This record is a partial extract of the original cable. The full text of the original cable is not available.

200849Z Apr 06

UNCLAS ABUJA 000854 
 
SIPDIS 
 
STATE PASS TO USTR, LAURIE-ANN AGAMA 
 
E.O. 12958: N/A 
TAGS: ETRD KTEX NI
SUBJECT: NIGERIA'S IMPORT BAN ON TEXTILES: DEMARCHE 
 
REF:  STATE 53388 
 
¶1. Summary. As requested reftel, Embassy Abuja presented 
demarche on textile bans and Milliken's potential order to 
the Ministries of Finance and Commerce. The ministry 
officials informed Embassy officials that it would be 
difficult to grant an exception for Milliken because the GON 
has just started implementing the ECOWAS Common External 
Tariff (CET), which should obviate the need for bans and 
their consequent exemptions in the future.  Currently 
exemptions and waivers from the import prohibition list can 
only be granted by President Obasanjo, who requires a 
thorough justification as to why the lack of an exemption 
would be deleterious to the Nigerian economy.  End summary. 
 
----------------------------------- 
Meeting at the Ministry of Commerce 
----------------------------------- 
 
¶2. On Tuesday, April 11, Emboffs met with Dr. Yemi Obafemi, 
Director for External Trade, to present the demarche. Though 
Obafemi was sympathetic with Milliken's plight, he confirmed 
that his hands were tied in this case and advised that we 
meet with officials of the Ministry of Finance to discuss 
the issue. He confirmed that approvals for waivers and 
exemptions of import prohibitions can only be approved by 
the president, but he was hopeful that, if the CET is 
properly implemented and strictly adhered to, there will be 
no outright bans in the future. 
 
---------------------------------- 
Meeting at the Ministry of Finance 
---------------------------------- 
 
¶3. On Tuesday, April 18, Emboffs presented the demarche 
jointly to Alhaji J. I. Zarewa, Director Home Finance; Mr. 
¶I. K. Oguejiofor, Deputy Director, Fiscal Policy; and Mr. 
Sani Sidi, Special Assistant to the Minister of State for 
Finance. The officials reiterated the position earlier 
stated by Dr. Obafemi of the Ministry of Commerce regarding 
the CET and that approvals for such waivers can only be 
granted by the president. Mr. Oguejiofor specifically noted 
that the GON and manufacturers held several meetings before 
the CET was agreed upon, and it was too early to start 
asking for waivers since the CET has only been implemented 
for just seven months. He said it would be better to allow 
the CET work for some time, work out the bugs and make 
amendments where necessary. He stated that, if the CET is 
allowed to work, there will be no need for bans in the 
future. 
 
¶4. On Milliken's issue the Ministry of Finance officials 
advised that a detailed justification must be done by the 
Nigerian company placing the order for the carpets stating 
the adverse economic impact the prohibition will have on its 
operations. Specific questions to be answered will include 
why the import is critical to its production process; the 
number of job losses that would result from the shut down in 
production; and proof that the item to be imported cannot be 
produced in Nigeria. Mr. Oguejiofor told Embassy officials 
that if the information requested could be provided, and he 
was convinced by it, he would prepare a request to the 
president seeking approval for the items to be imported.