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UNCLAS SECTION 01 OF 06 ABUJA 001482 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PASS TO USTR-AGAMA 
DOE FOR GPERSON, CHAYLOCK 
 
E.O. 12958: N/A 
TAGS: PGOV KDEM ECON EPET EFIN MOPS PHUM NI
SUBJECT: NIGERIA:  BI-WEEKLY POL/ECON UPDATES FOR JULY 1-16, 2008 
 
REF: A) ABUJA 1346, B) ABUJA 1313, C) ABUJA 0652, D) ABUJA 0217 
 
¶1. (U) The Following is a joint Embassy Abuja, ConGen Lagos 
compilation of July 1-16 political/economic highlights, which did 
not feature in our other reporting, covering: 
 
--Elections 
--National Assembly 
--Corruption 
--State and Local Governments 
--Economic and Business 
--Oil and Gas 
--Niger Delta 
--Human Rights and Trafficking 
--Labor 
 
------------------------------------ 
Election Tribunals, Electoral Reform 
------------------------------------ 
¶2. (U) SARAKI ELECTION UPHELD: On July 16, the Election Petitions 
Tribunal sitting in Ilorin, Kwara State upheld the election of 
Governor Abubakar Bukola Saraki and declared him winner of the April 
14, 2007 governorship election by striking out the consolidated 
petitions filed by the Democratic Peoples Party, the Accord Party, 
and their candidates in the election.  The tribunal insisted that 
the petitioners were unable to establish the polling units or wards 
where electoral malpractices took place and that they made general 
allegations, which could not be substantiated.  It also noted that 
the petitioners failed to meet the demand of sections 144 and 145 of 
the 2006 Electoral Act in proving their allegations of widespread 
fraudulent thumb printing and other alleged irregularities. 
 
¶3. (U) TARABA SENATORIAL ELECTION UPHELD: On July 1, the Court of 
Appeals in Jos upheld the election of Dr. Anthony "George" Manzo 
(Peoples' Democratic Party - PDP) as Senator representing Taraba 
North Senatorial District in Taraba State.  One of Manzo's 
competitors in the 2007 election, Alhassan Algadas (Action Congress) 
had challenged Manzo's victory on the grounds of electoral fraud and 
irregularities.  Due to a lack of evidence, Algadas' petition was 
originally dismissed.  After an appeal from Algadas, the Court of 
Appeal in Jos decided that the appeal also lacked merit, and 
dismissed the petition again. 
 
----------------- 
National Assembly 
----------------- 
¶4. (U) SENATE PRESIDENT DAVID MARK VICTORIOUS: On July 15, the Court 
of Appeals in Jos declared Senate President David Mark (PDP) winner 
of the Benue South Senatorial District election (see ref A).  The 
Court said the decision of the electoral tribunal for Benue state, 
which had ordered a rerun in two local governments of the senatorial 
district, was reached in error. 
 
¶5. (U) FREEDOM OF INFORMATION BILL UPDATE: On July 10, Radio Nigeria 
reported that the Senate concluded its debate on the Freedom of 
Information bill.  Senate spokesman Senator Ayogu Eze said the bill 
will be officially passed by the Senate at the end of September 2008 
after the Senate has returned from its two months recess on 
September 9. 
 
¶6. (U) EL-RUFAI INVESTIGATION REPORT: The Senate Committee on the 
Federal Capital Territory (FCT) released its interim report July 10 
on its investigation into activities of the former Minister of the 
Federal Capital Territory, Nasar el-Rufai, which concluded that he 
had grossly abused his office and was unfit to hold public office in 
the future.  The report also recommended that el-Rufai and his aides 
be held accountable for 32 billion naira ($272 million) in funds 
from the controversial sales of Federal land in the FCT which is, as 
of yet, unaccounted for.  He was also accused of using his position 
to buy the guest house of former Vice President Atiku Abubakar 
during the sale of federal houses. 
 
