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P 161641Z JAN 08
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 1853
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHOS/AMCONSUL LAGOS 8567
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEHNSC/NSC WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEKDIA/DIA WASHDC
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 05 ABUJA 000106 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE FOR AF/W, INR/AA 
DOE FOR CGAY AND GPERSON 
DEPARTMENT PASS TO USTR-AGAMA 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM PREF EFIN ETRD EPET KCOR MASS ELAB
NI 
SUBJECT: NIGERIA: POL/ECON UPDATES FOR JANUARY 1-15, 2008 
 
REF: A. ABUJA 23 
     ¶B. 07 LAGOS 688 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET 
DISTRIBUTION. 
 
¶1. (U) Following is a joint Embassy Abuja-ConGen Lagos 
compilation of January 1-13, 2008 political/economic 
highlights, which did not feature in our other reporting, 
covering: 
-- Election Tribunals 
-- Corruption 
-- Niger Delta 
-- ECOWAS 
-- National Assembly 
-- Human Rights, Labor, Refugees 
-- Economic News 
-- Petroleum 
 
ELECTION TRIBUNALS 
------------------ 
¶2. (U) Appeals to decisions rendered by the Gubernatorial 
Election Tribunals will commence hearing at the 
specially-constituted Appeals Tribunal next week in Abuja. 
(Note: Three gubernatorial elections have been overturned in 
Adamawa, Kebbi, and Kogi by the election tribunals; the 
gubernatorial polls in Anambra and Rivers were reversed by 
the Supreme Court.  End Note.) 
 
¶3. (U) The Action Congress (AC) alleged the People's 
Democratic Party (PDP) has been attempting to bribe (with 
amounts totaling USD 3 million) Osun State Election Tribunal 
justices in an effort to sway outcomes.  (Note: AC 
gubernatorial candidate Rauf Aregbesola petitioned the Osun 
State Election Tribunal to nullify the April 14 election of 
Olagunsoye Oyinolola (PDP), which the AC claims was fraught 
with electoral malpractices, including ballot box theft and 
rigging.  Several witnesses for the AC have testified the PDP 
and the Independent National Electoral Commission (INEC) 
perpetrated ballot box theft and election rigging throughout 
the state.  End Note.) 
 
¶4. (SBU) Resident Electoral Commissioner for Kebbi state, 
Martins Okunfolami, announced January 6 INEC has deleted 
363,303 duplicate names from Kebbi's electronic voters 
database.  Okunfolami touted this as a success for INEC's 
electronic voter registration exercise, which commenced in 
late 2006.  936,697 voters remain in the Kebbi database and 
are supposed to receive permanent voter identification cards 
soon.  (Note:  This means that approximately 25% of the 1.3 
million names on the Kebbi voters roll during the April 2007 
elections were fraudulent.  As noted above, the Kebbi 
gubernatorial election was annulled at the tribunal, but an 
appeal is pending in the case.  End Note.) 
 
CORRUPTION 
---------- 
¶5. (U) On January 13, the Economic and Financial Crimes 
Commission (EFCC) announced the appointment of EFCC Director 
of Operations, Ibrahim Lamorde, as Acting Executive EFCC 
Chair while current Chair Nuhu Ribadu attends a mandatory 
10-month sabbatical beginning in February to the National 
Institute for Policy and Strategic Studies in Jos, Plateau 
state. 
 
¶6. (SBU) During a meeting with a senior EFCC official, Lagos 
Consul General and LEGATT expressed strong support for the 
EFCC.  All present expressed their desire to see the 
organization succeed in its efforts to weed out corruption in 
Nigeria.  The EFCC official insisted that business would 
continue as usual at the EFCC, regardless of changes in 
personnel.  He insinuated that former Delta State Governor 
James Ibori, currently facing charges of corruption brought 
by the EFCC (see below) and former Vice President Atiku 
Abubakar were behind recent moves to weaken the EFCC. 
 
