Identifier
Created
Classification
Origin
08ABUJA1874
2008-09-17 16:38:00
CONFIDENTIAL
Embassy Abuja
Cable title:
NIGERIA: ECONOMIC ADVISOR SAYS NIGERIA WILL
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C O N F I D E N T I A L ABUJA 001874
SIPDIS
DEPARTMENT FOR EB/IFD/OIA
DEPARTMENT PASS TO USTR (AGAMA)
TREASURY FOR RHALL AND DPETERS
E.O. 12958: DECL: 09/15/2018
TAGS: ETRD ECON PREL PGOV EAGR EFIN EAID NI
SUBJECT: NIGERIA: ECONOMIC ADVISOR SAYS NIGERIA WILL
DRASTICALLY REDUCE IMPORT BANS
Classified By: Acting Deputy Chief of Mission Robert Tansey for reasons
1.4. (b & d).
C O N F I D E N T I A L ABUJA 001874
SIPDIS
DEPARTMENT FOR EB/IFD/OIA
DEPARTMENT PASS TO USTR (AGAMA)
TREASURY FOR RHALL AND DPETERS
E.O. 12958: DECL: 09/15/2018
TAGS: ETRD ECON PREL PGOV EAGR EFIN EAID NI
SUBJECT: NIGERIA: ECONOMIC ADVISOR SAYS NIGERIA WILL
DRASTICALLY REDUCE IMPORT BANS
Classified By: Acting Deputy Chief of Mission Robert Tansey for reasons
1.4. (b & d).
1. (C) Nigeria's Chief Economic Advisor (CEA),Dr. Tanimu
Yakubu Kurfi, and CEA Desk Officer for Food and Security and
U.S. Affairs Engr. Waziri Ahmadu, joined Ambassador and
Acting DCM for a two-hour working dinner at the CMR on
September 15. In the course of the dinner conversation, Dr.
Yakubu told the Ambassador President Yar'Adua has ordered his
ministers to reduce the large number of import bans to no
more than six. (Yakubu gave the current number of bans as
95-100). He promised to give Post the GON's upcoming working
papers on what, if realized, would be a major shift in
Nigerian trade philosophy. He said the GON was still working
on its BIT proposal but described internal comments on the
U.S. Model Agreement as minor to date.
2. (C) While Yakubu opined that the international oil
companies were stalling on GON intentions to form
incorporated joint ventures which could raise their own funds
in international financial markets, he stressed that he
wanted to facilitate more American company involvement in the
Nigerian market, lamenting that "bureaucrats" simply accepted
the lowest bid, ignoring other performance criteria and
leading to many failed projects. Yakubu has clearly done a
lot of thinking about ways to move Nigerian fiscal management
at all governmental levels from a system of cash in envelopes
to one of greater accountability. He gave examples of his
and the President's efforts, both recently at the federal
level, and from when he served as Yar'Adua's Commissioner of
Finance in Katsina State. He stated his strong interest in
integrating his efforts with programs of the U.S. and other
donors aimed at greater fiscal responsibility at the state
and local levels.
3. (C) A recent head of Nigeria's federal mortgage bank,
Yakubu expressed his concern about lack of clear land and
real property rights in Nigeria, citing the practice by many
governors of personally "granting" parcels of land to
individuals or companies. He related those concerns to the
challenges of mobilizing agricultural production and welcomed
the interest of U.S. agribusinesses in the GON's efforts to
boost agriculture production. Yakubu said that the previous
system of planned investments in infrastructure had broken
down under a series of military regimes, and government at
all levels had to learn how to sustain infrastructure
projects to fruition. He lamented that the Federal
Government was in the impossible position of having to try to
satisfy local health and water needs because state and local
governments were not fulfilling their mandates. He made a
cogent case for use of debt markets to fund specific state
and local projects, saying the use of dedicated funds would
allow for greater transparency and accountability. He called
for a "hard rethink" on the part of both donors and the GON,
saying there needed to be a new emphasis towards eliminating
constraints on economic growth, so that local areas could
create their own infrastructure and social services.
