NIGERIA: BI-WEEKLY POL/ECON UPDATES FOR FEBRUARY 14-28,

UNCLAS SECTION 01 OF 04 ABUJA 000483 SENSITIVE SIPDIS DEPARTMENT PASS TO USTR-AGAMA BAGHDAD FOR DMCCULLOUGH DOE FOR GPERSON, CHAYLOCK LABOR FOR SHALEY USDA/FAS/OTP FOR MCKENZIE DEPARTMENT PASS TO USAID/AFR FOR ATWOOD E.O. 12958: N/A TAGS: PGOV ECON ELAB EPET EFIN EAGR KDEM NI SUBJECT: NIGERIA: BI-WEEKLY POL/ECON UPDATES FOR FEBRUARY 14-28, 2009 REF: A) 08 Lagos 505 ABUJA 00000483 001.4 OF 004 (U) The following is a joint Embassy Abuja, ConGen Lagos compilation of February 14-28 political/economic highlights, which did not feature in our other reporting, covering: --National Assembly --Oil and Gas --Niger Delta --Economic and Business News --Health -------------- National Assembly -------------- ¶1. (U) HOUSE OF REPS COMMITTEE ON INTERNATIONAL DONORS AND CIVIL SOCIETY ORGANIZATIONS INAUGURATED: On February 10 Poloff, EconOff, and Econ Specialist attended the Inauguration of the House of Representatives Committee on International Donors and Civil Society Organizations (CSOs). In her address, Committee Chair Nnenna Ukeje explained that the newly formed committee is responsible for engaging with international donors and CSOs to achieve national development goals and will provide financial oversight to ensure transparency and accountability on the part of civil society, while at the same time ensuring donor confidence. Ukeje emphasized the need to synchronize grant money with the government's budgetary projections and development priorities. She said that Nigerian citizens must play a key role in program development and not just act as "foot soldiers to carry out decisions reached by international donors." ¶2. (U) The Special Advisor to the President on International Affairs, Ken Saro-Wiwa Jr., made a brief address in support of the committee and said the President's office is planning a roundtable and a consortium of CSOs. (Note: Ken Saro-Wiwa Jr. is the son of the famed Nigerian environmental activist from the Delta, Ken Saro-Wiwa Sr., who was executed in 1995 by the then military government for alleged involvement in the killing of four tribal leaders. End Note.) House Speaker Dimeji Bankole announced plans for the House to amend the National Planning Act in order to make it more effective and responsive to the nation's needs. The Speaker echoed Ukeje's criticism of the current system saying, "people who make the decisions concerning projects and needs are too far removed from the people who should benefit from them.' ; ¶3. (U) HOUSE SUSPENDS A REPRESENTATIVE: On February 26, the House of Representatives suspended Representative Independence Ogunewe (PDP, Imo State) for fourteen legislative days, removed him from his position as Chairman of the House Committee on Cooperation and Integration in Africa, and prohibited his membership on any additional committees. He was suspended for disorderly conduct during a plenary session. Press reports indicate that he was moving about the room conversing with colleagues and when repeatedly asked to take his seat said, "I have heard you" and walked out of the chamber. Ogunewe was recently named by the House Committee on Ethics and Privileges as one of five lawmakers who circulated documents alleging that House leadership had abused their authority to award a contract for the 2.3 billion naira (USD 15.6 million) purchase of 380 Peugeot 407 cars. As reported in 'Punch' newspaper on February 18, the Committee said these five individuals had deliberately attempted to misinform the public. The full report is expected from the committee next week. ¶4. (U) LAND USE ACT TO BE LIBERALIZED: It was announced on February 22 that President Yar'Adua had forwarded a bill to the National Assembly to amend the Land Use Act to relax the requirements for a state governor's consent for land transactions. The amendments will make such consent unnecessary for mortgages, subleases, and other transfers to make transactions less difficult and promote economic growth. Land assignments will still need gubernatorial approval. ABUJA 00000483 002 OF 004 -------------- STATE GOVERNMENT NEWS -------------- ¶5. (U) KANO STATE REVIEWS MOTORCYCLE TAXI REGULATIONS: The Kano State Government announced that it has set up a committee to review "okada" (motorcycle taxi) operations in the state. According to local press reports, the committee is expected to determine appropriate road signs, come up with penalties, and implement registration of commercial operators. Reportedly, protests in 2008 following the enforcement of a ban on transporting female passengers on okadas delayed the State from further restricting their use. ¶6. (U) "CULTIST" KILLINGS ON RISE IN EDO: According to press reports, at least 12 people were killed around Edo State in the week ending February 28, including an individual reputed to be an aide to the Deputy Governor. The Deputy Governor's Chief Press Secretary denied any professional relationship with the victim. A spokesman for the Edo State Police Command, while acknowledging a trend, maintained that there were "only six cultists-related killings" including four men and two women. ¶7. (U) OYO GOVERNORSHIP ELECTION UPHELD: On March 17, the Court of Appeal sitting in Ibadan upheld the election of Governor Adebayo Alao-Akala by dismissing the three appeals filed by opposition parties the All Nigeria Peoples Part (ANPP),the Republican Party of Nigeria (RPN) and the National Democratic Party (NDP). The court held that the filing was late and that the exhibits were not properly certified. -------------- Oil and Gas -------------- ¶8. (SBU) SHELL FIRES 9 NIGERIAN PIPELINE AND SPILL RESPONSE ENGINEERS: On February 15, Shell Petroleum Development Corporation fired nine Nigerian pipeline and spill response engineers for reasons it refused to disclose. Local press speculated the firings were in response to an explosion that killed several Shell staff and contractors working to repair a vandalized crude oil pipeline in Delta State. (ref A 08Lagos 505). -------------- Niger Delta -------------- 9.