Identifier
Created
Classification
Origin
09ABUJA1591
2009-08-28 17:05:00
CONFIDENTIAL
Embassy Abuja
Cable title:
NIGERIAN NUGGETS -- AUGUST 28, 2009
how-toVZCZCXRO3754 PP RUEHPA DE RUEHUJA #1591/01 2401705 ZNY CCCCC ZZH P 281705Z AUG 09 FM AMEMBASSY ABUJA TO RUEHC/SECSTATE WASHDC PRIORITY 6915 INFO RUEHZK/ECOWAS COLLECTIVE PRIORITY RUEHSA/AMEMBASSY PRETORIA PRIORITY 2062 RUEHYD/AMEMBASSY YAOUNDE PRIORITY 1015 RUEHOS/AMCONSUL LAGOS PRIORITY 1880 RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY RUEHC/DEPT OF LABOR WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUEKJCS/DIA WASHINGTON DC PRIORITY RUEAIIA/CIA WASHINGTON DC PRIORITY RHMFISS/HQ USEUCOM VAIHINGEN GE PRIORITY RHMFISS/HQ USAFRICOM STUTTGART GE PRIORITY RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK PRIORITY RHEHNSC/NSC WASHINGTON DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 ABUJA 001591
SIPDIS
DEPT FOR AF/FO, AF/W, INR/AA;
DEPT PASS TO USAID FOR AFR (ATWOOD);
DEPT PASS USTR (AGAMA);
DOE FOR GPERSON, CHAYLOCK;
TREASURY FOR PETERS AND IERONIMO;
LABOR FOR SHALEY;
USDA/FAS/OTP FOR MCKENZIE;
E.O. 12958: DECL: 08/28/2019
TAGS: PGOV ECON PREL OREP ELAB EFIN PINR NI
SUBJECT: NIGERIAN NUGGETS -- AUGUST 28, 2009
Classified By: Political Counselor James P. McAnulty
for reasons in Sections 1.4 (B) and (D)
C O N F I D E N T I A L SECTION 01 OF 03 ABUJA 001591
SIPDIS
DEPT FOR AF/FO, AF/W, INR/AA;
DEPT PASS TO USAID FOR AFR (ATWOOD);
DEPT PASS USTR (AGAMA);
DOE FOR GPERSON, CHAYLOCK;
TREASURY FOR PETERS AND IERONIMO;
LABOR FOR SHALEY;
USDA/FAS/OTP FOR MCKENZIE;
E.O. 12958: DECL: 08/28/2019
TAGS: PGOV ECON PREL OREP ELAB EFIN PINR NI
SUBJECT: NIGERIAN NUGGETS -- AUGUST 28, 2009
Classified By: Political Counselor James P. McAnulty
for reasons in Sections 1.4 (B) and (D)
1. (U) Mission Nigeria provides the following compilation of
recent political, economic, and social developments in
Nigeria not reported elsewhere.
--------------
Oil Production Increases
--------------
2. (SBU) Petroleum Resource Minister Rilwan Lukman announced
August 26 that Nigeria's daily crude oil production has now
reached 1.7 million barrels per day (bpd),up from 1.2
million bpd. (N.B.: OPEC limits Nigeria's production to 1.7
million bpd. Crude oil reserves stand at 37 billion barrels,
with a target of 40 billion barrels in the near future. End
note). Lukman attributed increased production to improved
security in the oil producing Delta resulting from the GON
amnesty program for militants. Although some international
oil companies (IOC) confirmed improved production, they
remained nervous and warned that production levels could
again decrease.
--------------
CONCERN OVER TAX IMPLICATIONS OF PIB
--------------
3. (C) The British High Commissioner, Charge, Acting ECON
Counselor, and French and Dutch counterparts met August 26 to
discuss IOC concerns over the draft Petroleum Industry Bill
(PIB) under consideration by Nigerian National Assembly.
