Identifier
Created
Classification
Origin
09ABUJA1822
2009-10-02 17:20:00
CONFIDENTIAL
Embassy Abuja
Cable title:  

NIGERIAN NUGGETS -- OCTOBER 2, 2009

Tags:  PGOV PREL EFIN EMIN PHUM PINR KTIP NI 
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DE RUEHUJA #1822/01 2751720
ZNY CCCCC ZZH
P 021720Z OCT 09 ZDK ZDK NUMEROUS REQUESTS
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 7145
INFO RUEHZO/AFRICAN UNION COLLECTIVE PRIORITY
RUEHZK/ECOWAS COLLECTIVE PRIORITY
RUEHSA/AMEMBASSY PRETORIA PRIORITY 2100
RUEHYD/AMEMBASSY YAOUNDE PRIORITY 1045
RUEHOS/AMCONSUL LAGOS PRIORITY 2038
RHMFISS/HQ USAFRICOM STUTTGART GE PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
RHEHNSC/NSC WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RUEKDIA/DIA WASHDC PRIORITY
RHMFISS/HQ USEUCOM VAIHINGEN GE PRIORITY
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 ABUJA 001822 

SIPDIS

STATE FOR AF/FO, AF/W, INR/AA;
USAID/AFR/WA DALZOUMA

E.O. 12958: DECL: 09/28/2019
TAGS: PGOV PREL EFIN EMIN PHUM PINR KTIP NI
SUBJECT: NIGERIAN NUGGETS -- OCTOBER 2, 2009

ABUJA 00001822 001.2 OF 003


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 001822

SIPDIS

STATE FOR AF/FO, AF/W, INR/AA;
USAID/AFR/WA DALZOUMA

E.O. 12958: DECL: 09/28/2019
TAGS: PGOV PREL EFIN EMIN PHUM PINR KTIP NI
SUBJECT: NIGERIAN NUGGETS -- OCTOBER 2, 2009

ABUJA 00001822 001.2 OF 003


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 not
reported previously.

--------------
NIGERIA STRIVES FOR FAA CATEGORY ONE RATING
--------------


2. (SBU) Nigeria continued efforts to achieve a U.S. Federal
Aviation Administration Category One rating that would allow
Nigerian carriers to establish routes from Nigeria to the
United States. The Nigerian Federal Airports Authority
staged a first-ever Ramp Safety Week to promote a safety
culture that would reduce incidents and accidents on the
ramps. The week ended with an award ceremony at which the
Ambassador accepted an award on behalf of the Mission in
recognition of U.S. support for aviation safety and security.
Since November 2008, the Mission has sponsored three public
private workshops on aviation safety and security.

--------------
NEW BANKNOTES
--------------


3. (SBU) The Central Bank of Nigeria (CBN) introduced new
five, ten, and fifteen naira polymer banknotes into
circulation September 30 to coincide with Nigeria's
anniversary of independence the next day. The new notes
retain current designs but include enhanced security
features. Existing paper notes of these denominations will
circulate concurrently with the new polymer notes until March
31, 2010. Banks established exchange windows to allow the
public to exchange old notes for new ones.

--------------
FIFTEEN BANKS TO EMERGE AFTER REFORMS
--------------


4. (SBU) CBN Deputy Governor for Operations Tunde Lemo told
the public to expect that Nigeria's banks will decline from
24 to 15 after enactment of reforms. Explaining that the
banks' major shortcoming involved false data reporting, he
emphasized the value of providing stakeholders with

information on their true financial positions, which would
allow individuals to make informed decisions and reduce risks
that could lead to loss of confidence. He emphasized the
importance of sound corporate governance and compliance with
best practices and international standards.

--------------
NIGERIA TO GRANT NEW MINING LICENSES
--------------


5. (SBU) The Nigerian Government (GON) planned to increase
issuance of new mining licenses and review existing ones as
part of efforts to revive the moribund mining sector,
according to the press. Mines Minister Diezani Alison
Madueke said during a speech at the London Stock Exchange
that this initiative, set to conclude by the end of October,
complemented GON efforts to diversify the economy away from
oil and gas towards agriculture, food processing, and mining,
resulting in new jobs for the country's young population.
(N.B.: Half of Nigeria's estimated 150 million people is
under the age of 15, a percentage expected to increase
Qunder the age of 15, a percentage expected to increase
significantly during the next 20 years. End Note.) The
Mission hosted a minerals team from Embassy Pretoria to help
assess Nigeria's mining potential and encourage possible
future U.S. investment.

--------------
NNPC ASSURES AN ADEQUATE FUEL SUPPLY
--------------


6. (SBU) The Nigerian National Petroleum Corporation (NNPC)
assured the public September 25 that petroleum products would

ABUJA 00001822 002.2 OF 003


remain widely available. NNPC dismissed rumors that banking
reforms are hurting importation of the petroleum products due
to lack of ability and willingness by banks to provide credit
facilities.

--------------
CHINESE SEEK HUGE STAKE IN NIGERIAN OIL
--------------


7. (SBU) China National Offshore Oil Corporation (CNOOC),the
state-owned Chinese oil conglomerate, reportedly seeks to
acquire six billion barrels of oil -- equivalent to one-sixth
of Nigeria's proven reserves, according to press reports and
some industry contacts. The bid for oil blocks could put the
Chinese into competition with western oil groups, including
Shell, Chevron, Total and ExxonMobil, which operate the 23
oil blocks under discussion. Sixteen licenses are up for
renewal, while licenses for two blocks (Shell's Bong field
and Chevron's Agbami filed) will expire in 2023 and 2024,
respectively. A presidential spokesperson said that
negotiations are ongoing with all stakeholders.