¶7. (U) SENATE APPROVES NDDC BUDGET: On its final day in session, the 
Senate approved a budget of 89.2 billion naira ($758 million) for 
the Niger Delta Development Commission (NDDC), 10 billion naira ($85 
million) more than proposed by President Yar'Adua, and higher than 
the 61.8 billion naira ($525 million) appropriated to the NDDC in 
2007 under President Obasanjo.  80 billion naira ($683 million) is 
slated for development projects, 4.4 billion naira ($37.5 million) 
for recurring expenses, 3.3 billion naira ($28 million) for 
 
ABUJA 00001482  002 OF 006 
 
 
personnel, and 1.1 billion naira ($9.5 million) in capital 
expenditures.  Senator James Manager (PDP-Delta South) attributed 
the higher allocation to greater oil revenues than originally 
forecast. 
 
¶8. (SBU) SECURITY LEGISLATION IN THE WORKS:  On July 8, Senator 
Anthony Manzo (PDP-Taraba North), former GON Ambassador to Israel, 
introduced SB 128, a "Bill ... for the Enhancement of Nigerian 
National Security and for Other Matters Connected Therewith," in the 
Senate.  Of note is that of 11 co-sponsors of the counterterrorism 
legislation, 4 are from the north, 4 from the South-South (including 
Senator Lee Maeba from Rivers in the heart of the Niger Delta) and 3 
from the South-West.  Senator Manzo indicated to PolOff on July 9 
that the June 19 attack on the Bonga oil platform had highlighted 
the need to address counter terrorism (CT) issues, including the UN 
Conventions on Terrorism, some of which have not yet been ratified 
by Nigeria. 
 
¶9. (U) CONTROVERSY IN THE HOUSE:  On July 1, 2008, House Speaker 
Dimeji Bankole refused to swear into office Charles Udogwu 
Onyekweli, who was scheduled to replace Mercy Almona-Isei as 
Representative of the Ndokwa/Ukwuani Federal Constituency of Delta 
State.  Bankole told Members of the House that he received an 
injunction from the Federal High Court preventing him from swearing 
in Onyekweli.  However, Bankole's lawyer, Dr. Valerie Azinge, 
reportedly accused Bankole of lying about the order from the Federal 
High Court, claiming it did not exist, and misleading his House 
colleagues.  A Nigerian court ruled that Onyekweli was the legal 
winner of the PDP primary ticket, and that Almona-Isei's name was 
unjustly substituted on the ballot and therefore not the legitimate 
winner. (Note: Bankole and Almona-Isei, both PDP members, worked 
together in the Integrity Group to unseat Bankole's predecessor as 
House Speaker Patricia Etteh. End note) 
 
¶10. (U) SENATE CONSIDERING CORPORATE SOCIAL RESPONSIBILITY 
COMMISSION:  The Senate is undergoing debates regarding a bill set 
forth by Senator Uche Chukwumerije (Abia North) to establish a 
Corporate Social Responsibility Commission.  The purpose of the 
Commission would be to provide relief for communities that suffer 
negative consequences due to the activities of industrial and 
commercial companies that operate in their areas.  According to 
media reports, the bill will mandate companies to create policies 
that positively affect the host communities, and penalize 
non-compliance by fining companies a certain percentage of their 
gross annual profits. 
 
---------- 
Corruption 
---------- 
¶11. (U) EFCC CONTINUES INVESTIGATIONS:  Two former ministers of 
Aviation and close associates of former President Obasanjo, 
Professor Babalola Borishade and Mr. Femi Fani-Kayode, were granted 
bail by an Abuja Magistrate Court on July 7 after being arrested by 
Economic & Financial Crimes Commission (EFCC) investigators on June 
¶30.  The two ministers were arraigned in court on July 1 on charges 
of corruption over the misuse of 15.5 billion naira ($128.2 
million). 
 
¶12. (U) In other EFCC news, it is investigating allegations of 
inflation of contracts awarded by Governor Nyako's administration in 
Adamawa State to the tune of 6.8 billion naira ($58.1 million). 
 
