VZCZCXRO9315
PP RUEHMA RUEHPA
DE RUEHUJA #0441/01 0670757
ZNR UUUUU ZZH
P 080757Z MAR 07
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 8803
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 6284
RUEHWR/AMEMBASSY WARSAW 0146
RUEHCD/AMCONSUL CIUDAD JUAREZ 0144
RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 ABUJA 000441 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR AF/W (SILSKI) AND AF/EPS (POTASH) 
DEPARTMENT PASS TO USTR (AGAMA) 
 
E.O. 12598: N/A 
TAGS: ETRD AGOA ECON NI
SUBJECT: NIGERIA - 2007 PRESIDENT'S REPORT ON AGOA 
 
REF:  STATE 22438 
 
ABUJA 00000441  001.2 OF 002 
 
 
¶1.  In response to reftel, this cable contains Nigeria's submission 
for the 2007 President's Report on AGOA. 
. 
Market Economy/Economic Reform/Elimination of Trade Barriers 
--------------------------------------------- -------- 
. 
¶2.  The Nigerian government (GON) is working towards reducing the 
size of the government and increasing the private sector in the 
economy.  The GON has shown its commitment to privatizing state 
enterprises in 2006, by privatizing Nigeria Telecommunications Ltd 
(Nitel), and its mobile subsidiary, Nigerian Mobile 
Telecommunications Ltd (Mtel), and the only government-owned 
petrochemical company.  The GON also sold its interest in eight oil 
service companies.  Nigeria continued implementation of the ECOWAS 
Common External Tariff in 2006.  Nigeria's implementation of 
non-tariff barriers has been arbitrary and uneven and it continues 
to violate WTO prohibitions against trade bans.  However, the GON 
removed some textiles from its list of prohibited imports in 2006. 
Other barriers to trade are long delays in port clearances and 
sudden changes in product standards and methods of customs 
inspections.  Enforcement of criminal penalties against IPR 
violations is weak, and firms that are successfully countering IPR 
piracy generally have had to do so through civil court cases.  An 
amendment to the copyright and trademarks legislation that would 
create an intellectual property commission is expected to be 
submitted by the executive to the legislature for its consideration 
before the end of the first quarter of 2007. 
. 
Political Pluralism/Rule of Law/Anti-Corruption 
--------------------------------------------- -- 
. 
¶3.  General elections are scheduled for April 2007.  The elections 
with more than 35 political parties scheduled to participate, would 
usher in a new government and mark an end to President Obasanjo's 
eight year tenure.  Civil and criminal cases move slowly through 
Nigeria's courts.  The country's judicial system lacks the resources 
to function effectively.  In response to public demand, Shari'a 
(Islamic law) was established in 12 of Nigeria's northern states. 
The GON has taken steps to tackle corruption, such as establishing 
two anti-corruption commissions and announcing measures to improve 
fiscal responsibility in federal budgeting and procurement.  There 
have been allegations of selective enforcement of anti-corruption 
laws for political purposes.  Since the inception of these bodies, 
the government has won one conviction against a senior government 
official, obtaining a mild sentence.  There are corruption cases 
involving senior GON officials and state governors pending before 
various courts in the country.  In July 2006, Nigeria was removed 
from the Financial Action Task Force list of Non-Cooperative 
Countries and Territories. 
. 
Poverty Reduction 
----------------- 
. 
¶4.  The GON's economic reform program, the National Economic 
Empowerment and Development Strategy (NEEDS) is due for review in 
¶2007.  In 2006, Nigeria began a Policy Support Instrument (PSI) with 
the IMF.  The PSI is a new approach to economic monitoring by the 
IMF, and it is based on the country's ownership of its reform 
program.  Nigeria's NEEDS has had successful quarterly reviews by 
the IMF. 
. 
Labor/Child Labor 
----------------- 
. 
¶5.  The constitution recognizes the right of workers to join or form 
trade unions.  Restrictions on that right remain, despite the repeal 
of some of the anti-labor decrees from the military era.  A 2005 
amendment to the labor law further limited the conditions under 
which unions may undertake legal strikes.  Workers in Export 
Processing Zones may not join a union until 10 years after the 
anniversary date of the enterprise establishment.  Less than ten 
percent of the total workforce is organized.  Minimum wages, the 
length of the workday or workweek, and general health and safety 
provisions are statutorily mandated, but enforcement remains weak 
 
¶6.  Nigeria has ratified all eight of the International Labor 
Organization (ILO) core conventions including Convention 138 on 
minimum age and 182 on the worst forms of child labor.  Nigeria 
ratified the Convention on the Rights of the Child on April 16, 
1991, and the convention was adopted as a domestic law in September 
2003, but very few states have passed the Child Rights Act into law 
so far.  Nigerian law forbids forced or bonded labor and restricts 
 
ABUJA 00000441  002.2 OF 002 
 
 
the employment of children younger than 15 to home-based 
agricultural or domestic work for no more than eight hours per day; 
nonetheless, child labor remains a problem.  The ILO is working with 
the Nigerian government and civil society as part of the ILO's 
International Program on the Elimination of Child Labor.  The 
Nigerian government launched awareness and law-familiarization 
training programs for law enforcement, customs and other officials 
and has provided additional training in child labor issues for labor 
inspection officers.  Nigeria is participating in the West African 
Cocoa Agriculture Project to eliminate the worst forms of child 
labor from the cocoa sector.  Private and government initiatives to 
stem the incidence of child employment continued but were largely 
ineffective.  Investigations of child trafficking are hampered by 
official corruption. 
 
CAMPBELL