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RHMFISS/HQ USAFRICOM STUTTGART GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 03 ABUJA 001950 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PASS TO USTR-AGAMA 
DOE FOR GPERSON, CHAYLOCK 
 
E.O. 12958: N/A 
TAGS: PGOV KDEM ECON EPET MOPS KTIP NI
SUBJECT: NIGERIA:  BI-WEEKLY POL/ECON UPDATES FOR SEPTEMBER 1-15, 
2008 
 
¶1. (U) The following is a joint Embassy Abuja/ConGen Lagos 
compilation of September 1-15 political/economic highlights, which 
did not feature in our other reporting, covering: 
 
--Economic and Business 
--Trafficking in Persons 
--National Assembly 
--Oil and Gas 
--Southern Politics 
 
------------------------ 
ECONOMIC & BUSINESS NEWS 
------------------------ 
¶2. (U) NIGERIA'S DEBT: Nigeria's external debt stands at $3.7 
billion, which is about four percent of the country's Gross Domestic 
Product.  Head of the Debt Management Office (DMO) explained to the 
press that the figure is remarkable compared to 60 percent of the 
country's GDP before debt relief.  The DMO stated further that 
Nigeria's decision to access $500 million from the international 
capital market will open strategic windows to mobilize resources 
under favorable terms and conditions to keep sustainable economic 
growth. 
¶3. (U) SEC COMMITTEES TO REVIEW CAPITAL MARKET STRUCTURE: The 
Committee on the Review of Corporate Governance for Public Companies 
and the Committee for the Review of Capital Market Structure and 
Processes were inaugurated on September 15 by the Securities and 
Exchange Commission (SEC) in Abuja. A.B. Mahmoud chairs the panel on 
Corporate Governance whose purpose is to review the Nigerian 
Corporate Governance Code for Public Companies and identify 
obstacles to good corporate governance in public companies. Dotun 
Sulaiman heads the committee for the Review of the Capital Market 
Structure and Processes, which identifies the strength, weaknesses, 
opportunities and challenges of the Nigerian capital market. The 
panel will review the present market structures, processes, as well 
as regulatory and institutional frameworks. It will also make 
recommendations for the improvement of the operational efficiency 
and transparency of the market, and suggest amendments to existing 
laws. 
¶4. (U) NIGERIA AND EU SIGN N17.4 BILLION ($148 MIL) AGREEMENT ON 
NIGER DELTA: The EU signed a $148 million agreement with the GON on 
September 11 to execute three governance projects in the Niger 
Delta. The first is aimed at reducing rural and sub-urban poverty, 
strengthening community governance and providing basic 
infrastructure to improve service delivery in the region. The second 
is aimed at strengthening non state actors' capacity to work toward 
achieving poverty reduction and bolstering democratic processes. The 
third project will focus on good governance at the state level 
through efficient and transparent management of public finances to 
ensure improved service delivery. 
---------------------------- 
Trafficking in Persons (TIP) 
---------------------------- 
¶5. (U) On September 4, the National Agency for the Prohibition of 
Trafficking in Persons (NAPTIP), under the auspices of the American 
Bar Association's Rule of Law Initiative, commissioned the TIP 
database, VSAT and solar power project. This project began over two 
years ago and has finally reached completion. The database is 
connected by VSAT to all NAPTIP zonal offices, and the solar powered 
main server provides 24 hour access and greater operational 
capacity, despite frequent power outages. The database will allow 
law enforcement and civil society across the country to collect and 
collate data in an effective and efficient manner that will track 
both criminals and victims, enhancing both prosecution and 
protection. Additionally, the collection of such data will, in time, 
provide a detailed assessment of the complexity of the problem of 
trafficking in persons in Nigeria. 
 
¶6. (U) On September 10, NAPTIP announced the arrest of 60 Nigerians 
in eight European countries for human trafficking. In coordination 
with international agencies, NAPTIP co-organized Operation Koovis, 
which was carried out in Belgium, France, Spain, Italy, Ireland, 
Germany, Netherlands, and Britain, where offenders are currently 
facing prosecution. 
 
¶7. (U) Osun State Governor Olagunsoye Oyinlola signed the Child 
Rights Act into law on September 11. Speaker of the Osun State House 
of Assembly, Adejare Bello, said the law will protect children and 
other vulnerable groups, including women, from abuse. (Note: Osun 
State is only the 17th of 36 states to pass the Act into law. End 
 
ABUJA 00001950  002 OF 003 
 
 
note.) 
 
