DECL: 07/29/2018
TAGS: PREL PGOV ECON EAID ENRG EPET EINV NI
SUBJECT: NIGERIA: U/S JEFFERY'S MEETING WITH FOREIGN
MINISTER MADUEKWE

Classified By: Political Counselor Walter Pflaumer for reasons 1.4. (b
& d).

C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001481

SIPDIS

STATE FOR AF/W, INR/AA
DOE FOR GEORGE PERSON

E.O. 12958: DECL: 07/29/2018
TAGS: PREL PGOV ECON EAID ENRG EPET EINV NI
SUBJECT: NIGERIA: U/S JEFFERY'S MEETING WITH FOREIGN
MINISTER MADUEKWE

Classified By: Political Counselor Walter Pflaumer for reasons 1.4. (b
& d).


1. (C) Summary: In a July 25 meeting, U/S Jeffery and FonMin
Maduekwe discussed US technical support for efforts to
improve the Nigerian power sector, changing attitudes in
Nigeria toward corruption, and the GoN's desire to improve
the business climate and encourage investment in Nigeria.
The Ambassador also took advantage of the meeting to present
demarches concerning Iran at the NAM Foreign Ministers'
meeting and the negotiations on a political settlement in
Zimbabwe (septels). U/S Jeffery highlighted the reasons for
his visit and the importance the USG places on the
u.S.-Nigeria bilateral relationship. In response to U/S
Jeffery's comments encouraging Nigeria to continue the fight
against corruption, the Minister argued that there have been
major shifts in public and media attitudes regarding
transparency issues away from resigned acceptance of
corruption and toward real demands for the government to
tackle the problem. On changing the business climate,
Maduekwe acknowledged that there were problems and risks
facing potential investors in Nigeria, but argued that there
were also huge benefits, and that American business needs to
take advantage of these opportunities. The two also
discussed Nigeria's major energy issues. End Summary.


2. (C) On July 25, Under Secretary for Economic Affairs
Reuben Jeffery and the Ambassador met with Nigerian Foreign
Minister Ojo Maduekwe at the MFA. Jeffery was accompanied by
Special Assistant Amy Westling and PolCouns (notetaker). The
FonMin's Special Advisor Ambassador Hart, MFA Director for
Regions Vincent Okoedion and Office Director for North
America Charles Onianwa were also present.

Helping the Nigerian Power Sector
--------------

3. (C) Foreign Minister Maduekwe said his office had been

under considerable pressure dealing with issues related to
the global energy crisis, and the linked crisis over global
food supplies. U/S Jeffery recalled that these issues had
come up in several of his meetings in Nigeria thus far. He
and his Nigerian interlocutors had discussed the GoN's
significant domestic challenges over crude oil production,
and supplies of electricity and fuel (both gasoline and
diesel). Jeffery said he had been impressed with these
meetings and with the technical proficiency of the Nigerian
officials with whom he had met.


4. (C) Maduekwe referred to the U.S. Mission's Framework for
Partnership, and asked if there were specific things the USG
could do to help on the power generation issue. The
Ambassador said we were providing technical assistance in
several different ways. She pointed to the recent
USG-sponsored power-sector workshop which included
participation from the US Trade Development Agency and Ex-Im
Bank. She also noted the recently launched partnership
between the Nigerian Electricity Regulating Commission and
the counterpart agency from the US State of Michigan which is
helping to advance the generation and distribution of
electric power in Nigeria and thus enhance opportunities for
private investment. U/S Jeffery added that the USG very much
considered itself a friend of Nigeria, and wanted to be as
supportive as possible of such efforts.

Reducing Corruption
--------------

5. (C) U/S Jeffery then turned to what he described as a
"sensitive issue," the need for continuing improvement in
transparency in order to advance the overall business climate
in Nigeria. Reducing corruption and having a legal system
where contracts were respected were vitally important if
Nigeria is to attract the international investment it needs,
he stressed.


6. (C) In reply, Maduekwe noted that in the over two decades
he had been in government, he had witnessed a significant
shift in the public's attitude toward official corruption.
In earlier days, both ordinary people and the media tended to
view with resignation the sight of officials lining their

ABUJA 00001481 002 OF 002


pockets with public money. Now, however, the press was much
more likely to name and shame the more egregious offenders,
and the public was clearly looking to the GoN to do something
about it. The GoN's various investigative agencies were an
attempt to respond to this expectation. Still, Maduekwe
recognized that President Yar'Adua's government was beginning
to face media criticism over its performance in this area; in
order to succeed, it would have to prove that it had the
political will to bring corrupt officials to justice.

Attracting International Investment
--------------

7. (C) Maduekwe acknowledged that there were other problems,
particularly bureaucratic bottlenecks and security risks,
which needed to be addressed if Nigeria was to improve its
business climate and attract needed investment. The Minister
argued, however, that these difficulties and risks were
balanced by real opportunities. While the country had a weak
industrial base, this was also an area for growth. In any
case, Nigeria was a "huge market," and those who put in the
time to learn the country would make good money. He called
for "a paradigm shift" among international investors,
particularly American businesses in order to see Nigeria as
an opportunity, not just a risk. He argued that such a shift
in attitude would be of major benefit to the overall
strategic partnership between Nigeria and the US. He hoped
to be able to continue this dialogue with U/S Jeffery,
perhaps with a meeting on the fringes of the upcoming
September UNGA.


8. (U) This cable was cleared by
SANDERS