¶7. (U) On January 11, former Edo governor Lucky Igbinedion 
 
ABUJA 00000106  002 OF 005 
 
 
(PDP, 1999-2007) announced his intention to return January 21 
to Nigeria following an Abuja Federal Court arrest warrant 
issued against him January 8.  Igbinedion is accused of 142 
counts of corruption, including allegations that he 
misappropriated US$200 million from state coffers while in 
office.  (Note: Igbinedion was one of 31 governors under 
indictment by the EFCC in September 2006 and voluntarily 
appeared before the EFCC in June 2007 to answer corruption 
charges.  End Note.) 
 
¶8. (U) Former governor James Ibori (PDP, 1999-2007), 
currently under investigation from the EFCC for allegedly 
stealing more than US$80 million in public funds, was denied 
bail by a Kaduna High Court on January 11.  Ibori was flown 
to Abuja National Hospital on January 10, as his lawyers 
claimed Ibori was suffering in "difficult" conditions in a 
Kaduna prison.  (Note: Ibori was earlier denied bail by a 
Federal Court on December 17.  Ibori is widely viewed as one 
of the principal financiers of President Yar'Adua's election 
campaign. This case is being viewed as a litmus test for the 
President's stated commitment to tackling corruption.  End 
Note.) 
 
¶9. (SBU) EFCC Chair Nuhu Ribadu issued a statement January 10 
denying allegations he owns residences in Dubai or controls a 
foreign bank account.  Press reports began circulating 
January 7 claiming Ribadu purchased lavish homes in Dubai and 
Nigeria, including the former IG of Police's US$2 million 
home in an Abuja suburb.  The reports also alleged Ribadu 
engaged in "illegal" business activities while EFCC Chair. 
Ribadu is expected to appear before a House of 
Representatives committee to answer graft charges against 
him. 
 
NIGER DELTA 
----------- 
¶10. (SBU) Kidnappings of family members of political figures 
continued early 2008 following a trend established in 2007. 
The sister of an Akwa Ibom lawmaker was reportedly abducted 
on New Year's Day; according to press reports, her abductors 
demanded US$850,000 for her release.  On January 4 gunmen 
abducted the son of the Rivers state PDP Secretary, demanding 
US$500,000 according to a human rights contact. 
 
¶11. (U) Deputy Senate President Ike Ekweremadu announced 
January 3 the Senate will declare the Niger Delta a disaster 
area to draw attention to its need for development. 
Ekweremadu said the GON will seek the help of international 
development partners to supplement the Niger Delta 
Development Master Plan, and questioned the lack of results 
from previous appropriations. 
 
NATIONAL ASSEMBLY 
----------------- 
¶12. (U) Chair of the House Judiciary Committee, Henry 
Dickson, announced January 13 the bill seeking the merger of 
anti-graft agencies, the EFCC and the Independent Corrupt 
Practices Commission (ICPC), would be presented the week 
beginning January 14 for consideration by the House.  The 
Code of Conduct Bureau cannot be merged with the EFCC and 
ICPC since it is created by Constitutional mandate (not 
through National Assembly legislation).  Dickson assured the 
merger would not affect the commensurate, though distinct, 
functions of the EFCC and ICPC. 
 
¶13. (U) Delay in the passage of the 2008 Appropriations Bill 
and subsequent investigations into rollover amounts from 
previous years (See Ref A) have led to the recovery of over 
300 billion naira (approx. US$2.5 billion) of unspent funds 
from different GON ministries.  Deputy Speaker of the House, 
Usman Nafada, said the money will be appropriated for FY2008. 
 
 
¶14. (U) After the 2008 budget is passed, the Senate will turn 
its attention to reviewing and possibly amending Nigeria's 
1999 Constitution, according to Ayogu Eze, Chair of the 
Senate Information Committee.  At a press conference January 
 
ABUJA 00000106  003 OF 005 
 
 
8, Eze also pledged the Senate would soon pass the 
long-awaited "Freedom of Information" bill. 
 
¶15. (SBU) Senate President David Mark also announced January 
8 that reviewing the 1999 Constitution would be a top Senate 
priority in 2008.  He explained that priority areas for 
amendment would include boundary adjustments (including 
creation of local governments and states), the immunity 
clause (which protects incumbent governors from criminal 
prosecution), and the rules governing State Independent 
Electoral Commissions (which conduct the sometimes violent 
local government council elections).  However, House Speaker 
Bankole separately told Emboffs that he was not/not in favor 
of amending the Constitution at this time. 
 
