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R 281413Z OCT 08
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 0261
INFO RUEHUJA/AMEMBASSY ABUJA 9909
RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC

UNCLAS SECTION 01 OF 03 LAGOS 000427 
 
SIPDIS 
 
STATE PASS OPIC FOR DERB, ZHAN, MSTUCKART, JEDWARDS 
STATE PASS TDA FOR LFITTS, PMARIN 
STATE PASS USAID FOR NFREEMAN, GBERTOLIN, GWEYNAND, SLAWAETZ 
STATE PASS EXIM FOR JRICHTER 
DOC FOR 3317/ITA/OA/KBURRESS 
DOC FOR 3310/USFC/OIO/ANESA/DHARRIS 
DOC FOR USPTO-PAUL SALMON 
TREASURY FOR DFIELDS, AIERONIMO, RHALL, DPETERS 
TRANSPORTATION FOR KSAMPLE 
 
E.O. 12958: N/A 
TAGS: EAID EFIN EINV PGOV NI
 
SUBJECT: Nigeria: Abia Commissioner of Finance Describes Progress on 
State Fiscal Responsibility and Education 
 
Sensitive But Unclassified; Handle Accordingly 
 
¶1. (U) Summary: In an October 9 visit to the ConGen Lagos, Abia 
Commissioner of Finance, Max Adindu said that the state had 
increased revenue by 27 percent, in part because of an innovative 
program that utilizes the market unions as tax collectors.  Abia has 
equipped 120 high school laboratories and employed 150 science 
teachers to improve science teaching in the state, and is seeking 
U.S. sources for the purchase of Braille and other equipment for 
educating the disabled. The Geometric independent power project 
(IPP) in Aba will begin operation in December, and help revive 
industry in the state.  The state remains committed to stamping out 
piracy at the Aba market.  Abia has constituted a state security 
force to complement the National Police Force.  End summary. 
 
¶2. (U) On October 9, Dr. Max Adindu, Commissioner for Finance, Abia 
State, South-East Nigeria, met with Consul General Donna Blair and 
PolOffs, to discuss economic developments in his state. Adindu, who 
was previously Commissioner of Education, said he had run against 
the current governor in the 2007 election and lost, but when offered 
a job by the Governor, decided to accept in the interest of the 
state. Te partnership has resulted in better education and 
increased revenues for the state, he said. (Note:  Abia, located in 
the south-east geopolitical zone, is an oil producing state which 
earns over naira 400 million (USD 3.4 million) in monthly derivation 
revenue, in addition to an average naira 2.1 billion (USD 17.7 
million) federally allocated revenue that accrues to the state 
monthly. End Note) 
 
Fiscal Responsibility Legislation on Second Reading 
--------------------------------------------- ------ 
 
¶3. (U) Abia State Assembly is already far along in its consideration 
of fiscal responsibility and government procurement legislation. The 
bills are already up for the second reading, Adindu said, and he 
expects that the legislation will be passed in the next several 
weeks. 
 
Education: Schools Retooled For Science Education 
--------------------------------------------- ---- 
 
¶4. (U) Adindu said his first action as Commissioner of Education was 
to close down over 400 illegal and unapproved schools that had been 
set up by unqualified persons. Such schools, both private and 
public, were later rehabilitated and approved after qualified 
teachers were engaged. The state also retooled 120 high schools 
laboratories by procuring micro-science kits through a federal 
government program facilitated by a consortium called SkillG, for 
studies in physics, chemistry, biology and introductory technology. 
He said Abia state used its portion of the federal Education Tax 
Fund (ETF) to employ and train teachers, particularly science 
teachers, because the ratio had fallen to 2 science teachers to 
1,000 children in some schools. Over 150 science teachers were 
recently employed by the state. 
 
