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DE RUEHUJA #0760/01 1150700
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P 240700Z APR 08
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 2672
INFO RUEHOS/AMCONSUL LAGOS 9126
RHEBAAA/DEPT OF ENERGY WASHDC
RHEHNSC/NSC WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEKDIA/DIA WASHDC
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS ABUJA 000760 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR AF/W, INR/AA 
DEPT PASS TO USTR-AGAMA 
DOE FOR GPERSON 
 
E.O. 12958: N/A 
TAGS: PGOV KDEM ECON EPET ETRD KJUS KCOR NI
SUBJECT: NIGERIA: BIWEEKLY POL/ECON UPDATES FOR APR 1-15, 
2008 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET 
DISTRIBUTION. 
 
¶1. (U) Following is a joint Embassy Abuja-ConGen Lagos 
compilation of April 1-15, 2008 political/economic 
highlights, which did not feature in our other reporting, 
covering: 
-- Election Tribunals 
-- PDP Politics 
-- Corruption 
-- National Assembly 
-- Economic News 
-- Oil and Gas 
-- Other News 
 
------------------ 
ELECTION TRIBUNALS 
------------------ 
¶2. (U) Chair of the Independent National Electoral Commission 
(INEC) Maurice Iwu delivered a lecture, entitled "April 2007 
elections: What Went Right," at the University of Ibadan. 
Iwu excoriated the ruling People's Democratic Party (PDP), 
and said the spate of state and federal assembly elections 
that tribunals and appeals courts had been nullifying 
throughout the country were due to intra-party disagreements 
within the PDP.  Iwu also blamed the Economic and Financial 
Crimes Commission and the former Attorney General under 
Obasanjo for problems with the 2007 polls (judged by many 
observers to have been largely fraudulent). 
 
¶3. (U) SOKOTO: On April 11, the Kaduna Court of Appeal 
overturned the election of Sokoto governor Aliyu Wamakko 
(PDP) and deputy governor Mukhtar Shagari (former president 
Shehu Shagari's son), claiming they were not qualified to 
stand on the platform of the PDP.  Wamakko and Shagari had 
been candidates of the All Nigeria People's Party (ANPP) 
until they decamped to the PDP in early February 2007.  The 
Democratic People's Party had appealed the decision of the 
Sokoto State Election Tribunal to uphold Wamakko's election. 
The State House Assembly Speaker was sworn-in as acting 
governor pending the results of a new election.  (Wamakko 
served as deputy to former governor Bafarawa from 1999 until 
2005, when he resigned following impeachment allegations by 
the State Assembly.)  New elections are expected within three 
months. 
 
¶4. (U) KEBBI: The election of Saidu Usman Dakingari (PDP) was 
upheld April 11 by the Kaduna Court of Appeal, overruling the 
Kebbi Election Tribunal's earlier decision against Dakingari 
(who is also President Yar'Adua's son-in-law). 
 
¶5. (U) KANO, ZAMFARA, KATSINA, KADUNA: The Kaduna Court of 
Appeal struck out challenges to the elections of Kano 
governor Ibrahim Shekarau (ANPP), Zamfara governor Mahmud 
Shinkafi (ANPP), and Katsina governor Ibrahim Shema (PDP). 
Also, the Kaduna State Election Tribunal upheld the election 
of Kaduna governor Namadi Sambo (PDP). 
 
¶6. (U) BAYELSA: The Port Harcourt Court of Appeal overturned 
the election of Bayelsa governor Timipre Sylva (PDP) April 
15, rejecting the Bayelsa Election Tribunal's earlier ruling. 
 Fresh elections have been ordered within 90 days. 
 
------------ 
PDP POLITICS 
------------ 
¶7. (U) PDP National Chair Vincent Ogbulafor urged party 
members to practice the politics of inclusion.  Ogbulafor 
said during his tenure he hopes to entice more people to the 
party by reforming the PDP through working with opposition 
state executives.  Ogbulafor also endorsed the idea of a 
one-party state and said he envisions a time when all 
Nigerians "would become members of the ruling party and the 
country would become a one-party state."  In addition, the 
PDP Chair remarked that the PDP wants to "rule for 60 years." 
 
