NIGERIA: AMBASSADOR DISCUSSES AGRICULTURE OPPORTUNITIES

UNCLAS LAGOS 000175 SIPDIS FOR GABORONE PASS PDROUIN STATE PASS OPIC FOR DERB, ZHAN, MSTUCKART, JEDWARDS STATE PASS TDA FOR LFITTS, PMARIN STATE PASS USAID FOR NFREEMAN, GBERTOLIN, GWEYNAND STATE PASS EXIM FOR JRICHTER, KJACKSON DOC FOR 3317/ITA/OA/KBURRESS DOC FOR 3310/USFC/OIO/ANESA/DHARRIS DOC FOR USPTO-PAUL SALMON E.O. 12958: N/A TAGS: EAGR EIND EAID NI SUBJECT: NIGERIA: AMBASSADOR DISCUSSES AGRICULTURE OPPORTUNITIES UNDER AGOA WITH OYO STATE GOVERNOR ¶1. (U) Summary: During a visit to Oyo State on March 25, Ambassador engaged Oyo State Governor Alao Akala (PDP) on his plan to build up the state's agricultural base. Governor Akala wants the agriculture sector to be the key industry in Oyo's industrial development, and he plans to float a "Pasture to Farm" company to promote industrial farming. Ambassador informed Governor Akala of the June 2009 U.S. Mission-sponsored agriculture workshop that will focus on agricultural financing and exports so that Nigeria can take better advantage of AGOA. The workshops will take place in Lagos and will involve all stakeholders, namely Nigerian commercial banks as financiers, agro-businesses and farmers as exporters, and USG agencies such as Ex-Im and TDA as facilitators. Ambassador also apprised Governor Akala of her conversation with the Chairman of the Southwestern states' economic group called Odua'a, when seeking to promise development and trade for the region. She noted that Odu'a supported the public private partnership project between U.S. Mission and Odu'a for AGOA workshops in Nigeria's five Southwestern states. Ambassador also congratulated Governor Akala on the March 17 Federal Appeals Court's ruling that confirmed Akala's victory in the 2007 gubernatorial election. End summary. Oyo Focuses on Agriculture as Industrial Base -------------- ¶2. (U) On her visit to Oyo State on March 25, Ambassador engaged Oyo State Governor Alao Akala on his economic development plan for the state. Governor Akala said his focus would be on the agricultural sector as the basis for industrial development in Oyo. He wants to promote industrial farming and the export of fresh as well as processed produce. Oyo State Government will float the project "Pasture to Farm" whereby a large area of Oyo's arable land will be converted to industrial farming. In response, Ambassador informed him that the U.S. Mission is very much focused on agriculture as a result of the Global Food Security program and will be involved in a PPP in June that focuses on agricultural financing and exports. ¶3. (U) Ambassador also apprised Governor Akala of her discussion with Odu'a Investment Company on the possibility of holding an inter-state agriculture workshop for five Southwestern states focused on AGOA. (Note: Odu'a Investment Company was incorporated in 1976 to manage the business interests of five Western states in Nigeria, namely Oyo, Ogun, Ondo, Osun, and Ekiti. End Note) Odu'a's idea for the workshop is to focus on getting agro-businesses and medium to large-size farmers export-ready under AGOA. In addition, the Ambassador informed the Governor about the June agriculture PPP in Lagos on financing, capital equipment, and technical assistance. She asked Governor Akala to identify appropriate stakeholders for this workshop, including Oyo government officials, agro-business leaders, and farmers. For his part, Governor Akala said he has vision for more trade in agriculture with the United States, and Oyo State is working with the Foreign Commercial Services to purchase farming equipments. Akala Moving Forward with Appeals Court's Confirmation -------------- -------------- ¶4. (U) Ambassador congratulated Governor Akala on the March 17 Federal Appeals Court's ruling confirming his victory in the 2007 gubernatorial election. Governor Akala said with the Appeals Court decision he can finally move forward with his economic development plan. ¶5. (U) Comment: Governor Akala's vision of building up the agricultural sector exemplifies the growing awareness of the need to diversify Nigeria's economy, especially with declining oil prices and the global credit crunch. The U.S. Mission is ramping up efforts to assist the agriculture sector in building up its capacity and becoming export-ready to take advantage of AGOA. End Comment. ¶6. (U) This cable was cleared with Embassy Abuja. Blair