¶16. (U) Media reports January 7 indicated the Ministry of 
Foreign Affairs has decided where to post the 61 ambassadors 
earlier confirmed by the Senate in 2007.  The Ministry will 
begin the process of seeking agrement for the new ambassadors 
soon.  The Senate is expected shortly to confirm 3 remaining 
Ambassadorial nominees:  Buba Marwa (former military governor 
of Lagos state), Kema Chikwe (former Aviation Minister), and 
former Senator Polycarp Nwite.  All three have already been 
cleared by the Senate Committee on Foreign Affairs.  (Note: 
The posts of Nigerian Permanent Representative to the UN and 
Nigerian Ambassador to Washington are vacant at present.  End 
Note.) 
 
¶17. (U) On January 2, Chair of the Senate Environment and 
Ecology Committee, Grace Bent, informed the committee has 
discovered that some state governors diverted funds for 
ecological programs into private accounts (allegedly for 
public relations and entertainment purposes). 
 
¶18. (U) On January 1, Senator Adamu Aliero said the 
Constitution must be amended before the Senate can ratify the 
2006 Green Tree Agreement which ceded the Bakassi Peninsula 
to Cameroon.  He explained that Bakassi is listed in the 1999 
Constitution as one of Nigeria's 774 local government areas. 
He emphasized the Senate should move quickly to amend the 
Constitution and ratify the agreement, as it is important for 
Nigeria to keep its word and uphold existing international 
agreements. 
 
ECOWAS 
------ 
¶19. (U) Preparations are moving forward for the African 
Contingency Operations Training and Assistance (ACOTA) -led 
logistics and planning training for the ECOWAS Standby Force 
(ESF) Headquarters' staff.  The training will take place 
February 4-22 in Accra, and will involve 30-40 staff from 
ECOWAS member states.  This exercise is part of ongoing 
efforts to stand up the ESF by 2010, and was previously in 
danger of cancellation or reduction in scope due to lack of 
responsiveness on the part of member states. 
 
HUMAN RIGHTS, LABOR, AND REFUGEES 
-------------------------------- 
¶20. (U) On January 8, Attorney General Michael Aondoakaa 
announced there are currently more than 300 children in 
prisons throughout Nigeria and that many of them were born in 
the prison system.  Aondoakaa said the Ministry of Justice is 
currently working to identify the children, and eventually, 
release them with their mothers. 
 
¶21. (U) On January 8, President Yar'Adua inaugurated a 
16-member Police Reformation and Transformation committee to 
be headed by former IG of Police, M.D. Yusuf.  The committee 
will examine the current state of the police force and make 
recommendations to improve its effectiveness. 
 
¶22. (U) Following accusations by Amnesty International that 
the GON was secretly executing prisoners (Ref A), local press 
reported the Kano High Court sentenced three suspected 
murderers to death by hanging on January 8. 
 
¶23. (U) On January 3, Kano state officials reported an 
 
ABUJA 00000106  004 OF 005 
 
 
upsurge in incidents of child rape, recording 54 cases and 60 
related arrests.  Kano Deputy Police Chief, Suleiman Abba, 
said the number of cases reported increased by 70% during the 
last half of 2007.  It remains unclear whether the increase 
is related to a rise in the actual reporting of incidents. 
 
¶24. (U) As a result of the September 2007 riots at Agodi 
Prison in Ibadan (Oyo state) (Ref B), Minister of Interior 
Godwin Abbe announced a committee is still investigating the 
incident and said another committee would be formed to 
monitor the activities of prisoners and prison officials. 
Comptroller General of Prisons, Ogundipe Olusola, said closed 
circuit television had been installed at 27 prisons to 
enhance surveillance and security. 
 
¶25. (U) President of the Nigerian Labor Congress (NLC) 
Abdulwahed Omar outlined the NLC's 2008 vision, stating it 
will continue to engage "troubled leaders and institutions." 
Omar praised the Nigerian judiciary and called for a change 
in INEC leadership.  He also called on President Yar'Adua to 
institute a judicial commission of inquiry into the transfer 
of public assets under former President Obasanjo's 
administration.  The NLC would oppose any attempt to 
compromise the EFCC's effectiveness through a merger with the 
ICPC and similar agencies, Omar said.  He also drew attention 
to excessive government perks, allowances and salaries and 
entreated the National Assembly to responsibly allocate 
resources. 
 