Internally Generated Revenue, Youth Employment Up 
--------------------------------------------- ---- 
 
¶5. (U) During his scant two months as Finance Commissioner, Adindu 
said he had already grown the state's internally generated revenue 
(IGR) by 27 percent from August through September.  He started an 
innovative program whereby market men and women were encouraged to 
pay their tax to the market unions which, in turn passed them on to 
the ministry, retaining a percentage as a commission. He also used 
radio and television ads, to convince people that the taxes they 
paid would result in improvements in basic services. The state has 
also intensified its employment generation drive by giving soft 
loans to new graduates through microfinance banks. Young graduates 
are encouraged to register with the Department of Youth Employment 
Generation under the Ministry of Youth Development after joining 
cooperatives. Over 700 youths are currently registered with the 
program, he said. 
 
December Power Plant Start Up To Revive Industry 
 
LAGOS 00000427  002 OF 003 
 
 
--------------------------------------------- --- 
 
¶6. (U) Adindu told the Consul General that an Independent Power 
Plant (IPP) operated by Geometric, will come on stream in December 
¶2008.  The Aba-located plant will lead to significant development of 
industries and employment opportunities in the area, Adindu said. 
The plant will also supply power to Umuahia, the state capital, in 
the future, which will attract businesses to the capital.  According 
to the Commissioner, improving the state's infrastructure is a major 
focus of the state government and the success of Geometric is a 
critical confidence booster. The state plans to build a refinery, 
new roads and revive old industries, including state-owned poultry, 
ceramic, brewery and textile companies. The Governor, who 
articulated a 14-point agenda at his inauguration, plans to create 
an industrial estate in each of the three senatorial zones of the 
State. 
 
State Rehabs Water System 
------------------------- 
 
¶7. (U) Abia has an integrated water system, with a network of pipes 
that carries water between communities. The state coordinates with 
Local Government Areas (LGA) to assure that where pipe borne water 
is not available, the LGA sinks boreholes. 
 
State Committed to Stamping Out Piracy at Aba Market 
--------------------------------------------- ------- 
 
¶8. (U) Stamping out the production and sale of pirated and 
counterfeit goods at Aba market is another priority for the 
government. According to Adindu, the state government is committed 
to stamping out such activities in the state and would welcome any 
assistance from the U.S. Government. 
 
State Security to Complement Police 
----------------------------------- 
 
¶9. (U) Adindu said crime in Abia state is low; criminal kidnappings 
do, however, happen.  This is because the Nigerian Police Force 
(NPF) is not effective in dealing with perpetrators. As a result, 
the state government has created its own state security force to 
work in collaboration with the NPF. Other South-East (SE) states 
have replicated the force to complement efforts of the NPF. Adindu 
said SE states engage retired police officers to train the state 
security force. 
 
SE States Pull Together to Drive Economic Development 
--------------------------------------------- -------- 
 
¶10. (U) Adindu opined that, despite the fact that the geopolitical 
zone is split between states controlled by the Peoples Democratic 
Party (PDP) and those controlled by opposition parties, there is a 
lot of collaboration on economic development. The governments are 
putting aside political differences and partnering to improve the 
region's economy. All political alliances are reserved strictly for 
election times, Adindu said, and suggested other regions, such as 
the South-West, should adopt a similar approach to foster economic 
development. 
 
State Asks Help with Education for Disabled 
------------------------------------------- 
 
¶11. (U) The Commissioner requested U.S. Government assistance in the 
provision of specialized equipment and reading materials for the 
education of disabled persons in the state. Poloffs introduced 
Adindu to Foreign Commercial Service (FCS) and Foreign Agricultural 
Service Chiefs; FCS will provide information about U.S. sources for 
Braille and other equipment to Adindu. 
 
¶12. (SBU) Comment: Governor Theodore Orji (People's Progressive 
Alliance - PPA) is an opposition party governor who undoubtedly 
hopes to make his mark on the state, and to distinguish himself from 
the ruling PDP party. Like other governors, Orji is pushing for 
state-led initiatives to address fundamental problems hampering 
 
LAGOS 00000427  003 OF 003 
 
 
socio-economic development in Nigeria, namely infrastructure, 
security, and education.  For Nigeria, problems persist not for a 
lack of planning, but because of the unwillingness or inability to 
implement the plan on the part of the political leadership. At this 
point, Post defers judgment on Adindu's claims until we have the 
opportunity to evaluate them on the ground.  End Comment. 
 
¶13. (U) This cable has been cleared by Embassy Abuja. 
Blair