¶13. (U) FORMER NDLEA CHAIR ARRAIGNED:  The Independent Corrupt 
Practices & Other Miscellaneous Crimes Commission (ICPC) arraigned 
the former Executive Chairman of the National Drug Law Enforcement 
Agency (NDLEA), Alhaji Bello Lafiagi, along with his special 
assistant Usman Amali on July 7 before a Lagos High Court.  The pair 
was charged with five counts of receiving money for personal benefit 
in the discharge of their official duties and conspiring to use 
their offices to confer corrupt advantage upon themselves contrary 
to Section 26 of the ICPC Act.  However, the absence of Amali due to 
ill health has stalled the trial. 
 
--------------------------- 
State and Local Governments 
--------------------------- 
¶14. (U) NYAKO AVOIDS IMPEACHMENT:  Governor Murtala Nyako of Adamawa 
State survived impeachment reportedly after the President's Office 
and PDP leadership intervened to prevent state lawmakers from 
carrying out their threat to impeach him.  In line with the 
 
ABUJA 00001482  003 OF 006 
 
 
agreement reached in Abuja, Governor Nyako dissolved all the 
caretaker committees he earlier set up in the local government areas 
(LGA).  He also cancelled the primaries he conducted for the 
upcoming local government elections and announced July 19 as the new 
date for fresh primaries.  (Results to follow in next bi-weekly 
update cable.) 
 
¶15. (U) CONTROVERSEY IN OGUN STATE:  The face-off between Governor 
Gbenga Daniel of Ogun State and the State Assembly took a more 
controversial dimension with the Speaker of the House claiming 
Governor Daniel's Chief of Staff came to his house to assassinate 
him.  However, the Governor's Chief of Staff claimed the governor 
was recently poisoned by unnamed political opponents and was flown 
abroad for medical treatment.  The State House, which is allegedly 
influenced by former President Obasanjo and current Minister of 
Steel Sarafa Ishola, was believed to be finalizing plans to impeach 
Governor Daniel.  The PDP leadership intervened to resolve the 
impasse. 
 
--------------------- 
Economic and Business 
--------------------- 
¶16. (SBU) PFIZER CRIMINAL/CIVIL CASE UPDATE: EconOff spoke with 
Pfizer lead attorney Joe Petrosinelli on July 10 and was told that 
the June settlement negotiations in Dubai had mixed results. 
Contrary to Nigerian media reports, Pfizer reps, Kano State 
government reps, and the claimants in the lawsuit were unhappy that 
GON Attorney General Michael Aondoakaa postponed several meetings in 
Dubai and then ultimately failed to show up at a final meeting even 
though he was in Dubai.  Pfizer had hoped to conclude negotiations 
on the concurrent state and federal lawsuits.  Pfizer and the Kano 
State government did proceed with negotiations and Kano reps 
promised to adjourn state criminal and civil cases to October 6.  In 
addition, Pfizer proposed that the next meeting take place between 
the Kano Attorney General and a Senior Pfizer official to discuss a 
final settlement.  Petrosinelli commented that the sides remain far 
apart but "it is time for the principals to meet without the lawyers 
to reach settlement."  The Kano reps said they would pass the 
proposal to the Kano AG and notify Pfizer within a few weeks. 
 
¶17. (SBU) NIGERIAN AGOA DELEGATION VISITS WASHINGTON: Minister of 
State for Commerce and Industry Ahmed Garba Bichi led the eight 
person AGOA delegation (ref B).  The delegation expressed strong 
interest in deepening USG cooperation during a meeting with United 
States Trade Representative (USTR) officials on July 14, and 
attended a reception hosted by U.S. companies operating in the oil 
and gas sector that evening.  The U.S. companies reported that the 
GON reps said they were closely reviewing the model U.S. bilateral 
investment treaty draft and would soon respond with comments.  In 
addition, the GON received comments from U.S. companies on draft 
local content legislation pending in the National Assembly.  Last, 
the delegation expressed surprise at an industry presentation that 
said that the amount of U.S. investment in Nigeria has decreased 
during a period that it had increased in other parts of Africa. 
 
