VZCZCXRO6731
PP RUEHMA RUEHPA
DE RUEHUJA #1082/01 1631516
ZNR UUUUU ZZH
P 111516Z JUN 08
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 3076
INFO RUEHOS/AMCONSUL LAGOS 9399
RUEHZK/ECOWAS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS SECTION 01 OF 02 ABUJA 001082 
 
SENSITIVE 
SIPDIS 
 
DEPT PASS TO USTR-AGAMA AND USTDA FITTS/MARIN 
TREASURY FOR PETERS AND HALL 
DOC FOR 3317/ITA/OA/KBURRESS & 3130/USFC/OIO/ANESA/DHARRIS 
USDA/FAS FOR ASIF CHAUDRY, DOROTHY ADAMS 
 
E.O. 12958:  N/A 
TAGS: ETRD ECON EINV ENRG EAGR EAID ELTN NI
SUBJECT: NIGERIA: USTDA VISIT ELICITS GON ASSISTANCE REQUESTS 
 
REF: A. ABUJA 760 
 
     ¶B. ABUJA 411 
     ¶C. ABUJA 402 
 
¶1. (U) Summary: During May 5-12 meetings with U.S Trade and 
Development Agency (USTDA), Nigerian government (GON) officials 
expressed interest in USTDA providing technical assistance centered 
on sustainable capacity building, technical training, international 
standards development, guidance on essential public-private 
partnership frameworks, performance-based contracting/procurement, 
and strong requests for U.S. contractors, goods and services. End 
Summary 
 
¶2. (U) From May 5-12, 2008 a USTDA team comprised of Lida Fitts and 
Paul Marin and accompanied by EconOffs met with Odein Ajumogobia, 
Minister of State for Energy (Petroleum); Chief Sarafadeen Tunji 
Isola, Minister of Mines & Steel Development; Hajia Fatima Balarabe 
Ibrahim, Minister of State for Energy (Power) (Ambassador Sanders 
attended these sessions); Irene Chigbue, Director General of the 
Bureau of Public Enterprises; and representatives at the Ministry of 
Commerce and Industry (MCI), Ministry of Transportation (MT), the 
World Bank (WB), Nigerian Stock Exchange (NSE), and Civil Aviation 
Authority (NCAA) to discuss potential areas of technical assistance. 
 
 
Ministry of Commerce and Industry 
--------------------------------- 
 
¶3. (U) On May 6 the USTDA team and EconOffs met with Ministry of 
Commerce and Industry Trade Director Abikoye to discuss potential 
projects.  The officials of the ministry highlighted current 
initiatives and needs of the ministry to include expanding non-oil 
exports for products that have export market potential; development 
of industrial clusters; and development of enterprise zones.  The 
TDA team showed an interest in better understanding the non-oil 
export opportunities, like cassava and shea butter.  Director 
Abikoye invited the TDA team and EconOffs to visit a pilot 
production plant near Abuja.  The Ministry officials also 
highlighted the need for training in trade negotiations and 
upgrading of the Abuja Commodities Exchange to meet international 
standards. 
 
Cassava Plant - Not Yet Ripe 
---------------------------- 
 
¶4. (U) On May 7 the USTDA team and EconOffs traveled with 
representatives from the Ministry of Commerce and Industry to a 
pilot project cassava production in Nassarawa state.  The cassava 
production plant and adjoining 87 hectare cassava farm were created 
as part of the Cassava Initiative (CI), which focuses on increasing 
cassava production and uses, including exports. 
 
¶5. (U) A road to the plant/farm site had not yet been built, 
although we were told Nassarawa state officials promised it would be 
complete in 2007.  The team expected to visit an operating cassava 
plant, but upon arrival only a dog, several chickens and security 
guards greeted the USG visitors.  There were also no electricity 
lines leading to the plant.  EconOffs observed zero construction 
activity, unfinished buildings without floors, and missing roofs. 
There was a new electric generator and borehole for access to water. 
 We were informed that a local manufacturer is ready to deliver the 
cassava processing equipment when the plant's infrastructure is 
complete.  Despite these shortcomings CI reps explained that the 
plant would be up and running within three months.  When the plant 
is running, more than three tons of cassava per day will be 
processed.  The plant will focus on producing high-grade flour, 
pellets, chips and gari. 
 
