VZCZCXRO2501
PP RUEHMA RUEHPA
DE RUEHUJA #0481 0721022
ZNR UUUUU ZZH
P 121022Z MAR 08
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 2318
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 8919
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHZK/ECOWAS COLLECTIVE

UNCLAS ABUJA 000481 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR EEB/IFD/OMA (SNOW AND FIGUEROA) 
 
E.O. 12958 
TAGS: EAID EFIN ECON PREL NI
SUBJECT: NIGERIA: CONGRESSIONALLY MANDATED REPORT ON FISCAL 
TRANSPARENCY IN COUNTRIES RECEIVING USG ASSISTANCE 
 
REF:  STATE 16737 
 
¶1. (U) Mission provides the following information per reftel 
request: President Umaru Yar'Adua's administration assumed office in 
May 2007, and has committed itself verbally to upholding the 
principles of openness, transparency and full accountability in the 
management of public funds, and has not approved the operation of 
any "special accounts" or the withholding of details of such 
accounts from the National Assembly and the public. 
¶2. (U) In the 2008 budget presented to the National Assembly on 
November 8, 2007, there were provisions for 20% of the total to be 
spent on security in the Niger Delta; 13% on education, and 7% on 
the agricultural sector.  The administration also plans to focus on 
power and energy, supporting projects in partnership with the 
private sector.  The administration is attempting to follow 
international best practices in discussing and executing the budget. 
 
¶3. (U) Some progress on fiscal transparency has been made from 2003 
to date. 
-- The government since 2004 has adopted the Medium-Term Expenditure 
Framework (MTEF), forecasting revenue and expenditure for a three 
year period. 
-- The National Assembly has stepped up its monitoring and 
oversight. 
-- The GON functions under the auspices of the 1999 Constitution. 
The federal budget is published with minimum delay in a government 
publication.  Budget reports are available in print and electronic 
form soon after approval by the National Assembly and President. The 
Minister of Finance made detailed public presentations about the 
budget in the run up to its presentation to the National Assembly. 
Budget data can be found in selected government websites, notably 
www.budgetoffice.gov.ng, and www.fmf.gov.ng. 
 
¶4. (U) In May 2007, the National Assembly passed into law the Fiscal 
Responsibility Act (FSA 2007) to ensure transparency and 
accountability of public expenditures.   The 36 state governments 
agreed to pass fiscal responsibility legislation at the state level 
by December 2007.  The Minister of State for Finance, Aderemi 
Babalola, said 13 states had passed the legislation by late January 
2008 and the others will be encouraged to follow.  The Public 
Procurement Act (Act) was passed by the Assembly and signed into law 
on June 4, 2007.  According to the Act, all budget expenditures on 
major government-funded contracts are screened to ensure that 
expenditures are in line with prevailing international rates. 
 
¶5. (U) Consultations among different segments of society take place 
more than in the past, increasing participation in the budget 
process at all levels, particularly civil society.  In addition, a 
two-day summit on the 2008 budget organized for civil society groups 
and funded by the USG in November 2007 recommended that budget 
allocations be separated to make for better monitoring and 
evaluation.  Participants suggested the government should make 
budgetary allocations for capacity building in ministerial 
departments and agencies (MDAs); increase budget utilization and 
appropriation; support capacity building efforts for civil society 
organizations (CSOs); and make financial allocations for budget 
tracking and evaluation at all levels to strengthen fiscal 
transparency. 
 
¶6. (U) In 2007, USG-supported advocacy efforts contributed to the 
passage of fiscal responsibility and public procurement legislation. 
 The USG also supported passage of the Freedom of Information Bill 
but it has not yet been signed into law.  Since 2004 various USG 
funded activities provided technical support to the Budget Office of 
the Federation, Central Bank of Nigeria, the Office Accountant 
General of the Federation, the Debt Management Office, and the 
National Assembly Budget Office, as well as civil society 
organizations to enhance their capacity to develop sound policies 
that support transparency and good governance in Nigeria. 
 
¶7. (U) Comment: Corruption, transparency and accountability remain 
key problems for this government and this country.  Even though 
progress has been noted in the cable, the GON has not yet turned 
around the real problem of corruption. 
 
SANDERS