¶18. (SBU) USAID AND ECONOFF MEETING WITH THE NIGERIAN EXPORT 
PROMOTION COUNCIL: In preparation for the July 15 AGOA Forum in 
Washington, and as part of ongoing efforts to boost non-oil AGOA 
exports, EconOff and Acting AID Mission Director met with Nigerian 
Export Promotion Council (NEPC) Acting Director General Aliyu Lawal 
in Abuja to discuss progress on deliverables since the April 10 
Trade Investment Framework Agreement digital video conference. 
Lawal reported that the NEPC has been involved in a turf battle with 
its home ministry, and as a result, has made no progress on 
identifying AGOA focus sectors or putting together an AGOA strategy. 
 At the DVC, NEPC had been tasked with moving forward on both areas, 
but Lawal explained that the GON will need more time.  EconOff 
briefed Lawal about an export promotion event in Minna, Niger State 
on July 28-29, sponsored by the Niger State government and the 
Nigerian Bank of Industry, and supported by the USG Team in Nigeria. 
 
 
¶19. (SBU) ECONOFFS MEETING WITH CITIGROUP NIGERIA CEO: EconOffs met 
with Citigroup Nigeria CEO Emeka Enuwu in Abuja on July 9 because 
the company was concerned with July 3 media reports that charges had 
been filed against the company regarding a legal dispute that was 
previously withdrawn by the GON in March 2008.  In February 2007 
several Citigroup officials were detained by the GON police at their 
headquarters in Lagos after a dispute with a former client over the 
importation of buses.  Soon after the Lagos Consulate and Embassy 
 
ABUJA 00001482  004 OF 006 
 
 
contacted the Inspector General of Police and the Attorney General's 
office to voice concerns, the employees were quickly released. 
According to Enuwu, Citigroup was concerned that new charges had 
been filed recently, and said Citigroup lawyers would be meeting 
with GON prosecutors to discuss the case and would keep the Embassy 
informed. 
¶20. (U) NIGERIA INTERNATIONAL BANK BECOMES CITIBANK NIGERIA LIMITED: 
Nigerian International Bank has changed its name to Citibank Nigeria 
Limited, a subsidiary of Citigroup Inc.  The company started its 
operations in Nigeria in 1984 and will celebrate its 25th year of 
operation next year. 
¶21. (U) MOU BETWEEN U.S. AND NIGERIAN POWER SECTOR REGULATORY 
COMMISSIONS: The United States National Association of Regulatory 
Utility Commissioner (NARUC) and the Nigeria Electricity Regulatory 
Commission (NERC) signed a Memorandum of Understanding (MOU) on July 
15 at the Ambassador's residence that focused on implementing a 
regulatory partnership between both agencies.  The goal is to 
improve regulatory practices and foster a long-term sustainable 
relationship.  The Ambassador noted at the July 15 signing ceremony 
that a sound regulatory framework in the power sector is essential 
to attract private investors from the U.S and elsewhere.  The State 
of Michigan's regulatory experts will carry out the now twinning 
relationship together with NERC. 
 
¶22. (SBU) CISCO SYSTEMS MEETING WITH THE U.S. MISSION: Cisco reps 
met with EconOffs on July 14 to present several business development 
projects funded by multilateral or bilateral donors with whom Cisco 
does business.  Cisco is bidding on the World Bank S&T Education 
Post-Basic Level Project and the 911 Solution. The latter is a 
project designed to provide a basic communications infrastructure 
for the GON during states of emergency.  According to Managing 
Director Hawa Yabani, Cisco is hoping to sign an MOU with Abuja 
Technology Village (ATV) to provide consulting, a business park 
model plan, a systems integration plan, and supply equipment.  In 
addition, Cisco is working on a project with the Ministry of 
Education aimed at enhancing the IT skills of graduates. 
¶23. (U) PRIVATIZATION MAY BE SUSPENDED FOR POWER HOLDING COMPANY OF 
NIGERIA: The Power Sector Reform Committee voted to suspend the 
privatization of the Power Holding Company of Nigeria (PHCN).  The 
committee, asked to review the performance of ongoing power sector 
reforms, based its recommendations on insufficient power generation 
infrastructure, poor maintenance culture, inadequate funding, gas 
shortage, obsolete equipment, weak and inadequate network coverage 
and substandard distribution lines.  It also identified poor billing 
systems, unwholesome practices by PHCN staff, and poor customer 
relations as some of the problems confronting the power sector as 
reason for holding up the privatization. In addition, on July 29 the 
PHCN Board was revamped with the current Minister of Power being 
appointed as Chairperson to oversee addressing the problems outlined 
above. 
 