4. (C) Comment: If Yakubu is right about the mandate to
reduce import bans, then that would represent a major shift
in Nigerian economic philosophy. Often, Nigeria appears not
to have a discernible market system, unless one counts
cronyism as a system. Yakubu certainly talks like he wants
to move towards a system that actually provides incentives
for value-added economic activities. We will engage with him
on several of the policy and program areas discussed, and see
whether we can work with the CEA to make progress on our
mission goals in the areas under his purview. Septel reports
on Yakubu's emergence as a major player in the GON and tasks
he is taking up which go well beyond economic advice. End
comment.
SANDERS
SIPDIS
DEPARTMENT FOR EB/IFD/OIA
DEPARTMENT PASS TO USTR (AGAMA)
TREASURY FOR RHALL AND DPETERS
E.O. 12958: DECL: 09/15/2018
TAGS: ETRD ECON PREL PGOV EAGR EFIN EAID NI
SUBJECT: NIGERIA: ECONOMIC ADVISOR SAYS NIGERIA WILL
DRASTICALLY REDUCE IMPORT BANS
Classified By: Acting Deputy Chief of Mission Robert Tansey for reasons
1.4. (b & d).
1. (C) Nigeria's Chief Economic Advisor (CEA),Dr. Tanimu
Yakubu Kurfi, and CEA Desk Officer for Food and Security and
U.S. Affairs Engr. Waziri Ahmadu, joined Ambassador and
Acting DCM for a two-hour working dinner at the CMR on
September 15. In the course of the dinner conversation, Dr.
Yakubu told the Ambassador President Yar'Adua has ordered his
ministers to reduce the large number of import bans to no
more than six. (Yakubu gave the current number of bans as
95-100). He promised to give Post the GON's upcoming working
papers on what, if realized, would be a major shift in
Nigerian trade philosophy. He said the GON was still working
on its BIT proposal but described internal comments on the
U.S. Model Agreement as minor to date.
2. (C) While Yakubu opined that the international oil
companies were stalling on GON intentions to form
incorporated joint ventures which could raise their own funds
in international financial markets, he stressed that he
wanted to facilitate more American company involvement in the
Nigerian market, lamenting that "bureaucrats" simply accepted
the lowest bid, ignoring other performance criteria and
leading to many failed projects. Yakubu has clearly done a
lot of thinking about ways to move Nigerian fiscal management
at all governmental levels from a system of cash in envelopes
to one of greater accountability. He gave examples of his
and the President's efforts, both recently at the federal
level, and from when he served as Yar'Adua's Commissioner of
Finance in Katsina State. He stated his strong interest in
integrating his efforts with programs of the U.S. and other
donors aimed at greater fiscal responsibility at the state
and local levels.
3. (C) A recent head of Nigeria's federal mortgage bank,
Yakubu expressed his concern about lack of clear land and
real property rights in Nigeria, citing the practice by many
governors of personally "granting" parcels of land to
individuals or companies. He related those concerns to the
challenges of mobilizing agricultural production and welcomed
the interest of U.S. agribusinesses in the GON's efforts to
boost agriculture production. Yakubu said that the previous
system of planned investments in infrastructure had broken
down under a series of military regimes, and government at
all levels had to learn how to sustain infrastructure
projects to fruition. He lamented that the Federal
Government was in the impossible position of having to try to
satisfy local health and water needs because state and local
governments were not fulfilling their mandates. He made a
cogent case for use of debt markets to fund specific state
and local projects, saying the use of dedicated funds would
allow for greater transparency and accountability. He called
for a "hard rethink" on the part of both donors and the GON,
saying there needed to be a new emphasis towards eliminating
constraints on economic growth, so that local areas could
create their own infrastructure and social services.
4. (C) Comment: If Yakubu is right about the mandate to
reduce import bans, then that would represent a major shift
in Nigerian economic philosophy. Often, Nigeria appears not
to have a discernible market system, unless one counts
cronyism as a system. Yakubu certainly talks like he wants
to move towards a system that actually provides incentives
for value-added economic activities. We will engage with him
on several of the policy and program areas discussed, and see
whether we can work with the CEA to make progress on our
mission goals in the areas under his purview. Septel reports
on Yakubu's emergence as a major player in the GON and tasks
he is taking up which go well beyond economic advice. End
comment.
SANDERS