NIGERIA: BI-WEEKLY POL/ECON UPDATES FOR MAY 16-31, 2009

UNCLAS SECTION 01 OF 03 ABUJA 000968 SENSITIVE SIPDIS DEPARTMENT PASS TO USTR-AGAMA BAGHDAD FOR DMCCULLOUGH DOE FOR GPERSON, CHAYLOCK LABOR FOR SHALEY DEPARTMENT PASS TO USAID USDA/FAS/OTP FOR MCKENZIE USAID/AFR FOR ATWOOD E.O. 12958: N/A TAGS: PGOV ECON ELAB EPET EFIN NI SUBJECT: NIGERIA: BI-WEEKLY POL/ECON UPDATES FOR MAY 16-31, 2009 ABUJA 00000968 001.2 OF 003 Ref: ¶1. (U) The following is a joint Embassy Abuja, ConGen Lagos compilation of May 16-31, 2009 political/economic highlights, which did not feature in our other reporting, covering: --Economic News --Health --Environment --Political News ECONOMIC NEWS -------------- ¶2. (U) FG TO REVIEW CBN's SELECTION FOR ADMINISTERING 200 BILLION NAIRA ($1.3 TRILLION) AGRIC FUND: The Central Bank of Nigeria had initially mandated that two commercial banks will administer the disbursement of $1.3 trillion commercial agriculture fund, United Bank of Africa (UBA) and First Bank of Nigeria (FBN). During an interview with News Agency of Nigeria on May 18, 2009, the Minister of Agriculture and Water Resources mentioned that GON intends to review the policy due to complaints by other commercial banks on the selection process used by CBN. Minister mentioned the importance of reaching farmers by providing funding through a number of banks. ¶3. (SBU) SINGAPORE AIRLINES CLOSE TO AN AGREEMENT WITH THE GON TO BEGIN FLIGHTS TO LAGOS: On May 29, Lagos Consul General met with Sabbir Hassanbhai, Singapore's High Commissioner to Nigeria (not resident) and Harish Aswani, Honorary Consul General. Hassanbhai told the Consul General that current recession has demonstrated Singapore's over reliance on a few trading partners and the country wants to diversify its trading network to include more African nations. However, he remarked that Singaporean businessmen tended to be complacent and comfortable in Asian and American markets and many were reluctant to do business in Africa. The High Commissioner noted that Singapore Airlines was close to concluding an agreement with the GON to begin flights to Lagos, possibly with an intermediate stop in India. As quid pro quo, he thought the GON would insist on a code sharing arrangement with an unnamed Nigerian airline. Singapore has a small but robust exchange program with the GON, including training for city planning and aviation. ¶4. (U) INTERNATIONAL STAKEHOLDERS' SUMMIT ON COUNTERFEITING AND PIRACY: The Nigeria Customs Service (NCS) on May 26 and 27 held an international stakeholders' summit on counterfeiting and piracy that brought senior customs officers in touch with other Nigerian regulatory bodies, the private sector, and the diplomatic community. On behalf of the Consul General, EconOff delivered a speech that praised the work of the NCS and promised the U.S. Mission's continued assistance on intellectual property rights (IPR) that will include training in June at Nigeria's chief points of entry. The Economic and Commercial Counselor of the Chinese Embassy, Rong Yansong, delivered a similar message in support of Nigerian efforts to enforce copy rights, violations of which he said undermined Chinese commercial interests in Nigeria. Coming on the heels of a U.S. Department of Justice IPR workshop in April, the summit helped to maintain momentum in the fight against piracy and counterfeiting. HEALTH -------------- ¶5. (U) WHY POLIO IS STILL PRESENT IN NIGERIA: The Minister of Health recently identified some of the constraints that fuelled the wild polio virus (WPV) in the country. The Minister spoke at the 62nd session of the World Health Assembly (WHA) on May 19 2009 and explained why the country still harbors the WPV despite progress. He cited the lack of consistency in Supplemental Immunization Activities (SIAs) across the state and Local Government Area; absence of target children from homes during campaign; lack of parental/caretaker consent and poor logistics for the vaccination ABUJA 00000968 002.2 OF 003 team to reach all in some parts of the country as reasons why polio is still present in Nigeria. The Minister asserted that political will and determination will eradicate polio from Nigeria. ¶6. (U) ROLL BACK MALARIA PARTNERSHIP STARTS ITS BED NET DISTRIBUTION IN NIGERIA: On May 8, the Nigerian National Malaria Control Program (NMCP),with support from U.S. Aid for International Development (USAID) and other donors under the Roll Back Malaria Partnership program, launched the first wave of a national bed net distribution campaign designed to reduce by half the number of malaria deaths in Nigeria over the next few years. If successful, the campaign could have significant impact on Africa's overall malaria burden, according to a report by the World Bank. (Note: Nigeria, with Africa's largest population (estimated at 160 million) and over 300,000 deaths each year, bears the highest malaria burden in the world. End Note.) The campaign, which lasted from May 3-17 in Kano State, saw the distribution of 2 million long-lasting insecticidal bed nets (LLIB) covering 44 local government areas (LGAs). According to the NMCP, the campaign aims to reach 80% of all households by the end of 2010 and will be conducted in all 36 states of Nigeria. The second phase of the campaign will focus on replacement of torn or worn out nets as well as distribution to new family members via routine health services, free or subsidized distribution through community-based organizations, and subsidized or full-cost distribution via the commercial sector. The Mission will monitor the campaign's progress and report accordingly. ENVIRONMENT -------------- ¶7. (U) BUILDING NIGERIA'S RESPONSE TO CLIMATE CHANGE: On May 27, Building Nigeria's Response to Climate Change (BNRCC),a project funded by the Canadian International Development Agency (CIDA),held a roundtable discussion with members of the Government of Nigeria, civil society, and academia on the impacts of climate change on Nigeria and possible response strategies. The primary goal of the BNRCC is to help Nigeria adapt to current and anticipated effects of climate change. BNRCC aims to meet this goal by sponsoring studies on Nigeria's vulnerability to climate change, identifying possible adaptation actions, piloting these actions in Nigeria's most vulnerable communities, and assisting the government in developing a comprehensive, sustainable and gender sensitive national strategy for climate change. Participants from the Government of Nigeria, civil society, and donors received presentations on the BNRCC's efforts to date, including its advocacy work with the government and the public and various studies that it has commissioned on climate change and adaptation strategies. BNRCC's work is particularly geared to identifying and developing gender-sensitive adaptation strategies, as women in rural areas are most negatively impacted by drought, deforestation, and other natural and manmade disasters. Most NGOs complained about the lack of clear coordination within the GON on climate change, putting the blame on the Ministry of Environment (MOE) by ceding the issue to the Nigerian National Petroleum Company (NNPC). (Comment: The Group Managing Director of the NNPC was co-chairman of the Nigerian delegation at the Kyoto negotiations. In addition, the NNPC has the resources and savvy among contending parties to articulate its interests on climate change issues and pursue them. End Comment.) Some at the roundtable argued that the MOE is one of the least funded GON agencies and said that it lack strong environmental advocate at the helm. They said that although the climate change negotiations at Copenhagen are about six months away, there is no clear mechanism by the GON to develop a unified position for Nigeria. This, however, was contested by a representative of the MOE's Climate Change Unit who disclosed that the Ministry will be hosting a meeting of all relevant parties on June 8 to start developing Nigeria's negotiating points for Copenhagen, which will require approval by the Nigerian Federal Executive Council. We will continue engaging GON and environmental advocacy groups to learn about and report any movement on the GON's positions for the Copenhagen negotiations. ABUJA 00000968 003.2 OF 003 POLITICAL NEWS -------------- ¶8. (U) ISLAMIC GROUPS LAMENT POOR IMPLEMENTATION OF SHARI'A: Noting the 10th anniversary of democracy in Nigeria, Islamic leaders in Zamfara State reportedly expressed dismay over the poor implementation of Shari'a laws in the state. According to press reports, the spokesman for the Islamic groups, Sheik Ahmad Umar Kanoma said that the state government is compromising its stance on Shari'a and that as a result social vices have resurfaced in their communities. Kanoma called on the state to urgently dismantle youth political offices (which he claimed were "sheds" used by young people for drinking and sex) and to commence the erection billboards with Islamic inscriptions, and to equip the Hisbah (Shari'a Police) and give them freehand to operate. ¶9. (U) VIOLENT PROTESTS IN ZARIA: On May 25 a demonstration organized by city youth in Zaria to protest three months of power outage turned violent. Local press claimed that four people died and an additional 20 were injured. However, Deputy Commissioner of Police of Kaduna State, Isaac Eke claimed that the police did not use guns on the protesters and denied that anyone had died as a result of the protest. At least 60 people were arrested in connection to the violence. ¶10. (U) VICE PRESIDENT MARKS DEMOCRACY DAY: At an interdenominational church service to celebrate `"Democracy Day'" Vice President Goodluck Jonathan said the government of President Umaru Yar'Adua was worried about the country's electoral process and would do everything possible to put things right. Also in the service, the General Secretary of the Christian Association of Nigeria, Samuel Salifu called on GON to fully implement the recommendations for electoral reform made by the Electoral Reform Committee under former Justice Uwais. Specifically he said that the Independent National Electoral Commission must be reorganized in order to have credible electoral reforms.