¶8. (SBU) Nigerian press reported April 14 that former PDP 
National Chair Ahmadu Ali, who had been approved as Nigeria's 
Ambassador to South Africa, had yet to collect his 
accreditation papers from the Ministry of Foreign Affairs. 
Press indicated Ali may decline the ambassadorship, in 
protest over being refused an ambassadorial nod to a more 
"developed" country (i.e., the U.S. or U.K.), and remain in 
Nigeria.  Ali is also reportedly angry over the treatment he 
has received from President Yar'Adua. 
 
---------- 
CORRUPTION 
---------- 
¶9. (U) Media reports claim that former Wema Bank Managing 
Director Adebisi Omoyeni was sacked by the Central Bank 
(CBN).  John Aboh was appointed to replace him.  The CBN and 
Nigerian Deposit Insurance Corporation (NDIC) accused Omoyeni 
of concealing facts about bank operations.  Following his 
appointment, Aboh announced Wema bank was healthy, and the 
CBN and NDIC concurred.  Omoyeni has sent a petition to 
President Yar'Adua asserting that he was removed from Wema 
Bank because he blocked the bank's acquisition by First City 
Monument Bank (FCMB).  According to Omoyeni, former Wema Bank 
Chief Executive Officer and current CBN Deputy Governor for 
Financial Sector Surveillance, Tunde Lemo, championed FCMB's 
acquisition attempt.  Omoyeni was later arrested by the 
Economic and Financial Crimes Commission on March 27 for 
allegedly perpetrating a $4 million fraud, and other sundry 
financial crimes.  Tunde Lemo has been invited to appear 
before the Independent Corrupt Practices Commission (ICPC) to 
answer questions about his stewardship of Wema Bank, but has 
so far refused to appear.  The ICPC has threatened to arrest 
Lemo. 
 
¶10. (SBU) While reports of pirate attacks on fishing trawlers 
and cargo ships on Nigeria's coastal water have increased in 
recent years, a U.S. Coast Guard officer visiting Lagos port 
told EconOff that the criminal activities on Nigeria's 
coastal water do not meet the technical definition of piracy. 
 U.S. shipping companies in Lagos told EconOff that while the 
increasing rate of criminal activity has resulted higher 
business costs, this problem is expected in some parts of the 
world, including Nigeria, and companies can absorb the 
additional cost.  The biggest challenge for shipping 
companies continues to be corruption and bureaucratic 
bottlenecks at Nigerian ports of entry. 
 
----------------- 
NATIONAL ASSEMBLY 
----------------- 
¶11. (U) The Senate reconvened April 15 after a four-week 
recess.  Besides final passage of the 2008 budget, which 
President Yar'Adua signed April 14, the Senate will address 
Constitutional review, and investigations into the Health 
Committee scandal as well as the sale of federal properties, 
demolition of houses and revocation of lands in the Federal 
Capital Territory under former President Obasanjo. 
 
------------- 
ECONOMIC NEWS 
------------- 
¶12. (SBU) Ministry of Transport Requests Technical 
Assistance: On April 7, Ministry of Transportation (MOT) 
Director Dr. Bolade requested technical support to rebuild 
Nigeria's roads, railways, airports, and waterways; the 
technical assistance request stems from President Yar'Adua's 
December 2007 meeting with President Bush.  The MOT solicited 
support in identifying U.S. contractors, engineers, and 
investors for roads and railway construction.  MOT hopes 
General Electric will revisit their pledge of support and 
develop contracting partners for rail refurbishment, and that 
the USG identify engineering firms to construct bridges. 
 
