VZCZCXRO9895
PP RUEHMA RUEHPA
DE RUEHUJA #2601/01 3610648
ZNR UUUUU ZZH
P 270648Z DEC 07 ZDK
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 1692
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 8443
RUEHZK/ECOWAS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RULSDMK/DEPT OF TRANSPORTATION WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS SECTION 01 OF 03 ABUJA 002601 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
ACCRA FOR USAID/WATH 
DEPARTMENT PASS TO USTR-AGAMA, EXIM-JRICHTER, TDA-EEBONG 
TREASURY FOR PETERS AND HALL 
DOC FOR 3317/ITA/OA/KBURRESS, 3130/USFC/OIO/ANESA/ DHARRIS, AND 
USPTO - JKOEPPEN AND PSALMON 
DOJ FOR MKOUAME 
DOE FOR CGAY AND GPERSON 
DOT FOR MARAD 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EFIN EINV EAID PGOV NI
SUBJECT: NIGERIA: SUCCESSFUL AGOA WORKSHOP AND SHEA BUTTER SITE 
VISIT 
 
REF: A. ABUJA 2600 
 
      ¶B. ABUJA 2593 
      ¶C. ABUJA 2403 
 ¶D. ABUJA 2178 
 
ABUJA 00002601  001.2 OF 003 
 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION 
 
¶1. (SBU) Summary.  The AGOA workshop presented an opportunity for 
the Nigerian private sector to listen to and speak with GON and USG 
officials on how Nigerian exporters have benefited and can continue 
to benefit from AGOA.  The private sector was well-represented and 
flexible considering the last-minute schedule changes due to 
speakers not showing up.  GON and USAID/West Africa Trade Hub 
(USAID/WATH) representatives explained how Nigeria has not taken 
full advantage of AGOA and offered solutions to the challenges 
hindering increased AGOA exports.  The main problems are lack of 
coordination between the GON and private sector, poor electricity 
supply and other infrastructure and insufficient assistance from the 
GON to exporters.  The TIFA delegation visited two shea butter 
processors that received technical assistance from USAID/WATH to 
hear from rural exporters and were told that they need more USG 
technical assistance.  End Summary. 
. 
AGOA WORKSHOP 
------------- 
. 
¶2. (SBU) On December 11, in Abuja, the fifth TIFA Council meeting 
and an AGOA workshop took place.  The U.S. delegation was led by 
Florizelle Liser, Assistant United States Trade Representative for 
Africa and included members from the Department of State, Commerce, 
Agriculture, and agencies ranging from the African Development 
Foundation to USAID Nigeria and the USAID West Africa Trade Hub. 
The GON delegation was led by Minister of Commerce and Industry 
(MCI) Charles Ugwuh, with Elizabeth P.B. Emuren, Permanent Secretary 
(PS) at (MCI) leading the Nigerian side at the Council for most of 
the day-long talks. 
. 
AGOA GOOD FOR NIGERIA 
--------------------- 
. 
¶3. (SBU) In her opening remarks, Deputy Chief of Mission Lisa 
Piascik described how Nigeria benefits from AGOA - increased job 
creation, improved standard of living, improved infrastructure from 
meeting AGOA standards, and increased foreign exchange earnings from 
exports.  The DCM also noted Nigeria has several major challenges to 
overcome to fully benefit from AGOA - fixing decaying 
infrastructure, an unfavorable investment climate, intermittent 
reversals in the economic reform process, lack of transparency in 
trade policy formulation, the need for building greater capacity in 
trade policy negotiation, better implementation and identification 
of trade opportunities.  She underscored that the objective of the 
workshop was to increase Nigeria's non-oil exports to the U.S. under 
AGOA. 
 
¶4. (SBU) AUSTR Liser remarked that Nigeria's non-oil exports to the 
U.S. were about $1.4 million in 2006, and that Africa's share of 
world trade dropped from about 6% in the 1980s to less than 2% in 
¶2006.  She emphasized that if Africa could grow its share of world 
trade by just 1% it would translate to over $70 billion annually in 
income/wealth, which is greater than annual donor aid to Africa. 
 
¶5. (SBU) PS Emuren said the focus of Nigeria's industrialization 
policy is the development of infrastructure to support industries 
for export and local consumption.  She urged American investors to 
collaborate in rehabilitating or building new oil refineries in 
Nigeria.  PS Emuren complained that the U.S. visa issuing process is 
a major impediment to trade between Nigeria and the U.S. and should 
be improved.  She also urged the USG to help Nigerian manufacturers 
build capacity in achieving packaging specifications and standards. 
. 
AGOA IMPLEMENTATION AND VISION 2020 
----------------------------------- 
. 
¶6. (SBU) A.M. Lawal, Executive Director in the Nigerian Export 
 
ABUJA 00002601  002 OF 003 
 
 
Promotion Council (NEPC), delivered comments for Minister of State 
for Commerce & Industry, Alhaji Ahmed Garba Bichi, who was to chair 
the AGOA workshop but was a no show.  Lawal said AGOA has helped 
increase trade and promote economic development in Africa.  AGOA has 
been particularly helpful because it has non-discriminatory policies 
regarding country of origin rules.  He believes AGOA will assist 
Nigeria's dream to become one of the top 20 largest economies by 
¶2020.  Lawal identified the following sectors as where Nigeria 
should focus resources to increase exports -  textiles and apparel 
products, seafood products, footwear and leather products, crafts, 
and agricultural products. 
 