(U) No Americans were involved in incidents in the Delta. ¶10. (SBU) AGIP WORKER ACCIDENTALLY SHOT BY JTF SOLDIER: On February 25 an oilfield worker on an Aero Contractors helicopter was shot. Initial reports were that the helicopter, under contract to Agip, came under fire from militants while operating near the Ogbainbiri and Tebidaba oil facilities in Bayelsa State. However, a senior Shell logistics contact reported on February 28, that the injury was the result of an accidental weapons discharge by a Joint Task Force (JTF) soldier inside the helicopter. According to the contact, Aero and Agip have temporarily banned JTF soldiers from their helicopters. ¶11. (U) BAYELSA'S NEMBE FLOW STATION, YENAGOA AGIP TERMINAL HIT: On February 18, the Nembe Flow Station in Bayelsa State was attacked by armed men according to the press. No hostages were taken and there were no report of injuries or damage. On February 21, the Agip terminal in Yenagoa, Bayelsa State was attacked. There were no injuries or damage to the facility according to the local press. Press reports also indicate that on February 24 a Russian oil tanker was attacked by armed men in speed boats; the tanker managed to outrun the attackers. No injuries or damage were reported. ¶12. (U) DELTA POLITICO'S DAUGHTER KIDNAPPED: According to the media, the daughter of a Delta State government official was kidnapped February 19 in Asaba, Delta State. The motives appear to have been criminal. ABUJA 00000483 003 OF 004 -------------- Economic and Business News -------------- ¶13. (SBU) AIR TRAFFIC STRIKE ABORTED: Nigerian press reported on February 22 that the National Association of Air Traffic Engineers (NAAE) would lead a strike over salary disparity and pay arrears on February 26. After negotiations between the Ministry of Aviation and the workers, the strike was called off on February 25. 14.(SBU) NO CONTAINER SHIP SLOTS AVAILABLE UNTIL MID-APRIL: As a temporary solution to clear congestion at the ports, the Nigerian Port Authority (NPA) announced on February 20 that it would not accept new ship entry applications for container vessels to berth at Lagos ports until mid-April. The NPA is considering diverting vessels already approved for Lagos to other Nigerian ports. Doug Smith, Director of Terminal Operations, APM Terminals Apapa Ltd., told EconOff on February 26 that terminal operators do not believe this suspension will alleviate the congestion and that terminal operators will face periods of idle berths while vessels sit at anchor offshore, Smith said. Douglas Berkheiser, Maersk Supply Services, told EconOff Feb 27 that Maersk is lobbying the Minister of Transportation to reverse the decision to suspend applications. (Comment: Costs to terminal operators from having idle berths will be significant. The NPA's sudden announcement speaks to the ad-hoc nature at which the authorities are going about solving the issue of port congestion. End Comment) ¶15. (U) GON REORGANIZES THREE AVIATION PARASTATALS: The Director of the Nigerian Civil Aviation Authority (NCAA) Dr. H. O. Demuren told EconOff on February 20 that the Government of Nigeria (GON),in an attempt to improve service delivery and performance, is in the process of reorganizing and restructuring the three parastatals under its umbrella: the Nigerian Airspace Management Agency (NAMA), the Nigerian Civil Aviation Authority (NCAA),and the Federal Airports Authority of Nigeria (FAAN). Under the reform plan, the Managing Director of NAMA has been replaced by Alhaji Ibrahim Auyo. In addition, eleven directors from the three parastatals are to be redeployed within the government and new directors are being named. Demuren is hopeful that the reforms will result in improved service delivery and performance. ¶16. (U) GON EARMARKS N250 BILLION TO HELP NIGERIAN FARMERS: According to media reports, the GON has earmarked N250 billion (roughly USD 1.7 billion) in its 2009 budget to help Nigerian farmers increase their productivity and cope with the effects of the global economic slowdown. The grant will be administered by the Central Bank of Nigeria and is expected to enhance food security in the short term. ¶17. (U) NIGERIA, RSA CONSULT ON GLOBAL ECONOMIC DOWNTURN: On February 24, Nigeria and South Africa formally inaugurated a 10-person Joint Presidential Advisory Council on Investment (JPACI). The council's members are drawn from both the public and private sector and will be advising the leaders of the two countries in tackling the effects of the global economic slowdown. In a joint press conference, Nigerian Vice President Goodluck Jonathan and South African Deputy President Baleka Mbete stated that the two countries will pursue economic recovery through business cooperation and investment promotion. -------------- HEALTH -------------- ¶18. (U) NIGERIAN HOUSE OF REPRESETATIVES CALLS FOR EMERGENCY ACTION ON OUTBREAK OF LASSA FEVER AND MENINGITIS: Nigerian media have reported that close to 300 people, including 5 medical doctors (reportedly infected while treating patients) have died from outbreaks of Lassa fever and meningitis in various states. On March 25, the House of Representatives adopted a motion calling for emergency action on the outbreak of the two diseases. Widespread ignorance about the diseases, poor personal hygiene, and the absence ABUJA 00000483 004 OF 004 of community-based detection, warning and diagnosis centers are identified as main challenges to halting the outbreaks. The U.S. Center for Disease Control (CDC) is assisting the Ministry of Health in investigating and evaluating treatment responses. ¶19. (U) U.S. FUNDED AVIAN INFLUENZA LABORATORY INAUGURATED: On February 13, Ambassador Sanders and GON Minister of Health, Prof. Babatunde Oshotimehin, jointly commissioned a state-of-the-art avian influenza diagnostic laboratory located in Asokoro District Hospital, Abuja. The laboratory will strengthen Nigeria's diagnostic and intervention capacity against the global threat of an avian influenza pandemic. SANDERS