--------------
AIRPORT OPENS IN AKWA IBOM
--------------


8. (SBU) An Arik Airlines Boeing 737 plane made an inaugural
flight September 23 to the newly constructed Ibom
International Airport (IIA) in the Okop-Edi community of Akwa
Ibom, becoming the first aircraft to land in this state.
Governor Godswill Akpabio, prior Governor Obong Victor Attan,
Niger Delta Affairs Minister Ufot Ekaette, and People's
Democratic Party leaders witnessed the event. Work on the
IIA began in November 2005 when U.S. company DynCorp
International won a contract to build the USD 200 Million
facility with a 3,600-meter runway, a four-gate terminal
building, and a maintenance-repair-overhaul (MRO) hanger.
DynCorp terminated the contract for cause in 2008. IIA
represents the third airport to open in the south-south
region, after Port Harcourt and Calabar. The state
government lauded the MRO as IIA's main selling point. Lagos
and Ogun states also plan to build international airports in
the southwest.

--------------
CHINESE NATIONAL DAY
--------------


9. (SBU) An estimated 300 persons attended China's sixtieth
national day celebration at the Oriental Hotel on Lagos'
Victoria Island, including Chinese nationals from
construction companies (Fed Steel and CECC) and various oil
companies (Sinopec). Chinese organizers tried to open a
PowerPoint presentation, apparently with a non-licensed
version of the software. Instead of opening the
presentation, a screen appeared that requested a license key,
and organizers gave up on showing the presentation.

--------------
USAID SPEARHEADS CUSTOMS REFORM
--------------


10. (SBU) USAID and implementing partner MARKETS met leading
Nigerian advocates of customs reform, including Customs
Comptroller General Abdullahi Dikko, to discuss customs
modernization and trade facilitation. USAID and MARKETS
successfully advocated an audit of service contracts for
Qsuccessfully advocated an audit of service contracts for
assessing the effectiveness of third-party cargo inspection
services, a task normally forming part of the Customs
Service's core functions. MARKETS will analyze revenue
earned under the current contracts, and the possible impact
on revenue after these services come back the Customs Service
after contracts expire in 2012. The project will analyze a
draft Customs and Excise Management Act (CEMA) for compliance
with the Revised Kyoto Convention and World Customs
Organization SAFE Framework of Standards. The GON plans to
introduce to the National Assembly early next year an amended
CEMA that complies with international standards.

ABUJA 00001822 003 OF 003



--------------
ASUU, STUDENTS PROTEST SEEK PUBLIC SUPPORT
--------------


11. (SBU) Niger Delta University (NDU) students and Academic
Staff Union of Universities (ASUU) members staged a peaceful
rally September 23 in Bayelsa State, protesting GON failure
to honor commitments to professors and public universities.
Students and professors described Nigeria's education system
as deplorable and on the verge of collapse. NDU ASUU
Chairman Dr. Initimiebi Ogidi told hundreds of students the
union would remain resolute in its struggle until desired
changes occurred. The National Association of Nigerian
Students (NANS) and Education Rights Campaign (ERC) announced
plans to hold subsequent protests in Lagos and Edo states.
ERC National Coordinator Hassan Taiwo Soweto told local press
that they expected a "large turn-out." Soweto disclosed that
the rallies would be a "prelude" to another protest in Abuja
after the National Assembly returned from recess. Nationwide
public university strikes have entered their third month,
effectively shutting down public higher education across the
country.

--------------
TIP AWARENESS EVENT SPOTLIGHTS GIRLS
--------------


12. (SBU) The National Agency for Prohibition of Trafficking
in Persons sponsored Nigeria's first mini-marathon for
under-17 youth September 26 in Edo State, the state with the
highest incidence of persons trafficked out of the country.
The public awareness event provided prizes, including
educational and skills acquisition grants, computers, and
bicycles. The top prize of 2,250 dollars went to the girl
who finished first, while the top boy finisher received a
lesser prize of 1,950 dollars. The prize differential
reflected the higher incidence of girls being trafficked.

--------------
CIVIL SOCIETY DISSATISFACTION IN OSUN
--------------


13. (C) Osun State Coalition Against Rights Violations
(OSCARV) in Oshogbo told PolOff September 22 that they
routinely suffered harassment from police and detention for
days, sometimes weeks, without cause, usually with the
complicity of unethical magistrates who adjourned their cases
to keep them in legal "limbo." The activists alleged that
Osun State had no running tap water because government
officials, including the governor, owned bottled and sachet
water businesses. They expressed pessimism about prospects
for an end to the strike by university professors, noting
that most elites sent their children overseas for studies,
and several former public officials and military rulers owned
private schools and universities. They criticized the
governance and priorities of Governor Oyinlola, noting that
the Osun State budget devoted only five percent of funding to
health programs, while the World Health Organization
recommended a minimum of 15 percent.

-------------- --
ELDER BANKOLE RULES OUT SON'S GUBERNATORIAL BID
QELDER BANKOLE RULES OUT SON'S GUBERNATORIAL BID
-------------- --


14. (C) Chief Alani Bankole, father of Federal House of
Representatives Speaker Dimeji Bankole, told PolOffs in
Abeokuta September 24 that his son would not receive any
support from the family if he ran for Governor. The Chief
declared that "easy oil wealth had destroyed Nigeria,"
particularly agriculture and people's work ethics.


15. (U) Embassy Abuja and Consulate General Lagos
collaborated on this telegram.

MCCULLOUGH