While participants praised the Bill's objective of
deregulating the industry as positive, they expressed concern
that the bill's tax regime would negatively affect current
contract rights and future investment and production
capacity. They agreed that providing the GON urgently with
an independent analysis on tax implications would be
important. Senior GON officials in the oil and gas sector
appeared determined to press for the bill's passage before
year's end. While the Finance Ministry recently approached
the IMF to conduct such an analysis, the IMF appeared unable
to dispatch a team before October. Given the PIB's
potentially significant impact and the opportunity presented
by the Finance Ministry's request, attendees agreed to send
messages to their capitals to explore possibilities for
encouraging the IMF to act much sooner.
-------------- --------------
IBM COLLABORATIVE LAB AND CORPORATE SERVICE CORPS
-------------- --------------
4. (U) IBM representatives briefed Charge August 27 on plans
to establish a collaborative laboratory at the GON-funded
Digital Bridge Institute in Abuja, the first of its type in
Africa. IBM planned to assign three or four researchers to
work with Nigerian counterparts on projects co-financed by
the GON and the World Bank, with research focusing initially
on developing tele-
communications and cellular telephone applications to help
farmers obtain better information to market their products.
IBM also mentioned the possibility of establishing a similar
collaborative lab at the Usumanu Danfodiyo University in
Sokoto.
5. (U) IBM has agreed with the Cross River State government
to launch a Corporate Service Corps program in Calabar. The
first cohort of nine IBM managers (including two U.S.
citizens) would arrive the last weekend in August to start a
one-month leadership program, involving local
ABUJA 00001591 002 OF 003
non-governmental organizations and the state government, in
tourism value chain development and design and delivery of
social welfare programs. IBM intended to send two more
groups in October and early 2010.
--------------
PORT PROBLEMS
--------------
6. (SBU) APM Ports reported to an August 21 American Business
Council (ABC) meeting that it had greatly reduced ship
waiting times for off-loading and enhanced port safety and
security since taking over management of Lagos' Apapa Port in
January. Despite gains in efficiency, the customs process
continues to cause delays in clearing containers, with
clearances taking an average of 28 days. Nigerian Customs
personnel scan 100 percent of containers and inspect 80
percent. (N.B., in comparison, the United States and Europe
scan 100 percent and inspect ten percent. END NOTE.)
7. (C) Meeting participants heard that Nigerian Customs
officials reportedly charge "fees" of 20,000 dollars to
"expedite" clearances of containers, with sources estimating
that these officials receive up to 15 million dollars monthly
in bribes. Companies often use shipyards as storage
facilities, with containers left there for months before pick
up. Authorities auction containers left for 90 days or more,
at times to the original owners, for fractions of their fair
market value. AMP Ports representatives suggested that, to
promote effective operations, authorities should dredge the
harbor to 13 meters regularly, enforce existing customs laws,
and improve infrastructure, including roads and power.
Meeting participants also learned that a Chinese company won
the tender for expansion of Lagos Port.
8. (SBU) Pfizer representatives at the ABC meeting remarked
that 50 percent of pharmaceuticals in Nigeria were fake, with
all fakes coming through the ports. Efficient inspections in
Amsterdam prevented additional fake pharmaceutical products
from entering from India to Nigeria.
--------------
SEIZURE OF WEAPONS TRUCK IN ABUJA
--------------
9. (SBU) Nigerian Police officials confirmed to us that they
intercepted a truck loaded with weapons at Jabi Motor Park in
Abuja. Police determined that the weapons belonged to the
Nigeria Union of Road Transport Workers (NURTW). Federal
Capital Territory (FCT) police arrested and detained about 36
NURTW members, who remained under interrogation by the
Criminal Investigation Department (CID). Authorities
impounded the truck and its cargo in the FCT Command pending
further investigation on the weapons, source. Police, who
had reportedly become aware of a burgeoning conflict during
the past month between NURTW members and non-union workers in
Jabi Motor Park, quickly intervened to prevent violence.
