NIGERIA: AMBASSADOR DISCUSSES AGRICULTURE AND LOCAL

UNCLAS SECTION 01 OF 02 LAGOS 000176

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 AND LOCAL
POLITICS WITH OSUN STATE GOVERNOR

Septel


1. (U) Summary: During her visit to Osun State on March 25,
Ambassador engaged Osun State Governor Olagunsoye Oyinlola (PDP) on
his plan to develop the agricultural sector. Governor Oyinlola said
a Free Trade Zone will be set up to promote agro-businesses and
exports. He also said Osun State is striving to develop a solid
mineral industry and tourism sector. Ambassador noted that she had
recently met with the Chairman of the Odu'a Group who wishes to do
an inter-state Africa Growth and Opportunity Act (AGOA) workshop
focused on agriculture. She also mentioned the upcoming public
private partnership (PPP) on the agricultural sector that will focus
on financing, capital equipment, and technical assistance by EXIM,
FAS, USCS, and USTDA. Turning to politics, the Ambassador also
raised political issues for Osun State in 2011, to which the
Governor noted that he will have already served two terms and that
the political playing field for governorship in his state is wide
open. End summary.

Osun Wants FTZ for Agro-Businesses
--------------


2. (U) Governor Oyinlola told Ambassador that there is no
alternative to developing the agricultural sector as the state's
economic base, and that Osun has moved forward with its plan to
establish a Free Trade Zone (FTZ) for that purpose. The FTZ would
focus on agro-businesses, particularly on the processing of cocoa
and palm oil products. Products from the FTZ would go to the local
market first, and only surplus would be exported, he said.

U.S. Mission to Promote Agriculture through PPPs
-------------- ---


3. (U) Ambassador informed Governor Oyinlola about the U.S.
Mission-sponsored agriculture workshop focusing on EXIM, USTDA,
USAID, and FAS and other USG agencies on financing, capital
equipment, and technical assistance in June 2009 in Lagos. She also
noted a recent meeting with Odu'a Investment Company on its desire
to hold an AGO workshop for five Southwestern states. (Note: Odu'a
Investment Company is an economic grouping incorporated in 1976 to
provide a framework for inter-state businesses between Oyo, Ogun,
Ondo, Osun, and Ekiti. End Note) The workshop will focus on getting
agro-businesses and medium to large-size farmers export-ready under
the African Growth and Opportunity Act (AGOA). Ambassador asked
Governor Oyinlola to identify appropriate stakeholders to this
process, including Osun state government officials, agro-business
leaders, and farmers.

Osun Hopes to Build Solid Mineral, Tourism Industries
-------------- --------------


4. (U) Governor Oyinlola said Osun State has solid mineral deposits,
including gold and tantalite, to be developed. In addition, Osun
State is home to two UNESCO-recognized sites, making tourism a
potentially profitable sector for the state.

Governorship Wide Open in 2011
--------------


5. (U) Governor Oyinlola told Ambassador he still awaits the Federal
Appeals Court's ruling on his 2007 election to office. He noted
that he will have served two terms by 2011, and the gubernatorial
election will be wide open. (Note: On March 30, the Federal Appeals
Court ordered a retrial of the petition against Governor Oyinlola
for alleged election irregularities that led to his victory in the
2007 gubernatorial election. The election tribunal dismissed the
petition in 2008, and upheld Oyinlola's election. End Note) Governor
Oyinlola hopes to continue his public service by running for the
Senate. He noted for Ambassador the political initiatives set in
place to make Osun more transparent, including a due process office
within the state government.


6. (U) Comment: Like its Western state neighbors, Governor Oyinlola
has ambitious plan to rebuild the agricultural sector in Osun State
through the establishment of an agro-focused FTZ. He understands the
benefits of AGOA and is eager to collaborate with the U.S. Mission
on agriculture-export promotion programs. A retrial of the petition
against Governor Oyinlola could take around one year, allowing him
time to serve nearly a full time. End Comment.


LAGOS 00000176 002 OF 002



7. (U) This cable was cleared with Embassy Abuja.

Blair