¶7. (SBU) Lawal described NEPC's efforts to increase AGOA exports: 
-- Providing assistance to exporters on USG certification procedures 
- shrimp exports. 
-- Establishment of an apparel production training center in Lagos 
that has trained 140 people and will deliver its first batch of 
orders in January 2008. 
 
¶8. (SBU) He said the key reasons for Nigeria's poor performance in 
increasing non-oil exports were - policy and administrative 
inconsistencies; inadequate infrastructure for industrial production 
- especially power and transportation problems; poor access to 
finance for SMEs; cumbersome Nigerian customs procedures; and 
Nigerian exporters failing to meet agreed delivery times.  Lawal 
quipped "We must meet the standards. If other African countries can 
do it, we should try too." 
 
¶9. (SBU) Participants suggested that exporters must improve on 
product quality, packing and labeling, increase local production 
capacity, and asserted the Central Bank (CBN) should initiate 
reforms to increase low-cost credit to SMEs.  A CBN representative 
answered that private sector reforms started in 2004, and 
microfinance policies are in place to ensure that financial 
resources are available.  He noted the CBN guarantees credit to 
enterprises or individuals for sums as small as 100,000 naira (70% 
funded by bank and 30% by individual). 
 
¶10. (SBU) O. B. Ayeni, representing the government agency Standard 
of Nigeria (SON), commented that Nigerian exporters should become 
more knowledgeable of Nigerian standards codes to better conform to 
U.S. standards.  She noted that the SON is willing to improve or 
adopt foreign standards whenever they are required to boost 
exports. 
. 
USAID/WA OVERVIEW OF AGOA IN NIGERIA 
------------------------------------ 
. 
¶11. (SBU) A representative from the USAID/WATH explained that AGOA 
has not been as successful as possible in Nigeria because there has 
not been a coherent dialogue between the GON and private sector.  A 
key ingredient missing in Nigeria is an AGOA coordinating committee, 
which improves communication between the government and private 
sector in other AGOA exporting countries.  The USAID rep recommended 
that the GON and private sector focus on the market and customer to 
determine which products are in demand and then build capacity in 
relevant national institutions dedicated to promoting those exports. 
 He cited four key areas - market research, creating acceptable 
product labels, excellent product packaging and advertisement, and 
frequent and targeted trade shows and missions. 
. 
NIGERIAN PRIVATE SECTOR PERSPECTIVE 
----------------------------------- 
. 
¶12. (SBU) Representing the private sector, Asibong Eneobong, 
Director of the Abuja Liaison Office of the  Manufacturers 
Association of Nigeria (MAN), remarked that his organization's 
immediate interest in AGOA is increasing textile/apparel exports. 
MAN believes supporting AGOA will stimulate and grow industrial 
capacity and exports.  He underscored that the major impediments to 
manufacturers are - poor and irregular supply of electricity, the 
high cost of generating alternative power, disruption of the natural 
gas network due to vandalism and shutdowns, and the growing cost of 
raw material inputs such as cotton and cereals. 
 
ABUJA 00002601  003 OF 003 
 
 
 
¶13. (SBU) He commented that inconsistent GON policies and reforms, 
and non-implementation of policies have hurt manufacturers.  For 
example, after almost two years, the GON has yet to disburse to the 
textile industry any portion of the 70 billion naira assistance 
fund.  Also policies are reversed without notice and prior 
consultation, such as the Export Expansion Grant (EEG) abruptly 
suspended in 2005.  Eneobong opined that the GON needed to implement 
consistent policies and address decay in infrastructure and 
transportation sectors. 
. 
VISIT TO SHEA BUTTER PRODUCERS 
------------------------------ 
. 
¶14. (SBU) On December 9 the TIFA delegation visited two shea butter 
producers in Minna, Niger state, who are working with USAID/WATH. 
The delegation observed a small scale mechanized shea processing 
firm in Minna township and traveled to a small farm village to 
examine traditional shea butter production processes.  The shea 
processors told us that only 30% of the total available supply of 
nuts is collected and processed.  The processors lamented that they 
receive larger profits from selling raw shea nuts than processing 
because local value for the shea butter is low.  Another issue 
hindering production is the unreliable supply of electricity from 
the national grid.  They noted processing shea butter with a 
generator is unprofitable.  Another problem is that the process 
requires clean water and the village processors have difficulty 
finding clean water. 
 
¶15. (SBU) The processors asked for technical support and training to 
improve their shea butter quality, a dedicated borehole to increase 
the supply of clean water, technical support for the quality control 
laboratory at the Federal University of Technology in Minna, and 
assistance in building a storage facility/collection center in the 
village.  The delegation was impressed with the quality of shea 
butter produced, the level of organization, and cooperation between 
the private and public sectors. 
. 
COMMENT 
------- 
. 
¶16. (SBU) The AGOA workshop was well-attended by eager and 
interested private sector representatives who expressed strong 
interest in learning more about AGOA, how U.S. assistance can help 
and what the GON is doing to assist Nigerian exporters.  Tom 
Herlihy, Chief of Party for the USAID/WATH expressed disappointment 
that the AGOA workshop Chairman, Minister of State for Commerce & 
Industry, Alhaji Ahmed Garba Bichi, and other speakers that had 
promised to participate did not appear.  He was pleased with the 
lively participation of Nigerian business people in attendance, and 
noted they are interested in exporting and taking advantage of AGOA, 
but have questions on how to start the process. 
 
SANDERS