¶24. (U) GON SPENDS $3 BILLION ANNUALLY ON FOOD IMPORTATION: Recent 
media reports estimate that the GON annually spends $3 billion on 
food importation, mostly on rice, sugar and wheat.  In 2007, more 
than 36% of rice and 99% of sugar and wheat consumed were imported. 
 
 
¶25. (U) EIGHTY PERCENT OF NIGERIAN YOUTH JOBLESS: The Minister of 
Youth Development, Akinlabi Olasunkanmi, reported that 80% of 
Nigerian youth are unemployed.  He cited this high figure as a 
reason for the high-number of criminal activities reported among 
youth.  According to the National Bureau of Statistics (NBS), 
Nigeria's youth population is 80 million, or 60% of the population. 
Olasunkanmi said that annually, only 10% of graduating college 
students are able to find paid jobs. 
 
¶26. (U) WORLD BANK AND GON SIGN FINANCIAL AGREEMENT ON ROAD 
UPGRADES: On July 15, the GON and World Bank signed a 46 billion 
naira ($390 million) financing agreement for the rehabilitation, 
upgrade and maintenance of roads, and the construction of 132 
bridges.  The loan is interest-free and has a repayment period of 40 
years, the projects to be completed within 8 years.  The first state 
in which the agreement will be implemented is Kaduna State, which 
will receive 7.2 billion naira ($61 million) to improve road access 
to rural communities. 
 
¶27. (U) NIGERIAN AIR TRAFFIC CONTROLLERS BEGIN TRAINING IN THE U.S.: 
The Nigerian Airspace Management Agency (NAMA) sent 15 Air Traffic 
Controllers to the Pan-Am Academy in Miami for an eight week long 
training course on Area Radar Control.  Since this training started 
 
ABUJA 00001482  005 OF 006 
 
 
in March 2007, 52 Nigerian air traffic controllers have completed 
the course. 
 
¶28. (U) GON TO SUE EU FOR ECOLOGICAL DAMAGES: The GON is considering 
a $100 billion lawsuit against the European Union (EU) for 
ecological damages caused by reckless waste disposal in Nigeria. 
The Nigerian Nuclear Security Agency (NNSA) claims that EU mining 
companies disposed of radioactive materials in 1100 abandoned mines 
in Central Plateau State, which pose a health risk to two million 
people.  According to the NNSA, the people living near these mining 
fields are at risk for skin, lung and liver cancer, as well as sight 
impairments. 
 
¶29. (U) UK SPENDS 16.6 BILLION NAIRA ($141 MILLION) ON HIV/AIDS IN 
NIGERIA: The United Kingdom reportedly spent 16.6 billion naira 
($141 million) on HIV/AIDS prevention in Nigeria.  The media 
reported that the UK is increasing cooperation with the Nigerian 
National Agency for the Control of AIDS. 
 
¶30. (U) NIGERIA AMONG TOP 12 IN INFANT MORTALITY: According to 
UNICEF's 2008 State of the World's Children's Report, Nigeria is 
among 12 countries reporting the highest mortality rate among 
children under five.  By UNICEF calculations, more than one million 
children die annually in Nigeria, nearly a third of the children 
under five are underweight, and half of the population does not have 
access to improved drinking water sources. 
 