--------------
OPPOSITION CANDIDATE WINDS SPECIAL ELECTION
--------------
10. (U) The Independent Nigerian Electoral Commission (INEC)
declared that opposition Action Congress (AC) candidate Kabir
Adjoto won a special election August 22 for a House of
Assembly seat in the Akoko-Edo constituency. Last July, the
Federal Appeals Court upheld a lower court ruling that
violence and irregularities had marred the April 2007
election of ruling People's Democratic Party (PDP) legislator
Anselem Agbabi, and ordered INEC to conduct a new election
ABUJA 00001591 003 OF 003
within 90 days. The PDP rejected Adjoto's victory and vowed
to seek court redress, alleging that AC thugs had disrupted
the election by using dangerous weapons to frighten away
voters. Governor Adams Oshiomhole countered that the PDP
lost because it could not rig this special election as
occurred in 2007. With Adjoto's victory, the AC increased
its seats in the 24-member Assembly to 10, while the PDP
seats dropped to 12 members. Two cases remained pending
before the courts.
--------------
ISLAMIC COMMUNITY MEETS AT CG LAGOS
--------------
11. (U) Lagos Consul General hosted an Iftar dinner August 26
for members of the Islamic community, including scholars,
imams, prominent businessmen, and civil society leaders.
Leading Islamic scholar and Muslim Rights Concern (MURIC)
Director, Professor Is-haq Akintola, declared that "Islam is
a religion of peace; Islam gives life." He categorically
rejected Islam's association with terrorism, adding that the
United States did what Islamic nations should do -- leading
the world in charity and assistance to the poor. Professor
Khalid Adekoya condemned Boko Haram as anti-Islamic,
reminding guests that Islam admonished all followers to seek
knowledge "even to the ends of the earth." H argued that
Boko Haram directly contradicted Islamic teachings. Other
participants, including a representative of Catholic Cardinal
Anthony Okogie, expressed appreciation to CG for the chance
to meet with Muslim community leaders in a warm, congenial
setting.
--------------
CONGRESSWOMAN VISITS USAID PROJECTS
--------------
12. (SBU) U.S. Congresswoman Sheila Jackson Lee visited two
projects supported by the U.S. Agency for International
Development (USAID) during her August 19-20 visit to Nigeria.
At the first project, Representative Jackson Lee met with
staff and patients at Saint Mary's Catholic Hospital, which
provided free HIV/AIDS comprehensive care to infected persons
with support from the President's Emergency Plan for AIDS
Relief (PEPFAR). At the second project, she toured an
International Institute of Tropical Agriculture (IITA) field
station supported by the Global Food Security Response
initiative. The field station provided farmers, including
many women, with high-yielding, disease-
resistant varieties of cassava, rice, and maize. Farmers
praised the USAID-supported model, which allowed them to
triple incomes and productivity. Local media covered the
Congresswoman's remarks, which highlighted U.S. support for
food security, electoral reform, and good governance.
MCCULLOUGH
SIPDIS
DEPT FOR AF/FO, AF/W, INR/AA;
DEPT PASS TO USAID FOR AFR (ATWOOD);
DEPT PASS USTR (AGAMA);
DOE FOR GPERSON, CHAYLOCK;
TREASURY FOR PETERS AND IERONIMO;
LABOR FOR SHALEY;
USDA/FAS/OTP FOR MCKENZIE;
E.O. 12958: DECL: 08/28/2019
TAGS: PGOV ECON PREL OREP ELAB EFIN PINR NI
SUBJECT: NIGERIAN NUGGETS -- AUGUST 28, 2009
Classified By: Political Counselor James P. McAnulty
for reasons in Sections 1.4 (B) and (D)
1. (U) Mission Nigeria provides the following compilation of
recent political, economic, and social developments in
Nigeria not reported elsewhere.