¶6. (U) The CI received 20 million naira (US$170,000.00) funding for 
the construction and equipping of the plant in 2006.  However, the 
funds have been spent and there is no funding from the current GON 
budget for the plant's operation.  When asked what will happen next, 
CI reps contended that funding will be found by the GON or the 
private sector will take over the plant.  The CI reps asked the USG 
for assistance in completing the project. 
 
Meeting with Nigerian Stock Exchange 
------------------------------------ 
 
¶7. (U) Nigerian Stock Exchange (NSE) General Managers Binos Yaroe 
and Uzoma Onyekuru discussed the on-going USTDA-funded technical 
 
ABUJA 00001082  002 OF 002 
 
 
assistance project to integrate the Ghana and Nigerian stock 
exchanges. Due to interest from other countries, the project will 
also lay groundwork for a common stock exchange market with a 
harmonized operation strategy for West Africa.  This integrated 
market would include countries with or without domestic stock 
exchange markets, and offer a common trading platform, uniform 
listing rules, and consistent membership regulations. NSE had 
invited several countries to participate in regional planning, but 
is working with only Sierra Leone at this point. The report for the 
project, sponsored by USTDA, is expected to be complete by the end 
of 2008.  This report will provide an assessment of the start-up 
capital and technical requirements and serve as a guidebook for the 
next phase of physical integration.  Exchange officials requested 
USTDA's assistance in obtaining contacts at U.S. stock exchanges to 
learn about the procedures for demutualizing the exchange. 
 
Meeting with Civil Aviation Authorities 
--------------------------------------- 
 
¶8. (SBU) Harold DeMuren, Director General of the Nigerian Civil 
Aviation Authority (NCAA), sought assistance in instituting a 
meteorology system, improving the air traffic control system, and 
developing aviation human capacity.  DeMuren said weather had a role 
in every civair accident in recent years and the Nigerian civil 
aviation lacks adequate weather forecasting.  On air traffic control 
and communication, Nigeria is limited to search and recovery, not 
search and rescue, because it does not have the capability to locate 
an aircraft in time for rescue.  Describing Nigeria's aviation 
communication system as "absolutely dead", he said the current 
system must move from being ground-based to satellite-based.  There 
is an "acute shortage of skilled manpower" in the civil aviation 
sector, DeMuren shared.  Four NCAA-trained staff members had left 
for more lucrative offers by private airlines and other industries. 
 
 
¶9. (U) Managing Director Richard Aisuebeogun, Federal Airports 
Authority of Nigeria, made a comprehensive presentation on the state 
of Nigerian airports, including airports and areas direly in need of 
investment.  Broadly speaking, investment is needed in 
infrastructure rehabilitation, construction and expansion; 
procurement of new equipment; institution of safety provisions; 
construction of maintenance facilities; and security and safety 
training.  He also hopes to attract investment in the construction 
and management of independent power plants (IPPs) around the 
airports as a solution to power outages.  (Note: Aiseubeogun made a 
similar presentation at the 6th Nigeria-China business and 
Investment Forum in China, and reportedly some Chinese firms 
indicated interest in investing in IPPs and other projects. End 
note) 
 
Infrastructure Projects 
--------------------------------- 
 
¶10. (U) The infrastructure request for assistance from the 
Ministries of Transportation, Energy, and Mines include highway 
planning, rail transport, rail passenger concession planning, mass 
transit, coal for power generation, development of solid mineral 
mines, gas pipeline integration planning, development of research 
centers for renewable energy and technical skills training for 
power, energy, and transportation personnel.  Accompanying this 
assistance request is a common thread for support in how Nigeria can 
get American businesses and experts to come to Nigeria and to export 
their products and services, craft a framework for public-private 
partnership legislation and performance-based 
contracting/procurement. In addition, there are strong requests for 
capacity building activities to sustain and grow the infrastructure 
and resource sectors. 
 
¶11. (U) COMMENT: The ministries of transportation, energy, and mines 
have, over the course of meetings in the last four months with 
econoff, consistently said that they want, trust, and prefer U.S. 
engineering, project management, training, goods, and services to be 
the anchor for the implementation of rebuilding a sustainable 
infrastructure. END COMMENT.) 
 
SANDERS