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TO RUEHC/SECSTATE WASHDC PRIORITY 2817
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHYD/AMEMBASSY YAOUNDE 0228
RUEHOS/AMCONSUL LAGOS 9199
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
RHMFISS/HQ USAFRICOM STUTTGART GE

UNCLAS SECTION 01 OF 06 ABUJA 000863 
 
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: BI-WEEKLY POL/ECON UPDATES FOR APR 16-30 
 
REF: A. A: LAGOS 152 
     ¶B. B: ABUJA 780 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET 
DISTRIBUTION. 
 
¶1. (U) Following is a joint Embassy Abuja-ConGen Lagos 
compilation of April 16-30, 2008 political/economic 
highlights, which did not feature in our other reporting, 
covering: 
-- Elections: Tribunals, Reforms, Re-Runs 
-- PDP Politics 
-- Corruption 
-- Niger Delta 
-- National Assembly 
-- Economic News 
-- Oil and Gas 
-- Security 
-- Other Noteworthy News 
 
-------------------------------------- 
ELECTIONS: TRIBUNALS, REFORMS, RE-RUNS 
-------------------------------------- 
¶2. (SBU) SOKOTO AND BAYELSA RE-RUNS: INEC announced the 
re-run gubernatorial elections in Sokoto and Bayelsa states 
will take palace May 24.  While INEC cleared Aliyu Wamakko to 
re-contest the Sokoto election on the platform of the PDP, 
some observers complain that this is contrary to the Kaduna 
Court of Appeals April 11 decision which overturned Wamakko's 
election on the basis of Wamakko's ineligibility to stand as 
a PDP candidate. (Reftel A and B) 
 
¶3. (U) SOUTHWEST ELECTION TRIBUNAL UPDATE: The Ekiti, Ondo 
and Osun election tribunals continue to receive evidence and 
hear witness testimony.  In Oyo, Biola Ajimoby (ANPP) filed 
an appeal to overturn an election tribunal ruling that upheld 
the gubernatorial election for Alao Akala (PDP).  Akala's 
lawyers have also submitted an appeal, requesting the 
tribunal to reinstate some of the votes he considers were 
unjustly nullified in the tribunal's ruling. (Note: Governor 
Akala claims the tribunal shortchanged him in determining the 
number of votes he received. End Note.)  In Ogun, the State 
Election Tribunal ruled that ANPP gubernatorial candidate 
Senator Ibikunle Amosu failed to identify his party 
affiliation during the election.  The court has ordered a new 
tribunal to examine the issue.  No date has been set for a 
new trial. 
 
¶4. (SBU) SOUTHEAST ELECTION TRIBUNAL UPDATE:   The Court of 
Appeal in Enugu on April 28 began hearing the appeals filed 
by Enugu Governor Sullivan Chime against the January 18 
election tribunal verdict nullifying his election.   In Abia 
State, Governor Theodore Orji has filed an appeal of the 
tribunal decision invalidating his election, claiming the 
tribunal erred by not recognizing his claim that he had 
resigned as Chief of Staff to the former governor before 
running.  (Note: As Chief of Staff to the former governor, he 
would have been ineligible to run for the governorship had he 
not resigned.  End Note.)  Orji has also appealed a ruling 
that declared him a member of a secret cult, illegal for 
government employees under Nigerian law. 
 
------------ 
PDP POLITICS 
------------ 
¶5. (U) On April 24, the INEC Commissioner for Party 
Monitoring criticized the PDP for the handling of its March 8 
national convention.  The Commissioner said the party,s 
chairmanship aspirants should have withdrawn their candidacy 
48 hours before the election, rather than less than 24 hours 
before the vote.  Nigerian press reported that the PDP had 
reached a consensus on its choice for national chairman and 
deputy chairman on March 7. 
 