--------------
Oil Production Increases
--------------
2. (SBU) Petroleum Resource Minister Rilwan Lukman announced
August 26 that Nigeria's daily crude oil production has now
reached 1.7 million barrels per day (bpd),up from 1.2
million bpd. (N.B.: OPEC limits Nigeria's production to 1.7
million bpd. Crude oil reserves stand at 37 billion barrels,
with a target of 40 billion barrels in the near future. End
note). Lukman attributed increased production to improved
security in the oil producing Delta resulting from the GON
amnesty program for militants. Although some international
oil companies (IOC) confirmed improved production, they
remained nervous and warned that production levels could
again decrease.
--------------
CONCERN OVER TAX IMPLICATIONS OF PIB
--------------
3. (C) The British High Commissioner, Charge, Acting ECON
Counselor, and French and Dutch counterparts met August 26 to
discuss IOC concerns over the draft Petroleum Industry Bill
(PIB) under consideration by Nigerian National Assembly.
While participants praised the Bill's objective of
deregulating the industry as positive, they expressed concern
that the bill's tax regime would negatively affect current
contract rights and future investment and production
capacity. They agreed that providing the GON urgently with
an independent analysis on tax implications would be
important. Senior GON officials in the oil and gas sector
appeared determined to press for the bill's passage before
year's end. While the Finance Ministry recently approached
the IMF to conduct such an analysis, the IMF appeared unable
to dispatch a team before October. Given the PIB's
potentially significant impact and the opportunity presented
by the Finance Ministry's request, attendees agreed to send
messages to their capitals to explore possibilities for
encouraging the IMF to act much sooner.
-------------- --------------
IBM COLLABORATIVE LAB AND CORPORATE SERVICE CORPS
-------------- --------------
4. (U) IBM representatives briefed Charge August 27 on plans
to establish a collaborative laboratory at the GON-funded
Digital Bridge Institute in Abuja, the first of its type in
Africa. IBM planned to assign three or four researchers to
work with Nigerian counterparts on projects co-financed by
the GON and the World Bank, with research focusing initially
on developing tele-
communications and cellular telephone applications to help
farmers obtain better information to market their products.
IBM also mentioned the possibility of establishing a similar
collaborative lab at the Usumanu Danfodiyo University in
Sokoto.
5. (U) IBM has agreed with the Cross River State government
to launch a Corporate Service Corps program in Calabar. The
first cohort of nine IBM managers (including two U.S.
citizens) would arrive the last weekend in August to start a
one-month leadership program, involving local
ABUJA 00001591 002 OF 003
non-governmental organizations and the state government, in
tourism value chain development and design and delivery of
social welfare programs. IBM intended to send two more
groups in October and early 2010.
--------------
PORT PROBLEMS
--------------
6. (SBU) APM Ports reported to an August 21 American Business
Council (ABC) meeting that it had greatly reduced ship
waiting times for off-loading and enhanced port safety and
security since taking over management of Lagos' Apapa Port in
January. Despite gains in efficiency, the customs process
continues to cause delays in clearing containers, with
clearances taking an average of 28 days. Nigerian Customs
personnel scan 100 percent of containers and inspect 80
percent. (N.B., in comparison, the United States and Europe
scan 100 percent and inspect ten percent. END NOTE.)
7. (C) Meeting participants heard that Nigerian Customs
officials reportedly charge "fees" of 20,000 dollars to
"expedite" clearances of containers, with sources estimating
that these officials receive up to 15 million dollars monthly
in bribes. Companies often use shipyards as storage
facilities, with containers left there for months before pick
up. Authorities auction containers left for 90 days or more,
at times to the original owners, for fractions of their fair
market value. AMP Ports representatives suggested that, to
promote effective operations, authorities should dredge the
harbor to 13 meters regularly, enforce existing customs laws,
and improve infrastructure, including roads and power.
Meeting participants also learned that a Chinese company won
the tender for expansion of Lagos Port.