----------- 
Oil and Gas 
----------- 
¶31. (U) GON SUBSIDIZING DIESEL: The Minister of Energy (Petroleum) 
Odein Ajumogobia announced that the GON will subsidize the cost of 
diesel, but did not specify the sum involved.  Currently, the GON 
subsidizes gasoline and kerosene through the Petroleum Support Fund. 
 In 2007, the GON spent 278.8 billion naira ($2.3 billion) in 
subsidies for petroleum products.  With the addition of diesel, some 
industry analysts speculate that this sum will increase to 900 
billion naira ($7.6 billion).  (Note:  A government subsidy to bring 
down the cost of diesel is among the key demands of tanker truck 
drivers, who are threatening to resume a transport strike on July 
¶28.  End note.) 
 
---------------------------- 
Human Rights and Trafficking 
---------------------------- 
¶32. (U) DOMESTIC TIP INCREASING: On July 7, media reports stated 
that trafficking of girls from villages to cities in Nigeria is 
increasing and the state is powerless to stop the trade. According 
to Bello Ahmed, head of the Kano office of the National Agency for 
the Prohibition of Traffic in Persons (NAPTIP), girls aged 12-17 are 
regularly trafficked from villages and brought to the city to work 
as maids.  Apart from being denied access to education, these girls 
are often raped and beaten by their employers.  In addition to 
poverty, trafficking in girls and women is driven by the extreme 
income and gender inequality which exists in Nigeria.  Although 
there is a provision in the Child Right's Act to protect girls from 
exactly this, most northern state assemblies refuse to pass enabling 
legislation due to conflict with cultural and religious practices 
(ref C). 
 
¶33. (U) NEW RULES ON REHABILITATION OF TIP VICTIMS: Carol Ndaguba, 
NAPTIP Executive Secretary, has proposed to the Federal Executive 
Council (FEC) a policy, entitled "National Policy on Protection and 
Assistance to Trafficked Persons in Nigeria." The policy aims to 
regulate rehabilitation programs for victims of human trafficking. 
 
¶34. (U) DISCRIMINATION AGAINST WOMEN: On July 10, broadcast stations 
reported that women groups were still speaking out against a bill 
seeking to punish indecent dressing, nudity in public, sexual 
intimidation and all forms of abuse against women (ref D).  At a 
public hearing at the Senate, the women's groups, including the 
International Federation of Women Lawyers (FIDA), alleged that the 
law, apart from being discriminatory, would also give the police and 
other law enforcement agencies additional powers to abuse women and 
deny them their rights in the name of enforcing the provisions of 
the law. 
 
----- 
Labor 
----- 
 
ABUJA 00001482  006 OF 006 
 
 
¶35. (U) NEW NBA PRESIDENT ELECTED: Mr. Oluwarotimi Odunayo 
Akeredolu, a Senior Advocate of Nigeria, emerged as the new 
President of the Nigeria Bar Association when he was unanimously 
elected on July 2.  Born July 21, 1956, Mr. Okeredolu, a Yoruba from 
south west Ondo State, passed the Bar in 1978, served as Ondo's 
Attorney General from 1997 to 1999, and Chairman of Legal Aid 
Council from 2005 to 2006.  Akeredolu succeeds Mr. Olisa Agbakoba 
whose two-year tenure expires August 29. 
 
¶36. (U) TEACHERS STRIKE CONTINUES: The nationwide primary and 
secondary public school teachers' strike entered its second week 
with most public schools remaining closed.  On June 30, teachers 
throughout Nigeria embarked on an indefinite strike to protest the 
Federal Government's refusal to implement the Teacher's Salary Scale 
(TSS), which would increase teachers' pay.  The GoN maintains that 
it can accommodate the teachers' request to implement TSS in its 
schools, but cannot compel states and local governments to do so. 
The GoN instructed NUT to negotiate directly with state and local 
governments for the implementation of TSS.   Meanwhile, Academic 
Staff Union of Universities (ASUU) and Nigeria Labor Congress (NLC) 
promised to join the strike to force government to accede to the 
demands of the teachers.  Meanwhile, NUT officials have purportedly 
been encouraging private school teachers to join the strike as well 
in order to show solidarity. 
 
SANDERS