---------- 
CORRUPTION 
---------- 
¶6. (U) Nigerian press reported that labor unions and workers 
 
ABUJA 00000863  002 OF 006 
 
 
staged a rally protesting President Yar'Adua's "inability to 
investigate cases of corruption" against former President 
Obasanjo, and calling for Obasanjo to be brought to trial 
over his mishandling of the power sector during his 
eight-year tenure in office.  Nigerian Labor Congress (NLC) 
president Abdulwahed Omar said the protest is organized to 
"ensure that all those who looted the country's funds, 
whether in the power sector, oil sector, or any sector of the 
economy are prosecuted."  Omar added that former minister of 
the Federal Capital Territory Nasir el-Rufai should be 
reprimanded for his "criminal grabbing of government land and 
government houses."  The NLC is reportedly angered over the 
privatization of strategic infrastructures, social services, 
and cultural facilities. 
 
----------- 
NIGER DELTA 
----------- 
¶7. (U) SUIT ASKS OBASANJO TO ANSWER ALLEGATIONS OF MURDER: 
Nigerian press reported April 30 that an Abuja Magistrate 
Court has summoned former President Obasanjo to appear before 
it next month to answer allegations of murder perpetrated in 
Benue and Bayelsa states.  The leader of the Niger Delta 
Volunteer Forces, Dokubo Asari (who had been released June 
2007 following two years in prison for treason charges), 
filed the suit alleging that Obasanjo had ordered the 
Nigerian military into two communities where several 
civilians had consequently been murdered.  (While the 
Magistrate Court has no jurisdiction to hear criminal cases 
involving murder, it is the court of first instance.  If this 
court rules the case has merit, it can then be moved to the 
Abuja Federal High Court.) 
 
¶8. (U) MEND'S "OPERATION CYCLONE": In a statement published 
on its website, The Movement for the Emancipation of the 
Niger Delta (MEND) claimed responsibility for blowing up a 
major Shell Petroleum Development Company pipeline on April 
¶24.  The statement claims that this is one of many pipeline 
attacks under MEND's so-called "Operation Cyclone" meant to 
cripple the oil industry.  The MEND statement said the attack 
was in response to a statement issued by Rivers Governor 
Amaechi that MEND's activities would be "checked through the 
deployment of naval gunboats in the creeks."  The statement 
also reiterated the Movement's support for the detained 
criminal/militant leader Henry Okah.  Subsequent public 
statements by MEND welcomed former President Jimmy Carter to 
"mediate" a peace process in the Niger Delta. 
 
----------------- 
NATIONAL ASSEMBLY 
----------------- 
¶9. (SBU) PolOff spoke with the attorney for senatorial 
aspirant Usman Abubakar (ANPP), who is contesting the 
election of Senate President David Mark (PDP).  The Benue 
State Election Tribunal had earlier ruled to re-run the 
election in two of nine local government areas in Benue. 
Abubakar and Mark both filed appeals to the ruling. 
Abubakar's attorney confirmed he was still in the process of 
drafting briefs for the appeal, and he does not expect a 
decision by the appeals court before June. 
 
------------- 
ECONOMIC NEWS 
------------- 
¶10. (SBU) POSSIBLE PFIZER SETTLEMENT: Pfizer representatives 
met with the Deputy Chief of Mission on April 22 to provide 
an update on ongoing legal cases and settlement negotiations. 
 Pfizer reported a meeting with the Kano State Governor, 
cryptically suggesting the possibility of a settlement soon 
if Pfizer increased its offer.  For now, two sides are far 
apart on the amount.  Pfizer is also planning to pursue 
international arbitration with the GON.  Pfizer 
representatives thanked the Embassy for its support of the 
company. 
 