8. (SBU) Pfizer representatives at the ABC meeting remarked
that 50 percent of pharmaceuticals in Nigeria were fake, with
all fakes coming through the ports. Efficient inspections in
Amsterdam prevented additional fake pharmaceutical products
from entering from India to Nigeria.
--------------
SEIZURE OF WEAPONS TRUCK IN ABUJA
--------------
9. (SBU) Nigerian Police officials confirmed to us that they
intercepted a truck loaded with weapons at Jabi Motor Park in
Abuja. Police determined that the weapons belonged to the
Nigeria Union of Road Transport Workers (NURTW). Federal
Capital Territory (FCT) police arrested and detained about 36
NURTW members, who remained under interrogation by the
Criminal Investigation Department (CID). Authorities
impounded the truck and its cargo in the FCT Command pending
further investigation on the weapons, source. Police, who
had reportedly become aware of a burgeoning conflict during
the past month between NURTW members and non-union workers in
Jabi Motor Park, quickly intervened to prevent violence.
--------------
OPPOSITION CANDIDATE WINDS SPECIAL ELECTION
--------------
10. (U) The Independent Nigerian Electoral Commission (INEC)
declared that opposition Action Congress (AC) candidate Kabir
Adjoto won a special election August 22 for a House of
Assembly seat in the Akoko-Edo constituency. Last July, the
Federal Appeals Court upheld a lower court ruling that
violence and irregularities had marred the April 2007
election of ruling People's Democratic Party (PDP) legislator
Anselem Agbabi, and ordered INEC to conduct a new election
ABUJA 00001591 003 OF 003
within 90 days. The PDP rejected Adjoto's victory and vowed
to seek court redress, alleging that AC thugs had disrupted
the election by using dangerous weapons to frighten away
voters. Governor Adams Oshiomhole countered that the PDP
lost because it could not rig this special election as
occurred in 2007. With Adjoto's victory, the AC increased
its seats in the 24-member Assembly to 10, while the PDP
seats dropped to 12 members. Two cases remained pending
before the courts.
--------------
ISLAMIC COMMUNITY MEETS AT CG LAGOS
--------------
11. (U) Lagos Consul General hosted an Iftar dinner August 26
for members of the Islamic community, including scholars,
imams, prominent businessmen, and civil society leaders.
Leading Islamic scholar and Muslim Rights Concern (MURIC)
Director, Professor Is-haq Akintola, declared that "Islam is
a religion of peace; Islam gives life." He categorically
rejected Islam's association with terrorism, adding that the
United States did what Islamic nations should do -- leading
the world in charity and assistance to the poor. Professor
Khalid Adekoya condemned Boko Haram as anti-Islamic,
reminding guests that Islam admonished all followers to seek
knowledge "even to the ends of the earth." H argued that
Boko Haram directly contradicted Islamic teachings. Other
participants, including a representative of Catholic Cardinal
Anthony Okogie, expressed appreciation to CG for the chance
to meet with Muslim community leaders in a warm, congenial
setting.
--------------
CONGRESSWOMAN VISITS USAID PROJECTS
--------------
12. (SBU) U.S. Congresswoman Sheila Jackson Lee visited two
projects supported by the U.S. Agency for International
Development (USAID) during her August 19-20 visit to Nigeria.
At the first project, Representative Jackson Lee met with
staff and patients at Saint Mary's Catholic Hospital, which
provided free HIV/AIDS comprehensive care to infected persons
with support from the President's Emergency Plan for AIDS
Relief (PEPFAR). At the second project, she toured an
International Institute of Tropical Agriculture (IITA) field
station supported by the Global Food Security Response
initiative. The field station provided farmers, including
many women, with high-yielding, disease-
resistant varieties of cassava, rice, and maize. Farmers
praised the USAID-supported model, which allowed them to
triple incomes and productivity. Local media covered the
Congresswoman's remarks, which highlighted U.S. support for
food security, electoral reform, and good governance.
MCCULLOUGH