¶13. (SBU) TIFA Working Group: The U.S.-Nigeria Trade and 
Investment Framework Agreement (TIFA) Working Group's first 
quarterly digital video conference (DVC) took place April 10. 
 The USG was represented by the U.S. Trade Representative's 
Office, State, Department of Commerce, Export-Import Bank, 
Small Business Administration, U.S. Trade Development Agency, 
African Development Foundation, USAID and the Department of 
Agriculture.  The GON was led by Badeji Abikoye, newly 
appointed Director of Trade at the Ministry of Commerce and 
Industry (Abikoye spent the last six years as Nigeria,s 
Trade Chief at the Nigerian Consulate in Shanghai, China.) 
Nigerian agencies present were the Ministry of Commerce and 
Industry, Standards Organization of Nigeria, Nigerian Customs 
Service, Nigerian Export Promotion Council, Ministry of 
Agriculture and Water Resources, and the Association of 
Nigerian Exporters.  The five hour DVC covered AGOA, trade 
and investment, transportation, energy, infrastructure, trade 
capacity building and other assistance.  It was agreed that 
both sides would continue to communicate at regular intervals 
to discuss bilateral trade issues. 
 
¶14. (SBU) Intellectual Property Rights Working Group: As part 
of the TIFA Working Group a separate DVC was held between the 
USG intellectual property rights (IPR) working group 
comprising USTR, State, Department of Justice, U.S. Patent 
and Trademark Office, the Department of Commerce and the 
Nigerian Copyright Commission (NCC) on April 9.  The DVC 
focused on IPR enforcement, status of pending IP legislation, 
public awareness, and training/technical assistance.  Both 
sides agreed to develop an action plan and hold regular 
meetings to review progress made.  (Post will report septel 
on the TIFA in more detail). 
 
¶15. (U) Food Prices: Nigeria is a major rice importer and 
although global prices have gradually increased, domestic 
prices have not matched it.  A possible reason is that 
stockpiles from the 2007 season are still available.  When 
importers buy new supplies the price is likely to go up. 
Local bakers are considering a 25% price increase per bread 
loaf due to rising prices for wheat flour and sugar.  The 
price of bread will increase from $.97 to $1.28 and from 
$1.28 to $1.58, depending on loaf size.  In February 2008, 
Nigerian bakers petitioned the GON to regulate commodity 
prices and raw materials, however were rebuffed.  In 
response, bakers are considering a nationwide strike on April 
¶23. 
 
----------- 
OIL AND GAS 
----------- 
¶16. (SBU)  On April 8, the Managing Director of Texaco 
Nigeria (Chevron's downstream operation in Nigeria) Ruben 
Halfhuid told the Ambassador that Chevron has decided to sell 
Texaco Nigeria.  The move is part of a broader strategic 
review of Chevron's worldwide operations.  The sale does 
not/not reflect on Chevron's interest in upstream oil 
production in Nigeria or future investments in the natural 
gas sector.  A senior local Chevron executive told Lagos 
EconOff that Chevron remains committed to the upstream sector 
in the region. 
 
¶17. (U) Gasoline shortages and long lines at local gas 
stations continue to plague the country, and Lagos in 
particular.  Government regulators stopped another shipment 
of gasoline that contained too high a percentage of ethanol. 
As previously reported, gasoline mixed with ethanol had been 
pulled from the market in March 2008 after motorists 
complained of engine damage.  In a statement to the press, 
one union official speculated that shortages could be 
connected to the upcoming expiration of an agreement between 
unions and the GON not to raise the price of gasoline.  In 
the paper, the union official warned of strikes if the 
government attempted to raise the gasoline price, currently 
set at 70 naira ($ 0.60) per liter. 
 
---------- 
OTHER NEWS 
---------- 
¶18. (U) Former Chief of Army Staff General Ishaya Bamaiyi, 
who served under former Head of State Sani Abacha, was 
acquitted of murder April 3.  Bamaiyi had been standing trial 
since 1999 for the attempted murder of Alex Ibru, publisher 
of Nigerian newspaper The Guardian, and former Delta State 
Sports Commissioner Isaac Porbeni.  Bamaiyi had been arrested 
and charged along with Abacha's Chief Security Officer by a 
Special Investigation Panel established by former President 
Obasanjo, prompting rumors Bamaiyi's arrest was politically 
motivated. 
SANDERS