------------------------- 
National Assembly Resumes 
------------------------- 
 
¶8. (U) The National Assembly has reconvened following their annual 
six-week recess.  The Daily Trust reported on September 8 that, 
according to officers of the House of Representatives, the 
priorities of both chambers are a review of the constitution and the 
2008 budget bill.  In addition, This Day reported on September 11 
that the House commenced deliberations on a bill that seeks to 
decentralize the awarding of contracts by ministries and government 
agencies as well as the issuance of due process certificates.  Local 
press also reported that Speaker of the House Dimeji Bankole, said 
the House would soon inaugurate a committee to monitor the 
activities of the non-governmental organizations - tracking funds 
from donors to ensue that such funds are use for their intended 
purpose. 
 
¶9.  (U) According to the Daily Trust, Speaker Bankole met the 
Electoral Reform Committee (ERC) Chairman, former Chief Justice of 
Nigeria Muhammad Uwais, on September 11.  Uwais said the ERC is 
trying to acquaint lawmakers with their work and asking for support. 
 During the meeting with the Speaker, Uwais reportedly added that 
the National Assembly "is going to set up a committee that is going 
to look at the possible amendment to the constitution and since our 
work is likely to touch on that, we thought we should bring to your 
notice that we too might make some recommendations that would 
involve, apart from amendment to the Electoral Act, also an 
amendment to the constitution." 
 
¶10. (U) Chairman of the Senate Committee on Information and Media 
told journalists on September 10 that the Senate would ensure 
passage of the Freedom of Information Bill within the next three 
weeks.  The bill has generated heated debate, particularly on the 
floor of the House, about the level of responsibility and 
professionalism exhibited by the Nigerian press, the motives of 
politicians, as well as progress (or lack thereof) in the war on 
corruption. 
 
----------- 
Oil and Gas 
----------- 
 
¶11. (U) On September 3, South African energy company Sasol announced 
it was reducing its stake in a gas-to-liquids facility being built 
in Escravos, Delta State.  Majority partner Chevron agreed to buy 
part of Sasol's equity in the joint venture, reducing Sasol's 
participation from 37.5% to 10.0%.  In May, Sasol had announced it 
was reviewing its participation in the plant due to repeated delays 
and soaring project costs.  The plant, which uses Sasol patented 
technology to turn natural gas into diesel and naptha, is scheduled 
to be completed in 2011 at a cost of $6 billion. 
 
 
--------------------------------------------- ----- 
Southern Politics:  MASSOB Strike Ignored, No Bail 
--------------------------------------------- ----- 
 
¶12. (SBU) A call by the Movement for the Actualization of the 
Sovereign State of Biafra (MASSOB) for an August 28 stay-at-home 
protest was widely ignored in the predominantly Igbo Southeastern 
states which once formed part of the former secessionist state of 
Biafra.  MASSOB called the strike to protest what it considers the 
continued Nigerianization of Biafrans and to draw attention to what 
it describes as continued British involvement in Nigerian-sponsored 
genocide in the region.  News accounts stated businesses and markets 
were open as usual, with few exceptions. 
 
¶13. (U) Also August 28, a judge in Ebonyi State denied a bail 
request for MASSOB members arrested during a Biafran commemorative 
march in Anambra State in May, who are currently  facing federal 
charges of treason.  The case was adjourned until September 30. 
 
¶14. (SBU) More than fifty-five members of the Oodua People's 
Congress (OPC) were arrested September 3 after an August 28 clash 
with members of the National Union of Road Transport Workers (NURTW) 
in which eight people, including two policemen, were killed.  An 
 
ABUJA 00001950  003 OF 003 
 
 
Ibadan-based lawyer, told PolSpec on September 12 that the clash 
erupted when Lagos-based OPC members, driving through Ibadan to 
Osogbo to attend the annual Osun-Osogbo festival, encountered a 
makeshift road block manned by NURTW members, who insisted that the 
OPC vehicles had to pay a toll. 
 
¶15. (U) Former Governor of Oyo State, Rasheed Ladoja, and two former 
aides were granted bail a week after having been arrested by the 
Economic and Financial Crimes Commission (EFCC) on charges of 
corruption and theft totaling 6.5 billion naira (USD 55.5 million) 
during Ladoja's tenure.  The 33 counts against Ladoja, godson of the 
recently-deceased Ibadan godfather Lamidi Adedibu, include 
conspiracy to defraud the state government, abuse of office, and 
stealing.  The court date for the initial hearing has been set for 
October 20. 
 
¶16. (U) A September 2 meeting of the Ogun State People's Democratic 
Party (PDP) intended to resolve a power struggle between the state's 
three zones may have exacerbated tensions.  Former President 
Obasanjo and Governor Gbenga Daniel differed over the allocation of 
positions within the state government among the three zones. 
Because the state party was unable to reach a resolution, the 
National Working Committee of the PDP will take up the question at 
its next working meeting. 
 
Piascik