¶26. (U) Moreover, NLC President Omar called for the GON to 
increase the country's productive capacity, protect local 
industries from "indiscriminate trade liberalization," and 
develop a macro-economic policy roadmap which would include 
infrastructure regeneration in order to help meet 2020 goals. 
 Omar wants the GON to work with the labor sector to maintain 
the gasoline price stability agreed upon in June 2007.  Omar 
also said the NLC would oppose Nigeria's hosting of AFRICOM. 
 
¶27. (SBU) On January 8, PolOff visited the Oru Refugee Camp 
(Ogun state), for which the UNHCR ended its support in June 
¶2006.  The camp remains home to over 3,000 Liberian and 
Sierra Leonian refugees.  Female refugees are alleged to work 
as hair stylists while men build bricks in the neighboring 
village.  (Note: Refugees choosing not to return to their 
native lands were expected to integrate into local 
communities.  End Note.)  The refugees remaining at the camp 
are reportedly waiting to be moved to one of 25 other 
Nigerian states, a move reportedly supported by the GON. 
 
ECONOMIC NEWS 
------------- 
¶28. (U) President Yar'Adua has ordered Minister of Finance 
Usman to close all illegal accounts held by GON ministries, 
departments, and agencies in the Central Bank of Nigeria 
(CBN).  These accounts include signature bonus funds and 
special levies from the Customs, Port Authority, and other 
agencies. 
 
¶29. (U) A total of 600 community banks successfully converted 
to microfinance banks (MFBs) by the December 31, 2007 
deadline.  The CBN had mandated community banks to 
recapitalize to a minimum of US$170,000 in equity by the end 
of 2007 to be able to operate as MFBs.  All 600 banks were 
issued final licenses or provisional approvals to operate 
alongside 200 previously-licensed MFBs.  Nigeria's 
microfinance policy was launched in December 2005 to make 
financial services accessible to people who would otherwise 
have little or no access to them. The CBN plans to continue 
processing license applications for new MFBs. 
 
¶30. (U) Lagos State accounts for half of all funds disbursed 
under the Small and Medium Enterprises Equity Investment 
Scheme (SEEMIS).   The SEEMIS, a voluntary initiative of a 
commercial bank trade group, asks banks to set aside 10% of 
their Profit After Tax (PAT) for investment in small and 
medium enterprises.  Since its inception in 1999, over US$311 
million has been set aside. 
 
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PETROLEUM 
--------- 
¶31. (U)  The Kaduna and Warri refineries remain off-line 
despite President Yar'Adua's pledge to have them operational 
by the end of 2007.  The Nigerian National Petroleum 
Corporation (NNPC) blames vandalism of feed stock pipelines 
for the delay.  (Comment:  Pipeline integrity is a key, and 
vexing, problem for returning the refineries to operation. 
The GON's plan to hire community-based contractors to perform 
repair work will be expensive and will encourage additional 
vandalism as local communities realize that breaking a 
pipeline is a source of recurring revenue from the NNPC.  End 
Comment.) 
 
¶32. (U) A local business daily reports Russia's Gazprom is 
seeking to enter the Nigerian sector market.  According to 
the report, Gazprom officials visited Abuja in mid-December 
and made unspecified proposals in the natural gas sector.  It 
may also seek a role in the GON's plan to attract third party 
financing in its joint ventures with international oil 
companies.  Local natural gas industry contacts claim they 
were caught be surprise by the the news of Gazprom's interest 
and remain skeptical about the veracity of the report, 
questioning what competitive advantage Gazprom would bring to 
operating in Nigeria. 
 
¶33. (SBU) Shell's Forcados oil field has reportedly increased 
production to 100,000 bpd.  A senior Shell contact confirmed 
the increase, and while he couldn't confirm the exact 
production figure, he said 100,000 bpd sounded, "about 
right".  However, exports from the associated Forcados oil 
terminal were cut off on January 11 after waste water and 
export pipelines were sabotaged.  Shell has not given an 
estimated repair date. 
PIASCIK