¶11. (U) POWER POTENTIAL: A U.S. Trade Development Agency 
(USTDA) sponsored team visited Nigeria to meet with officials 
to discuss independent power producers and review two 
 
ABUJA 00000863  003 OF 006 
 
 
potential hydro plants in the northern states of Adamawa and 
Kaduna.  The USTDA consultants told us that the report 
recommends that USTDA move forward with a feasibility study 
for an Adamawa hydro plant at Kiri Dam, which is located on 
the Gongola River, a tributary of the Benue River. This plant 
would produce about 35-50 megawatts at a construction cost of 
about $44 million.  There are no flow records for the Kaduna 
waterfalls site, but the project appears to have 5-15 
megawatt potential.  A feasibility study for the Kaduna site 
is not recommended at this time. 
 
¶12. (U) NATIONAL COUNCIL ON VISION 2020: The media reported 
the creation of the National Council on Vision 2020.  The 
National Council is expected to propose an economic strategy 
that will "catapult Nigeria into the top 20 economies of the 
world by 2020."  President Yar,Adua serves as the chairman 
of the Council, and Vice President Goodluck Jonathan is the 
deputy.  Other government members include the Senate 
President, Speaker of the House of Representatives, Governors 
of Lagos, Imo, Delta, Kware, Bauchi and Kaduna states, as 
well as representatives from federal ministries and the 
private sector.  The main goals of the Council are to approve 
national priorities; develop a comprehensive plan, and 
framework to mobilize resources from the private sector; 
propose appropriate goals, targets and strategies; and 
recommend a monitoring and evaluation mechanism. 
 
¶13. (SBU) "DESERT TO FOOD" PROJECT: On April 28, the Managing 
Director of FramanAgridev, an agricultural development 
company, told PolOff that the GON signed a 28-year memorandum 
of understanding with the company to support a "Desert to 
Food" project in Nigeria.  The project is intended to boost 
employment and development in the agricultural sector. 
FramanAgridev's Desert to Food project would transfer Israeli 
and U.S. technologies and equipment to northern Nigeria and 
reclaim desert lands through massive irrigation and a tree 
and crop planting scheme.  Fifty percent of the funding will 
come from the Federal government, 20% will come from state 
governments, local governments will contribute 10% (and 
land), with the remaining 20% coming from private investors. 
The company estimates that 250,000 workers will be employed 
to complete this project in 19 northern states.  The MD said 
President Yar'Adua supports the Desert to Food project 
because he was involved in the project planning as Governor 
of Katsina. 
 
¶14. (SBU) "SWAMPS TO FOOD" PROJECT: Governor Akpabio of Akwa 
Ibom will sign a Swamps to Food MOU in late May that will 
bring aquaculture, an aquaculture feed mill, and livestock 
farming to the riverine area of this Niger Delta state, 
according to the FramanAgridev MD.  The Akwa Ibom State 
Assembly has already approved 300 million naira for the 
project. 
 
¶15. (U) RICE IMPORTATION: The Government of Nigeria (GON) 
agreed to import 500,000 metric tons (mt) of rice.  N80 
billion ($678 million) will be released immediately from the 
Natural Resources Fund.  A bag of rice costs between N10,000 
($84) and N12,000 ($101) from about N5,500 ($46) four months 
ago.  The GON expects the importation plan to bring the price 
down by half to N6,000 ($50). 
 
¶16. (U) EMBASSY SCIENCE FELLOW: Edward Campbell from the U.S. 
Department of Agriculture arrived in Abuja on April 27 and 
will spend seven weeks working with the Geological Survey of 
Nigeria Agency (GSNA).  Campbell will be augmenting work done 
last year by another Science Fellow that assisted the GSNA in 
creating remote sensing and digitizing programs for 
developing mining concessions.  He will travel to Kaduna, Jos 
and Ile Ife to view GSNA operations, conduct workshops and 
staff training.  Campbell previously worked in Nigeria from 
1982-84 on the Soil Map of Nigeria Project, and again in 2001 
as part of a technical assistance project to Nigeria. 
 
