VZCZCXRO9546
PP RUEHMA RUEHPA
DE RUEHUJA #2403/01 3230625
ZNR UUUUU ZZH
P 190625Z NOV 07
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 1462
INFO RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHOS/AMCONSUL LAGOS 8279
RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 ABUJA 002403 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPARTMENT PASS TO USTR AGAMA 
TREASURY FOR PETERS 
USDOC FOR 3317/ITA/OA/KBURRESS 
USDOC FOR 3130/USFC/OIO/ANESA/DHARRIS 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EFIN EINV NI
 
SUBJECT: NIGERIAN TIFA TEAM STILL DELIBERATING 
 
SENSITIVE BUT UNCLASSIFIED - HANDLE ACCORDINGLY 
 
¶1.  Summary:  Ministry of Commerce and Industry reps are looking 
forward to hosting the December TIFA Council meetings.  The 
Ministry's budget precludes it from hosting more than one day of 
meetings on December 11.  The reps need more time to review the 
draft schedule, agenda and work plan.  Bans on agricultural products 
are temporary measures.  End Summary. 
. 
¶2. (U) On November 16, 2007 EconOffs and FAS Attache from Lagos met 
with Augustine A. Adigwe, Assistant Director,  Mary Udu-Ejembi, 
Assistant Director (Bilateral), of the Department of Trade, Federal 
Ministry of Commerce and Industry to discuss TIFA preparations. 
. 
Budget Problems Shorten Program 
------------------------------- 
. 
¶3. (SBU) Adigwe commented that due to budgetary considerations the 
Ministry only had funding for one-day of Council meetings and events 
on December 11.  He suggested the program be shortened and that all 
events take place on December 11.  He reported that the Ministry 
planned to host the event at the Hilton hotel in Abuja; on December 
12 the Minister was unavailable for meetings due to Cabinet meetings 
with President Yar'adua; and the Minister was planning to invite the 
Nigerian private sector to take part in the Council meetings on 
December 11. 
 
¶4. (SBU) Adigwe agreed that the TIFA talks and AGOA discussions 
should be held at the same time on December 11.  Adigwe asked for 
additional time to review the agenda and schedule for the AGOA 
program, Council meeting agenda and work plan.  Econoff and Adigwe 
agreed to discuss by phone the following week and to meet on 
November 23 for further clarification. 
 
¶5. (SBU) Econoff asked if an IPR program was of interest and Adigwe 
said yes and that it should be held on December 11, unless the USG 
planned to fund it and procure a site.  Regarding a planned site 
visit on December 13 with an AGOA exporter, Adigwe said Ministry 
officials would welcome the opportunity to take part in the visit. 
Adigwe asked that USAID provide information on the name and location 
of the exporter. 
. 
Banned Agricultural Products 
---------------------------- 
. 
¶6. (SBU) FAS Attache briefed them on the existing bans and 
restrictions on many American agricultural products. He noted that 
outright bans on products are inconsistent with Nigeria's WTO 
commitments.  Adigwe's responded that this was an issue that would 
be addressed.  He reported that an Asian country has reported to the 
WTO a complaint on Nigeria's ban on rice.  He stressed that the GON 
would address these issues and that they were temporary measures. 
 
¶7. (SBU) Comment:  The Ministry's Director for External Trade told 
Econ Counselor November 9 that he and Minister Ugwu were fighting a 
rear-guard action to roll back Nigeria's import bans.  The Director 
said that he and the Minister considered the bans to be injurious to 
Nigeria's economic development, as well as in conflict with WTO 
rules.  The problem the Ministry was facing, he said, was that 
traditionally Nigerian producers and manufacturers had bypassed the 
Ministry and gone to the Presidency to get protectionist import bans 
in place. 
 
¶8. (SBU) Comment continued:  A further complication was that the 
Ministry of Finance opposed lowering or eliminating tariffs in 
general, because customs duties contribute to government revenues. 
(Note:  Obviously, import bans do not/not produce any legal 
contributions to public revenues though smuggling to get around bans 
may be benefiting some Customs officials personally.  End note). 
The Director said he and Minister Ugwu were making the argument 
internally that a more rationale customs regime would benefit 
government revenues more broadly through stronger economic growth 
(Note:  Using bans to artificially constrain supplies also leads to 
higher prices at a time that Nigeria's president has publicly 
declared keeping inflation down to the single digits a national 
priority.  End note). 
 
¶9. (SBU) Comment continued:  It certainly appears that the Ministry 
is open to the possibility of rolling back one or more import bans 
in the short-term.  Embassy believes that should be a key goal of 
next month's TIFA Council.  It may be wiser to set the rollback 
precedent with one or two of the more compelling cases, e.g. corn, 
than to seek a commitment to roll back all the bans at the Council. 
 
ABUJA 00002403  002 OF 002 
 
 
End comment. 
 
PIASCIK