¶17. (U) NUCLEAR SAFETY VISIT: A team from the Office of 
Global Threat Reduction, National Nuclear Security 
Administration (NNSA) of the U.S Department of Energy,s 
Nuclear Security Administration visited Nigeria from April 
 
ABUJA 00000863  004 OF 006 
 
 
19-25.  The team conducted coordination meetings with 
representatives of the Nigerian Nuclear Regulatory Agency 
(NNRA) and discussions on upgrades to protect radioactive 
sources at Nigerian facilities.  The initial meetings were 
held at the NNRA in Abuja, and the team traveled to Zaria, 
Ajaokuta, Ibadan, and Lagos to conduct initial assessments of 
the facilities for security upgrades.  NNSA is planning to 
work with NNRA on potential technical assistance to upgrade 
security. 
 
¶18. (U) MINERALS AND METALS POLICY: To complement the 
Nigerian Minerals and Mining Act of 2007, a new policy was 
approved by the GON on April 29, 2008.  The Minister of Mines 
and Steel, Sarafa Tunji Isola, said the mining policy would 
provide a road map for the country,s mining sector.  The 
Minister reported that the mining sector contribution to 
Nigeria,s GDP stands at 0.05%, and the goal of the Ministry 
is to increase it to 5% within ten years.  The Policy,s 
objectives are to produce coal for power generation, and 
stimulate agricultural and fertilizer production.  As a next 
step, the GON will soon set up state mineral management 
committees. 
 
¶19. (SBU) NIGERIAN OPTICAL-DISK (OD) PLANTS HURTING: On May 
5, 2008 EconOff met with Toju Ejueyitchie, Chairman of the 
Nigerian Association of the Recording Industry (NARI), to 
hear industry comments on OD production.  Ejueyitchie said 
that the Nigerian Copyright Commission has not stopped the 
illegal replication of optical disks in Nigeria and that the 
unlimited and unregulated flow of imported pirated ODs into 
Nigeria will likely lead to the collapse of the domestic 
production industry. 
 
----------- 
OIL AND GAS 
----------- 
¶20. (SBU) EXXON MOBIL STRIKE: The strike that paralyzed Exxon 
Mobil's production in Nigeria officially ended on April 30. 
An official with PENGASSAN, the union representing striking 
workers, told Poloff that the two sides reached an agreement 
that included a twenty percent pay hike and promises to 
review expatriate hiring levels.  While peaceful, the strike 
was one of the most serious in recent years, shutting-in an 
estimated 750,000 barrels of oil for almost a week. 
 
¶21. (SBU) STATE OWNED OIL COMPANY REFORM: At a sidebar during 
a recent conference on energy economics, a top official of a 
major Nigerian National Petroleum Corporation (NNPC) 
operating unit told EconOff that he believed the Yar'Adua 
administration has lost its appetite for reform of the state 
owned oil company.  The official thought that the 
administration had, like its predecessors, grown comfortable 
with the ability to exert influence over the company.  Those 
second thoughts may be evidenced by delays in introducing 
reform legislation. 
 
¶22. (U) OIL AND GAS SECTOR REFORM: At the same conference, a 
member of the National Energy Council sub-committee on NNPC 
reform told the assembled group that a comprehensive oil and 
gas sector reform bill would be introduced to the National 
Assembly before the end of May. 
 
¶23. (SBU) OILFIELD SERVICE INDUSTRY: An official with a local 
oilfield service industry trade group told Econoff that local 
content legislation has passed the Senate and is making its 
way through the House of Representatives.  When asked about 
the capabilities of indigenous oilfield service companies, he 
admitted local firms are not yet able to supply all the goods 
and services at the levels required by the bill, but he 
thought local companies would be able to "partner" with 
foreign firms to find a work around solution.  In a front 
page article in a local daily, House members accused NNPC and 
major oil companies of attempting to delay passage of the 
legislation. 
 
-------- 
SECURITY 
-------- 
 
ABUJA 00000863  005 OF 006 
 
 
¶24. (SBU) TRAFFICKING IN PERSONS: Jennifer Ero, an anti-human 
trafficking activist and founder of the Society for the 
Empowerment of Young People, told PolOff on April 30 that 
similarities in the victims' stories about their experiences 
underscores the highly organized nature of human trafficking 
in Nigeria.  Ero described how victims are moved across 
countries by trafficking syndicates, often through areas with 
little or no infrastructure.  Traffickers meet individual 
victims moved along diverse travel routes, providing the 
documents and logistics required to send them on the next leg 
of their complicated journeys.  Ero opined that the response 
to such a highly organized crime must be just as highly 
organized and cohesive.  Currently, she sees a dysfunctional 
response with little information flow among stakeholders, 
including government agencies, NGOs and victims.  Ero hopes 
that educating young people to resist traffickers' attempts 
to lure them abroad, while supporting legitimate 
income-generating alternatives for potential and returning 
victims will reduce the influence of traffickers. 
 
¶25. (U) WEST AFRICAN CISSA CONFERENCE IN ABUJA: Nigerian 
press reported that President Yar'Adua addressed the 
Committee of Intelligence and Services of West Africa (CISSA) 
conference in Abuja, urging attendees from West Africa to 
find solutions to problems of cross-border smuggling, drug 
and human trafficking, and terrorism.  The President asked 
attendees to establish a mechanism to ensure that 
policymakers of West African countries are provided with 
intelligence and security information to enable them to 
respond to the threats in the region.  Yar'Adua also stressed 
the need for "global networking by intelligence and security 
services to tackle the rising wave of international terrorism 
and other asymmetric threats," and specifically, for regional 
cooperation between intelligence and security services in 
West Africa.  Yar'Adua also praised Liberia, Sierra Leone, 
and Cote d'Ivoire for their democratization efforts, which 
Yar'Adua said, have helped stabilize the region. 
 
--------------------- 
OTHER NOTEWORTHY NEWS 
--------------------- 
¶26. (SBU) NIGERIAN ALIEN REGISTRATION PROCEDURES: During an 
April 25 courtesy call on Consul General Blair, Assistant 
Comptroller for Zone D, Nigerian Immigration Service (NIS), 
General E.C. Nnamdi expressed his desire for personal and 
staff training similar to that he attended approximately 
twenty years ago in the United States.  He said the NIS would 
appreciate more advance notification of deportees arriving at 
the Lagos airport from the United States.  The Consul General 
assured him that the Consulate informs NIS of returning 
deportees as soon it receives notification from the 
Department of Homeland Security.  She noted that that this is 
an issue worldwide and not unique to Nigeria, but she would 
ask the officer that normally liaisons with the U.S. Marshals 
and the Department of Homeland Security to contact him.  When 
asked about Nigeria's Alien Registration card and the 
procedures required for alien movement within the country, 
Nnamdi explained that there are standard, federal procedures 
country-wide.  Resident aliens require an exit obtained at 
the point of departure when leaving their state of residence. 
 The stamp costs 200 naira.  Registration with a new state in 
Nigeria is required only if the stay is longer than 21 days. 
(Note: The Consul General, Consulate officers, and private 
American citizens in Nigeria have been told various stories 
regarding these procedures.  End Note.) 
 
¶27. (U) STATE COURTS HAVE HEAVIEST WORKLOAD: At an April 30 
meeting with the Assistant Director of the Federal Ministry 
of Justice, Lagos Liaison Office, C. Ibekwe told Legatt and 
PolOff that the court system in Nigeria, loosely based on the 
British and American models, sees most of its work at the 
state level.  The hierarchy of courts begins at the local 
magistrate level, then the state level, then the federal 
level, with appeal courts at the state and federal levels. 
Family courts, mobile courts, and traditional courts also 
comprise part of the justice system in Nigeria, but address 
different issues.  A person, she explained, may be charged 
under civil and criminal law, depending on the nature of the 
 
ABUJA 00000863  006 OF 006 
 
 
act committed.  In general, federal level laws tend to have 
federal level enforcement agencies such as NAPTIP, NAFDAC, 
EFCC, and ICPC. 
SANDERS